TSU board committee approves FY2026 revised budget after $35M state payment and enrollment gains

The Tennessee State University finance committee on Nov. 20 approved a revised FY2026 institutional budget that reduces the projected operating deficit substantially after new state funding and improved tuition revenue.

Jim Grady of Alvarez and Marsal said the revised budget reflects a roughly $45 million increase in revenues compared with the proposed budget, driven primarily by a $35 million appropriation under a memoranda of understanding (MOU) and about $6 million from better‑than‑expected tuition. "That deficit for the proposed budget was about ... almost $39,000,000," Grady said, and the revised submission shows a net operating deficit of about $1,800,000.

On the expense side, Grady said personnel costs worsened by about $6.1 million relative to projections, with about $4 million tied to salary and benefit increases for positions that were vacant when the proposed budget was prepared but subsequently filled at higher market rates. Grady also identified other personnel changes (temporary faculty benefits, recruiting investments and two internal audit positions) and non‑personnel increases including a TBR contract (~$850,000), insurance and technology costs.

Trustees asked whether staff had confidence in the revenue and expense assumptions and whether additional adjustments were likely; Grady said staff reviewed disbursements and department budgets and expects some built‑in vacancy factors to reduce actual expenses. A motion to adopt the revised budget was moved and seconded and carried on roll call; Secretary Brown confirmed votes in favor by Chair Winton, Trustee Traver, Trustee Townes and Trustee Norfleet (who joined by Zoom).