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UT Board of Trustees Approves Budget and Sets Tuition for FY 2012

KNOXVILLE – The University of Tennessee Board of Trustees today approved a $1.861 billion budget for fiscal year 2012, reflecting a loss of stimulus funding, tuition increases at each campus and raises for faculty and staff for the first time in four years.

The state provided temporary stimulus funding for the prior two fiscal years to soften the reduction of state appropriations. For FY12, the University will receive $411.3 million in state appropriations, down 25 percent, or $138 million, from a year ago. Revenue from tuition fees is estimated at $488.4 million, marking the first time student fees have exceeded state appropriations.

Gov. Bill Haslam, attending the meeting as chair of the board, said higher education has been vulnerable to cuts in the state’s budget and all areas of the budget will be endangered while healthcare costs continue to increase.

“It’s a strong hope you won’t see those cuts in the future,” Haslam said.

The University has saved $45.8 million through efficiency measures based on more than 100 suggestions from employees statewide.

“We’re ready for this cliff. We have made adjustments,” UT President Joe DiPietro said. “Never is there a more important time for higher education and UT to be efficient and effective.”

The budget also included tuition increases for all campuses effective this fall:

The tuition increases differed for each campus to address specific needs and individual institution missions. Overall, the increases will help offset higher operating costs and the decline in state appropriations and enable the University to fund employee pay increases for the first time since FY08.

“It’s not popular to raise tuition, but if you look at our state appropriations, it’s the only way to maintain our quality,” DiPietro said. “We did not take this lightly.”

The University is supplementing the 1.6 percent employee pay increase authorized by the state. Each campus and institute has worked out additional compensation increases based on merit, equity and other factors for faculty and staff.

Here is a breakdown of salary increases:

The board began the meeting by honoring outgoing trustees Sumeet Vaikunth, a student from the UT Health Science Center; Karen Johnson, a faculty member from UTHSC, and Jan Simek, who served UT as interim president prior to DiPietro’s election. The board resolved to remove interim from Simek’s former title, making him UT’s 24th president, and named him president emeritus.

Trustees elected Don C. Stansberry, Jr., as vice chair of the board. Stansberry was first appointed to the board in 2002 to represent the fourth district of Tennessee and previously served as vice chair from 2004-2006. He is an attorney, business advisor and real estate developer based in Huntsville, Tenn.

The board also approved the appointment of Larry Arrington as chancellor of the Institute of Agriculture. Arrington is professor of agricultural education and communication at the University of Florida, where he has worked since 1981. The Institute of Agriculture provides instruction, research and public service through the UT College of Agricultural Sciences and Natural Resources; the UT College of Veterinary Medicine; UT AgResearch, including its system of 10 research and education centers; and UT Extension with offices in all 95 Tennessee counties.

In other action, the board approved:

The FY12 budget document can be viewed online, starting at page 20, at http://bot.tennessee.edu/docs/062211_boardbook.pdf.

To view the meeting’s full agenda and materials, go to http://bot.tennessee.edu/.

The full board meeting was webcast live and will be archived for later viewing. For a link to the webcasts, go to www.tennessee.edu.

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