(The Center Square) – An agreement between the state of Tennessee and Tennessee State University will help the institution overcome financial woes and “regain its legacy as one of our nation’s great, historic institutions of higher education,” a state official said.
The agreement allows the university to use $96 million in capital outlay funds for operations over the next three years. Tennessee State is using $33 million for an upgrade to the campus’ electrical grids and $22 million for new Food and Animal & Environmental Science buildings in the College of Agriculture, according to a news release from the university.
The money is part of $250 million received by the university from Tennessee in April 2022. The first $99 million is being used for deferred maintenance, according to the release.
The school has faced financial troubles over the past few years. An audit released in May included 15 findings, including a lack of “sufficient controls, oversight, or knowledge over several key areas in their accounting ledger and related systems.” But the audit covered the year ending June 30, 2023, when different leadership was in place.
Interim President Dwayne Tucker is working with a new Board of Trustees to get the university’s finances under control.
“This agreement provides TSU with the opportunity to solve its financial challenges and regain its legacy as one of our nation’s great, historic institutions of higher education,” said Tennessee Department of Finance and Administration Commissioner Jim Bryson. “With this agreement and the current leadership team, TSU is once again on the rise.”
Tucker thanked Bryson, Comptroller Jason Mumpower and other state officials, calling the agreement a “transformational opportunity.”
“It not only provides crucial cash flow to ensure the university’s financial sustainability but also allows us to invest in enriching the student experience and strengthening our capacity to attract both students and qualified employees,”
Mumpower said the state was committee to the university and its legacy.
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“We are encouraged by the progress TSU has made in recent months and remain committed to its long-term success and promising path forward,” Mumpower said. “I signed this agreement because I have confidence in TSU’s current leadership team and their ability to understand and navigate the institution’s challenges.”
The agreement is not the only step the university is taking to overcome its financial troubles. The board agreed to a 6% tuition increase last week to help with a $39 million budget shortfall, according to WZTV.