Tennessee State University (TSU) has received a $43 million emergency infusion into its operating budget to keep the institution afloat following severe financial difficulties. The funds, approved by state officials in November, will help the university make payroll and cover operating expenses for the remainder of the year.
The financial crisis has been exacerbated by a series of cutbacks, including the layoff of 114 employees and reductions in spending. TSU interim President Ronald Johnson, who took office in July, described the lack of financial oversight under the previous administration as “beyond troubling,” saying it left the university in a “crippled position.”
In a State Building Commission meeting on Thursday, Johnson also revealed that TSU’s former Board of Trustees had signed a contract agreeing to pay former President Glenda Glover at least $800,000 to serve as an advisor after her resignation in June. House Speaker Cameron Sexton raised concerns about the payment given the ongoing financial turmoil, but Johnson stated he was uncertain if the contract could be canceled.
The financial challenges at TSU were compounded by a decline in student enrollment, which fell from 8,026 in fall 2022 to 7,254 in fall 2023, putting further strain on the university’s budget. A large portion of the university’s recent expenses stemmed from an unsustainable scholarship program funded by a $37 million federal grant, which ran out after the 2022-2023 academic year. As a result, many students left the institution or accrued debt, further depleting the university’s resources.
The state has authorized the use of $32 million from a campus construction fund to cover the immediate shortfall, along with an $11 million advance. The commission has also called for a comprehensive financial recovery plan and urged the release of administrators connected to Glover’s tenure. Additionally, TSU is being advised to sell its Avon Williams Campus, a valuable property in downtown Nashville, to help alleviate the financial strain.
Despite these interventions, Johnson warned that it could take three to four years for TSU to recover fully, particularly if it continues to operate with a reduced student body. The financial troubles have been decades in the making, with the university historically underfunded by both state and federal sources. A recent audit revealed that TSU had been shorted by up to $2.1 billion over the past 30 years.
TSU is now working on a separate dormitory project and is focused on stabilizing its finances before moving forward with campus improvements.