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.
