THEC seeks $1.3M for Advise TN, $335M annual capital-maintenance target and flags lottery risk

Steven Gentile, executive director of the Tennessee Higher Education Commission (THEC), told the Finance, Ways and Means Committee on March 18 that sustained investment in higher education remains a priority as enrollment and dual‑enrollment measures rise.

“Last year we were number one in the country for FAFSA completion,” Gentile said, summarizing national rankings and enrollment growth. He added Tennessee led the nation in several measures and emphasized the state’s increases in dual enrollment and TCAT dual-enrollment participation.

Why it matters

Gentile detailed THEC’s budget priorities, focusing on two areas: agency‑level requests and systemwide higher education funding. The commission asked the legislature to add $1.3 million in recurring funds to Advise TN, a program that embeds counselors in underserved high schools. Gentile said the program has produced “upwards of 10%” increases in college enrollment where it is used and that without additional recurring funds “AdviseTN next year will be serving 6,500 fewer high school students.”

Capital maintenance and deferred needs

THEC officials presented capital requests and estimates: the commission requested $335 million in capital maintenance for institutions in the coming year and noted campuses jointly estimate about $3.6 billion in deferred maintenance. Gentile explained that recurring capital maintenance in recent years has stabilized at about $50 million per year, which funds roughly 20 projects, but that the combined deferred backlog exceeds what recurring funding covers.

Lottery revenue and scholarship pressure

Committee members pressed THEC on lottery-funded scholarships. Gentile said second-quarter lottery revenue was down year over year and that while the state holds a $100 million reserve to cover shortfalls, projected scholarship obligations could exceed net lottery proceeds beginning in fiscal 2027. He said THEC and the Tennessee Student Assistance Corporation (TSAC) are conducting evaluations of HOPE and other scholarship programs and would be prepared to recommend changes if reductions become necessary. “We have evaluation underway right now to see what’s working, what’s not working,” Gentile said.

Rural health and other program asks

Gentile described a $12.7 million appropriation for a rural‑health task force modeled on the GIVE Act; the commission issued an RFP and had not yet deployed the funds as of the hearing. He said that funding is intended as year‑one of a multiyear distribution and that evaluation components will be built into awards. Gentile also reiterated THEC’s request for additional outcomes‑funding growth beyond the $17 million the commission received, saying the commission originally requested $40 million and that $23 million remains unfunded to fully cover outcomes growth.

Questions and responses

Committee members asked about the time and validity of a comprehensive statewide capital facilities assessment THEC had proposed for $7.5 million; Gentile said the governor’s budget did not include the request and that such a study would take one to two years to complete and likely have a useful shelf life of about 10 years.

Gentile closed by stressing the commission’s priorities: maintain investments that have helped Tennessee rise in national metrics and direct resources to programs — including Advise TN, capital maintenance, and outcomes funding — that senior staff said produce measurable results.

Ending

THEC’s testimony set the stage for detailed institutional requests that followed in the hearing. The committee asked follow‑up questions about timelines, evaluation plans and the risk that lottery proceeds might not cover projected scholarship costs in later fiscal years.