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TSU proposes 4.5% tuition/fee increase, details FY27 budget approach and voluntary separation savings
Summary
At the Finance Committee meeting, administration proposed a 4.5% tuition/fee increase that would yield roughly $1.9 million if approved, outlined conservative FY27 budget assumptions emphasizing cash‑flow, and reviewed a voluntary separation program that produced estimated FY26 payouts and projected F27 personnel savings.
TSU’s administration presented a proposed 4.5% tuition and fee increase and the FY27 proposed budget at the Finance Committee on May 14, saying the move is intended to shore up student services and help the university begin to rebuild modest reserves rather than eliminate structural deficits.
Why it matters: Trustees asked how increases would affect affordability, retention and the most price‑sensitive cohorts. The tuition proposal and the voluntary separation plan are central elements of the FY27 budget strategy.
CFO April Robinson said the administration proposes an overall 4.5% increase in tuition and fees, including roughly $300 in mandatory program/service fees for a full‑time (15‑hour) student and a total annual per‑student increase of about $425 for the in‑state undergraduate population; the administration proposes holding full‑freight out‑of‑state tuition flat. Robinson emphasized that "this tuition increase is not meant to solve our structural deficit," and described the administration’s intent to place the additional revenue into reserves or to fund targeted student‑facing investments included in the materials.
On personnel, Robinson described the voluntary separation plan (VSP) offered to faculty: of roughly 239 eligible faculty, about 40 accepted the buyout, producing an estimated FY26 payout of approximately $4.3 million and projected personnel savings that the budget counts at roughly $4.8 million for FY27. Administration also noted a remaining gap relative to earlier pro forma assumptions (about $7.4 million) that it plans to manage through a mix of levers including revenue opportunities and operational reductions.
Trustees questioned the impact on students, urging analysis of elasticity and retention risks; administrators noted some supporting data — for example, the average balances owed by students who were purged historically were near $5,000 in each term, and a foundation fund was used to support a small number of students in the most recent purge. Administration also reported recruiting gains: early confirmed freshman counts were rising and roughly three‑quarters of the confirmed cohort had been packaged for aid.
Next steps: The board will see a tuition/fee action at the upcoming board meeting, and trustees requested more sensitivity analysis on enrollment elasticity and a clear communications plan for students explaining how any increase would be used.
