The Tennessee State University Board of Trustees on Nov. 20 approved a revised FY2026 institutional budget that reduces a previously projected shortfall after a state appropriation and stronger enrollment.

Jim Grady, a consultant who presented the revised October budget, told trustees the net operating deficit in the June proposed budget was roughly $39 million; the revised budget now shows a net operating deficit of about $1.8 million. Grady said the change was driven largely by a $35 million appropriation received under an MOU and about $6 million of better-than-expected tuition and fees tied to enrollment.

Grady outlined expense changes that partially offset the revenue pickup: personnel expenses rose by about $6.1 million from the June projection — almost $4 million of that increase reflects higher market compensation for positions that had been vacant when the earlier budget was prepared — and non-personnel costs rose by about $2.2 million for items including CRM fees, insurance premiums and other adjustments. Grady told trustees the university had reviewed disbursements and departmental needs and said he is cautiously optimistic that actual results may out-perform budgeted assumptions because of vacancy factors and timing.

Trustees questioned the completeness of the reconciliation and whether more items might be found; Grady described diligence around bank statements, payroll stubs and multi-year disbursement review and said internal checks had been performed. Trustee Terrence asked for confirmation that the $4 million adjustment related to updating compensation assumptions for positions that are being filled; Grady agreed.

A motion to approve the revised FY2026 budget was moved and seconded. Secretary Brown called the roll and the motion passed.

The board approved the revised budget; trustees asked administration to continue monitoring personnel assumptions and to report back on implementation and outcomes in follow-up materials to the board.