ETSU committee approves staff directive to prepare FY27 tuition-and-fee action item after presentation of 2.32%–4.84% range

A special-call meeting of East Tennessee State University's Finance and Administration Committee heard on Thursday that rising salary, insurance and utility costs could require roughly $7.8 million to maintain FY26 purchasing power, and reviewed a proposed undergraduate tuition-and-mandatory-fee range for FY27 that staff said would remain below the Tennessee public-university average.

Miss Graham, presenting budget context to the committee, said the meeting was intended to present a range — not a final rate — and to ensure the board could respond after the Tennessee Higher Education Commission (THEC) issues a binding tuition limit in May. “This approach allows the committee to begin its discussion with full visibility into the financial environment while recognizing that the state budget and the final Tennessee Higher Education Commission binding tuition range have not yet been established,” she said.

Why it matters: Staff said inflationary pressures specific to higher education — where salaries and benefits make up a large share of costs — continue to outpace general inflation. Miss Graham outlined projected cost drivers: a governor-proposed 1.5% salary pool (about $2.7 million if applied across the university), approximately $2.5 million in expected insurance increases, and utility increases forecast at 4%–6%. Taken together, staff said ETSU would need roughly $7.8 million to preserve current purchasing power into FY27.

What staff proposed: Miss Graham presented a recommended undergraduate tuition range of approximately 2.32% at the minimum and 4.84% at the maximum for full-time in-state students. She said the current per-term tuition of $4,401 would move to about $4,503 (minimum) or $4,614 (maximum), producing estimated additional revenue of roughly $2.7 million at the low end and $5.6 million at the high end depending on enrollment mix. Mandatory fees were projected to rise from $1,048 per semester to a range of $1,080–$1,096, yielding an annual student cost increase estimated between $268 and $522 depending on the final choice in the range.

Board questions and constraints: Trustees asked how THEC's upcoming binding range would limit the board. Staff confirmed the university must remain within THEC's upward threshold once THEC finalizes its binding limit. Dr. Nolan explained the board “has the ability to set tuition at any level between 0 and what would be the upward threshold of the THEC range,” but cannot exceed THEC’s upward limit.

Process and next steps: Committee members were told the committee action would direct staff to prepare final tuition-and-mandatory-fee action items that comply with the Tennessee Tuition Transparency and Accountability Act and provide 30 days of public comment. The committee then moved, seconded and carried a motion directing staff to produce the required final action items for consideration by the finance committee and the full board at the May 21, 2026 meeting. The roll-call process was used to record participation as required for trustees participating remotely under Tennessee code 8 dash 4 4 dash 1 0 8 section c 3.

The committee discussion also emphasized operational efficiencies such as vacancy management and a possible supplemental salary pool if enrollment growth produces additional revenue. Staff noted ETSU’s total tuition and mandatory fees for FY26 ($10,994) remain below the state public-university average ($11,126), and said the proposed range was designed to balance affordability with the need to address structural cost pressures.

The committee chair adjourned the meeting after a brief memorial for the late Dr. Paul Stanton, whose service to regional health-science infrastructure was acknowledged by a board member. The full board will review the final tuition-and-fees action items at its May 21, 2026 meeting.