UT System approves FY 2025–26 operating budget; trustees discuss tuition, state funding and affordability programs
Loading...
Summary
The University of Tennessee System approved a FY 2025–26 operating budget that reflects a $58 million increase in state funding, tuition adjustments on some campuses and a $39 million salary plan. Trustees discussed tuition transparency, UT Promise and student affordability before approving the budget by voice vote.
The University of Tennessee System finance committee approved the FY 2025–26 operating budget after presentations from system finance leadership and extended discussion about tuition, state funding and student affordability.
Treasurer Luke Librin and Associate Vice President Ron Loewen presented financial results and the proposed budget. Librin reported year‑to‑date revenue growth driven by gross tuition and state appropriations and said the system’s balance sheet remains strong, with $147 million increase in cash and 267 days cash on hand system‑wide as of March 31. Loewen summarized the FY 2025–26 operating proposal and said the system will receive an additional $58 million in state funding for the year, $46 million of which is recurring.
Loewen told trustees recurring state increases over the last five years total nearly $300 million, driven in part by a performance‑based funding formula. He noted $19 million in new formula funding to support faculty and staff salary pools and that the proposed salary plan will cost about $39 million in total, of which roughly $21.6 million is funded by the state and the remainder covered by tuition growth, auxiliary revenue and restricted sources.
The budget package includes tuition adjustments that differ by campus: no tuition increase for Knoxville undergraduates, and 3% increases at Chattanooga, Martin and Southern (Health Science Center professional programs have separate rates). Mandatory fees vary by campus; overall total price changes cited ranged from roughly 0.5% (Knoxville) to about 3.1% (Southern).
Trustees discussed housing and meal costs as part of total student price, the UT Promise program (which provides free tuition/fees for Tennessee residents with family income under $75,000), and the challenge of long‑term tuition planning if state funding were to change. Several trustees asked staff to provide details on the net price and the share of students receiving different forms of aid; one trustee suggested exploring a four‑year price guarantee for incoming students with an out clause tied to state appropriations.
After discussion, the committee moved and approved the FY 2025–26 operating budget as presented; the committee passed the motion by voice vote.
