Courtesy of Tennessee State University
At a recent meeting of Tennessee State University’s board of trustees, administrators informed board members that the university is headed for a $46 million deficit by the end of the current academic year on June 30, 2025.
The news follows an investigation into financial mismanagement by Tennessee State University leaders earlier this year that resulted in the state replacing the HBCU’s entire board of trustees. In addition to leadership challenges, the university has historically been underfunded. A state legislative committee previously determined that Tennessee was entitled to between $150 million and $544 million in land grants.
This year, undergraduate enrollment at Tennessee State University is down a staggering 23.5 percent, and graduate enrollment is down more than 12 percent. Most notably, enrollment in first-year programs dropped by more than 50 percent, leading to a nearly $28 million drop in expected revenues.
These financial shortfalls prompted Tennessee State University to seek help from the Tennessee comptroller to pay the November salary.
To address these financial challenges, Tennessee State University leaders announced a plan to repurpose previous federal pandemic relief funds and settle outstanding debt with Saudi Arabia. In addition, the HBCU has laid off more than 100 employees and reduced travel expenses. If the board of trustees approves the new operating plan, administrators estimate that Tennessee State University will end the school year with about $3 million in cash.
