TSU reaches agreement to reallocate $96 million for university operations

Tennessee State University has reached an agreement with the state of Tennessee that allows the university to reallocate $96 million to support its operational needs over the next three years.

The funds — which were previously allocated for deferred maintenance — make up a portion of the $250 million that the state allocated to TSU in April 2022 to make infrastructure upgrades and capital improvements. The first $99 million is currently going towards deferred maintenance, while $151 million is still available for use at TSU. Another $55 million will go towards key projects, including $33 million for upgrading campus electrical grids and $22 million to fund the new Food and Animal & Environmental Science buildings in the College of Agriculture.

During Friday’s TSU Board of Trustees meeting, Interim President Dwayne Tucker mentioned that the university and the state were close to coming to an agreement and he believed the terms were fair and reasonable for the university. When the agreement was finalized on Tuesday, he thanked state officials for providing TSU with an opportunity for transformation.

“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,” he said.

State Comptroller Jason Mumpower noted that investing in education is investing in Tennessee’s future. He stressed the state’s commitment to TSU and highlighted the university’s recent progress and agricultural innovation.

“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,” he said.

Last year, Tennessee lawmakers voted to vacate TSU’s Board of Trustees and Gov. Bill Lee appointed new trustees to the board. That change was made after some lawmakers criticized financial management at the school. The federal government has found that TSU has been under-funded by the state for decades. 

Board of Trustees Chair Dakasha Winton said that the state’s support to reallocate these funds highlights the university’s commitment to provide a top-tier education.

“These vital improvements will modernize the campus infrastructure and enhance the college experience for today’s students and for future generations of Tigers,” she said.