Governor's State of the State Address
January 29, 2008
To: All UT Faculty and Staff
From: President John Petersen
On Monday night, I was pleased to be a guest of Gov. Phil Bredesen at the capitol for the 2008 State of the State Address, when the Governor proposed what he characterized as a no-growth budget that targets program cuts to commit the majority of new dollars to education and job creation.
In a year when available resources are limited, the Governor's continued focus on educating Tennessee's young people, modernizing the economy and promoting healthier lifestyles is to be applauded. UT has a vital role to play in all of those areas. It is important to note that none of the Governor's proposed program cuts target higher education, and we will continue to work on our budget process toward goals of protecting the quality of our programs, meeting the needs of the state, and keeping fees as low as possible while sustaining and continuing the dramatic momentum achieved in recent years.
It is too soon to tell what impact the state budget will have on tuition, but we will work with the Governor and the General Assembly in the weeks ahead to be creative and innovative in maximizing resources.
We respect the Governor's position and recognize the challenge of making difficult decisions in the face of limited resources. It is particularly significant that a proposed salary increase - the Governor's acknowledgment of the importance of retaining good employees - is based on deriving funds from reductions in other budget areas.
While there were no proposed capital projects, capital maintenance recommendations are close to levels of the current budget year.
Other proposals relative to higher education or the University of Tennessee are outlined below. We will keep you informed as the budget process goes forward.
- $3.44 billion to higher education, or 12 percent of the proposed budget
- 2 percent pay raise for state employees to include higher education
- $5.6 million for year two funding of the Tennessee Biofuels Initiative, which received initial state funding of $40.7 million for the refinery and $5.1 for operating funds a year ago
- $1 million for UT Mouse Genome Consortium
- $3 million for Regional Biocontainment Laboratory equipment
- $5.3 million to increase retention of HOPE scholarships by adjusting the required GPA for scholarship recipients to 2.75
- $27 million toward need-based financial aid to fund 13,500 more Tennesseans who want to go to college
— John Petersen