TSU trustees advance new policy on out‑of‑state tuition and approve 4.5% in‑state tuition increase

Tennessee State University’s finance committee and full board on June 23 moved to adopt a new policy governing the use of revenue from out‑of‑state undergraduate tuition and approved a 4.5% tuition and mandatory fee increase for in‑state undergraduates, a change the university estimates will add roughly $425 to a full‑time student’s annual bill.

CFO April Robinson told trustees the new policy—required to be in place July 1 under recently passed state legislation—sets permitted uses for out‑of‑state undergraduate tuition and fee revenue including "academic instruction, academic support services, student services and student success initiatives, faculty and staff compensation and benefits, financial aid and scholarships, facilities, infrastructure and technology, and then any identified strategic initiatives." Robinson said the policy is undergraduate‑only and was developed in consultation with LGI CFOs; she told trustees the team compared policies at Middle Tennessee State University, University of Memphis and the University of Tennessee and that the TSU draft was "fit for purpose" for TSU.

Trustees pressed for accountability. Trustee Qualls said much of TSU’s tuition revenue comes from out‑of‑state undergraduates and asked that the board require annual reporting on how those funds are used and whether they are routed through the finance committee for review. Robinson said the university can report actual uses on an annual basis and that the policy’s procedures will tie use reporting to the annual budgeting process.

On tuition, Robinson presented the recommended increase as part of the FY26–27 planning package, saying the change is intended to cover inflationary operating costs and targeted investments—repaving and residence‑hall work, improvements to the financial aid office, and campus beautification supported in part by Title III dollars. She said the $425 figure represents a 4.5% increase and includes a $300 program/service fee component; on a per‑semester basis she described the added cost as under $250.

Trustees discussed student‑level impacts. One trustee asked whether the combination of last year’s roughly 6% increase with this year’s increase could place marginal students at risk. Robinson said board materials include breakdowns by class and analyses of student balances and foundation recipients, and she said the university expects only a small number of students would face immediate retention pressure from the increment.

The finance committee voted to recommend both the policy and the tuition increase; the full board later took up both items and approved the policy and the tuition/fee increase on formal roll calls. Several trustees registered questions about the magnitude of out‑of‑state revenue (Trustee Qualls flagged a measure near 50%) and asked staff to provide clearer year‑end reporting showing the amounts collected and how those dollars were applied.

The board-approved policy and tuition action will be reflected in the FY26–27 budget materials the administration will finalize for implementation and for presentation to state reviewers.