KNOXVILLE — The University of Tennessee Board of Trustees today approved a $1.8 billion budget for fiscal year 2010 that includes one-time federal stimulus funding and increases tuition at every campus.
Trustees at the board’s annual meeting in Knoxville also approved Acting UT President Jan Simek’s plans for an initial phase of reorganization of the UT System administrative structure.
The University has been preparing for a $65.6 million cut in state appropriations, and that cut is reflected in the FY 2010 budget, which goes into effect July 1.
However, the federal American Recovery and Reinvestment Act of 2009 (ARRA) provides funding for states to allocate to education. UT is slated to receive $92 million in total federal stimulus and state stabilization funds for FY 2010. Total state appropriations are projected to be $514 million, slightly more than a year ago. Similar funding is planned for next year, but it will not be available for FY 2012.
“At the end of this period, UT will be a different university than it is now. We will be leaner and more efficient,” Simek said.
“We are not saved. We recognize that,” he added. “There are difficult choices in front of us. There are difficult choices we have already made.”
Uses for the one-time stimulus funds include retaining lecturers and adjunct faculty, upgrading technology in classrooms, maintaining facilities and undertaking energy efficiency projects.
About 500 jobs have been targeted to be eliminated systemwide in the next two years. About 300 of those jobs are currently filled. Those positions will be shifted to stimulus funding in order to keep those affected employees at the University for up to two years before their positions are eliminated. Targeted positions at the System level will be moved to other non-state funding sources.
During the next two years, the University will provide assistance to find other employment inside and outside UT, Simek said.
UT Knoxville will receive the largest portion of the stimulus funding at $48.3 million; the UT Health Science Center will receive $15.5 million; UT Chattanooga, $11.5 million; UT Martin, $8.5 million; Institute of Agriculture, $7.3 million; Space Institute, $1 million; and Institute for Public Service, $780,000.
The board also approved recommendations to increase tuition. The University is projected to receive $392 million in revenue from tuition and fees, an increase of about $30 million from last year.
Tuition increases (not including other fees) vary by campus:
- UT Knoxville — 9 percent, or $490 for in-state undergraduate and $564 graduate
- UT Chattanooga — 7 percent, or $296 for in-state undergraduate and $354 for graduate
- UT Martin — 7 percent, or $308 for in-state undergraduate and $368 for graduate
- UT Space Institute — 9 percent, or $564 for in-state graduate
- UT Health Science Center — 10 percent with amounts varying for each discipline
- Veterinary Medicine — 20 percent, or $2,908 for in-state
For a breakdown of the funding and the overall budget, click here.
UT’s FY 2010 budget was developed based on the amount of state appropriations allotted in Gov. Phil Bredesen’s budget proposal for the state of Tennessee. If the final version of the budget passed by the Legislature alters the state appropriations for the University, the board has authorized the University to modify its budget within available resources.
Simek unveiled an initial phase of his reorganization plan on June 1 at the meeting of the Committee on Effectiveness and Efficiency for the Future.
The reorganization is intended to help clarify the role of the System and its appropriate functions. The changes are effective July 1.
Simek advocated having a “collective conversation” about the functions performed by the System and its relationship to the campuses. The board will further discuss the System administration and functions at a workshop in August.
“How much is in the System is for all of us to decide,” Simek told the board.
The functions of two vice presidents’ offices will be eliminated, redistributed within the System administration or delegated to the campuses. Those include:
- Science and Technology — Created to strengthen the UT-Oak Ridge National Laboratory partnership, this position has successfully fulfilled its purpose.
- Strategic Planning and Operations –- Strategic planning functions will shift to Academic Affairs while operations will shift to the campuses.
In addition, the title of vice president will be dropped from five positions:
- Chief Human Resources Officer
- General Counsel and Secretary
- Chief Information Officer (The current officer was hired without the vice president title.)
- UT Health Science Center Chancellor (Title had included Vice President for Health Affairs)
Ongoing evaluations will study the functions of the Institute for Public Service and the Office of Equity and Diversity, and the role of the System in overseeing athletics at UT Knoxville.
In other business, the board approved:
Extension of a differential tuition rate program at UTC for undergraduate students from contiguous out-of-state counties for one year. A similar two-year pilot program was approved for graduate students in business and education conditioned on the president’s determination that no additional costs would be incurred and that the programs meet criteria related to quality. The board also asked the president to work with the UTC administration to examine other graduate programs that could be included.
- A change in bylaws to allow more than three regular meetings a year.
- Campus strategic plans and proposed revisions of the mission statements for the Health Science Center and the Institute of Agriculture. To view details of the plans click here.
- Recommendations for program consolidation and discontinuance. UT Martin proposed six consolidations, and the UT Health Science Center proposed two consolidations. UT Knoxville proposed discontinuing the dance education minor, master’s in planning and master’s in safety education, and UT Martin proposed discontinuing a bachelor’s in health sciences.
- Programs of study leading to a bachelor’s degree in civil engineering and a bachelor’s degree in chemical engineering at UTC.
- Revision of undergraduate admission requirements at UTC that raises the minimum GPA from 2.0 to 2.3 and the minimum ACT score from 17 to 18 for first-time freshmen.
- Pilot program for a new rating scale for faculty annual performance reviews at UT Knoxville, the Institute of Agriculture and the Space Institute.
- Tenure recommendations.
- Sale of the Buford Ellington 4-H Center in Milan. The facilities need extensive renovations. Youth attending summer camp at the center will have the opportunity to attend other 4-H centers in the state with travel assistance provided.