UT System committee hears 10.2% revenue growth, approves amended FY26 operating budget

The University of Tennessee System Finance & Administration Committee on February 1 heard a financial update showing strong year‑to‑date revenue growth and approved an amended FY26 operating budget.

Treasurer Luke Viburn told trustees total revenues for the first six months of fiscal 2026 "grew to $246,000,000 or 10.2% year over year," driven primarily by tuition and fees and by investment income. He said investment income for the period was $192,000,000 and that the consolidated endowment pool had positive returns and new gifts. "Our balance sheet remains very healthy from a liquidity and long term leverage perspective," Viburn said.

Viburn noted expenses rose more slowly than revenues, with salaries and benefits up about 7% (roughly a $75.7 million increase) and scholarships and fellowships increasing by $34,000,000 (12%). He said the system is seeing a 4.4% increase in student enrollment year over year and that higher scholarship costs are trending with that enrollment shift.

Following the presentation, Associate Vice President Jennifer Easley summarized the system's revised FY26 operating budget, which shows systemwide revenues of approximately $3.77 billion and 15,708 budgeted positions. The committee moved, seconded and approved the amended operating budget by voice vote.

Why it matters: trustees said the figures reflect improving enrollment and investment performance that have strengthened the system's liquidity. Committee members pressed staff about pension and OPEB reporting and about how per‑student costs are changing once scholarships and tuition increases are accounted for.

Next steps: Easley and finance staff will continue campus‑level reporting required by the new reserves policy and provide campus schedules and supporting detail when requested by trustees.