Audit & Business committee advances FY25 estimated and FY26 proposed budgets, capital requests and consent items to full board

The Audit & Business Committee reviewed the university's fiscal year (FY) 2024–25 estimated budget, FY 2025–26 proposed budget, capital-outlay requests for 2026–27 and several disclosed construction projects and routine consent items, then voted to forward those items to the full board.

Tom Stinson, vice president for finance and administration, presented the FY25 estimated budget and FY26 proposed budget and summarized key changes since last year’s July proposed budget. He told trustees the estimated FY25 numbers reflected a conservative approach that carries some one-time funds forward into operating categories; in the committee discussion he cited tuition and fee revenue increases, fringe-benefit adjustments tied to GA fee waivers, and operating transfers to plant projects.

Stinson said the university’s FY25 estimated revenue figure and expense estimate differ because the estimated expense line includes prior-year one-time carryforwards. In the discussion trustees asked about athletics revenue, projected increases related to a new stadium, and the presidential scholars scholarship model. Stinson noted the university budgeted about $1.3 million for the presidential-scholars program for FY26 and described the internal models used to project scholarship costs and net tuition revenue.

The FY26 proposed budget presentation included these highlights: an estimated tuition-and-fee increase tied to the tuition action approved earlier this year (the proposed budget as submitted for state review did not assume additional Board-approved tuition changes that might be approved this summer), a roughly $620,000 increase in indirect-cost recovery from grants, and specific state appropriations and salary adjustments passed by the legislature. Stinson told the committee the proposed budget did not assume the next fall’s enrollment increase and that the university plans to reflect actual enrollments in the October revised budget.

On capital-outlay priorities for 2026–27, the committee approved the university’s request to THEC (Tennessee Higher Education Commission), with the Life Sciences building ranked first (estimated match of about $8.7 million; one-third of that private philanthropic match is required by state rules) and a Social Sciences building listed second (estimated match about $8.4 million). Stinson and others explained the Life Sciences project would modernize laboratory and biology space that is currently inadequate and that the Social Sciences building would replace aging classroom and office space.

The committee also approved disclosing two smaller campus projects: a biology greenhouse (estimated cost about $250,000) to replace an existing greenhouse lost with other renovation work, and a student-requested bike shelter near a peripheral parking lot (estimated cost roughly $200,007.50). Trustees said the bike-housing idea came from students; Stinson said student parking funds would cover construction and that the university would monitor usage and security.

Committee members voted to forward the FY25 estimated and FY26 proposed budgets, the capital-outlay priority list and the disclosed projects to the full board for action. The committee also approved forwarding consent items discussed in the meeting, including an emeritus contract for the outgoing president, a policy amendment (Policy 511.1 on fee charges/refunds to allow timely dual-enrollment adjustments based on THEC grant amounts) and tenure recommendations; those items were placed on the full board consent agenda.

Roll-call votes on the committee motions were held and recorded in the meeting transcript; committee chairs and the secretary conducted the votes. The committee adjourned to executive session after completing its public business.