Tennessee State University Requests Financial Intervention to Avoid $46 Million Deficit

At a recent Tennessee State University board of trustees meeting, administrators informed board members that the university was heading towards a $46 million deficit by the end of the current academic year on June 30, 2025.

The news follows an audit conducted earlier this year that alleged financial mismanagement by Tennessee State University leaders, resulting in the state replacing the HBCU’s entire board of trustees. In addition to leadership challenges, the university has remained historically underfunded. A state legislative committee previously found that Tennessee State is entitled to between $150 million and $544 million in land grant allocations.

This year, undergraduate enrollment at Tennessee State University dropped by a staggering 23.5 percent, while graduate enrollment decreased by over 12 percent. Most notably, enrollment in first-year programs dropped by over 50 percent, causing an estimated $28 million reduction in expected revenues.

These financial shortfalls required Tennessee State University to request assistance from the Tennessee comptroller to make its November payroll.

To reverse these financial challenges, leaders at Tennessee State University announced a plan to repurpose prior federal pandemic relief funds and secure outstanding debts with Saudi Arabia. Additionally, the HBCU has laid off over 100 staff members and cut travel expenses. If the board of trustees approves the new action plan, administrators estimate Tennessee State University will end the academic year with roughly $3 million in cash.

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4 COMMENTS

  1. If the State Legislature says it owes TSU at $150 million, why doesn’t the state pay up? The minimum that the state owes the institution is more than three times its projected deficit. Please, someone help me to understand this.

  2. The state of Tennessee owes TSU $ billion dollars according to figures from the federal government! The state should pay with interest the amount withheld from TSU.

  3. Tennessee State University is a great university.
    It is a HBCU in need of funds. Please help TSU get back to the good works God has already plan for her.

    TSU need help and there are a lot of folks out there giving money to Universities overflowing with money.
    You can make a private donation now.

    We need to help students have an opportunity to be successful so they can help somebody else in their community.

    Be generous this Holiday season.
    I pray TSU recovers financial
    TSU students need our help now. It not too late to give.
    Blessings come from giving…
    Happy Holidays!!!

    Thank You.

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