Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget And Financial Report topic
No spam. Unsubscribe anytime.
Governor's budget proposal would add $2.27 million recurring to APSU; committee reviews FY23–24 financial health
Summary
Associate Vice President Sandra Hamilton told trustees the governor's recommended FY2026 budget includes a recurring $2,274,500 increase for APSU and a $2,000,000 non‑recurring capital maintenance allocation; staff then reviewed FY23–24 financial ratios and noted a $20 million state payment related to the Oracle ERP transition.
Associate Vice President for Budget and Finance Sandra Hamilton updated the Austin Peay State University Business and Finance Committee on the governor's recommended budget for fiscal year 2026 and the university's FY23–24 financial results during the meeting.
Hamilton said the governor's recommendation includes a recurring increase in APSU’s state operating appropriation of $2,274,500. She told trustees that $656,700 of that amount is earmarked for employee benefits related to health insurance premium increases and that $1,617,800 is formula funding the university expects to apply toward a 2.6% employee salary increase. Hamilton also said the governor's budget proposal includes $2,000,000 in non‑recurring funds for capital maintenance; she identified that amount in committee as related to the Dunsinor HVAC capital project (as stated in presentation materials).
Hamilton emphasized the governor's recommendations are proposed and have not been finalized by the General Assembly: “The governor's recommended budget has been proposed for fiscal year 20 26. It hasn't been fully approved yet.” Trustees were told the recurring increase is expected to be available to the university if the budget is enacted.
Vice President for Finance and Administration Shahruz Rehbovar then presented the FY23–24 financial report, which used standard higher‑education benchmarking ratios (primary reserve ratio, viability ratio, return on net assets, net operating ratio, and the composite financial index). Rehbovar noted changes in the university’s ratios over recent years and clarified that a $20,000,000 state payment in FY24 for the Oracle ERP transition materially affected some year‑over‑year comparisons and inflated the return on net assets figure relative to prior years. He also explained that the elimination of HEERF federal relief funds affected the net operating ratio comparison across years.
On the ratios, staff presented that APSU's primary reserve and viability ratios remain above the “line of caution” and near the expected national benchmark levels; staff said the composite financial index was at or above the expectation line for the three‑year comparison presented. Trustees asked whether the state sees these reports; Hamilton said financial numbers are submitted to the Tennessee Higher Education Commission (THEC), which compiles comparative reports for LGIs (locally governed institutions).
The committee took no action on the governor's budget briefing or the FY23–24 financial report; both items were presented for information only.
