January 30, 2009
I want to thank and commend your chancellors and campus leaders for
their work during this budget crisis. At this time, I thought it would
be a good idea for you to hear from me as we go through this
unprecedented economic situation facing the University of Tennessee.
I know everyone is concerned about paying more to go to school, signing
up for classes and getting a quality education. We all share these
concerns, but be assured that we are working hard to come up with the
best solutions possible.
At the system level, we are overseeing the total budget for all campuses
and institutes. The Board of Trustees must approve any changes to
tuition, and that vote would not take place until the annual June
meeting in Knoxville. If approved, new fees would go into effect for
Fall 2009.
As President, I advocate for the University in Nashville, and I have
contacted our congressional delegation in Washington seeking financial
assistance.
The budget for the entire UT system is about $1.6 billion, which is made
up primarily of about 30 percent in state appropriations, 22 percent in
tuition and fees, 27 percent in grants and contracts and 10 percent in
auxiliaries like athletics, housing and parking.
For the fiscal year beginning July 1, 2009, we expect state funding to
be reduced by $66 million with the potential for $25 million more to be
cut if economic conditions worsen. Gov. Phil Bredesen will announce his
final budget numbers in his State of the State address in February.
Many of you probably know that the Tennessee Board of Regents, which
oversees public universities outside the UT System, is pursuing removing
the tuition cap, meaning full-time students would be charged per credit
hour. After some initial consideration, UT has decided to not take this
step now. Full-time UT students will continue to be charged a flat
tuition fee.
Because the budget reductions are so large, however, we have little
choice but to plan for increases in tuition. No decisions on the exact
amount have been made yet.
Chancellors and administrators have outlined the various ways they plan
to achieve their budget reductions. The plans, now turned in to the UT
System office, are being evaluated. Between now and mid-February, system
administrators will travel to each campus to meet with leaders and
review the proposals.
Many details of these plans will be presented to the Board of Trustees
at its winter meeting Feb. 26-27 in Memphis. This meeting will be
Webcast live, and you are encouraged to watch it online. A link to the
Webcast will be posted before the meeting at http://www.tennessee.edu/.
Today's economy presents challenges to all of us. We will have to make
sacrifices, but we are determined to position ourselves to be a stronger
University once this economic crisis is over.
Thank you,
John D. Petersen
