May 20 Budget Update

May 20, 2008

To: All UT Faculty and Staff
From: President John Petersen 

In the past two weeks, our campuses and institutes individually have
been taking a strategic approach to planning their budgets so as to best
deal with the funding circumstances dictated by the state's
well-documented revenue shortfalls.

Each entity has taken a very positive and proactive stance in making
hard decisions so as to position its organization to minimize the
negative impact and to poise us strategically for important
opportunities going forward.

Because of the economic difficulties already faced by so many Tennessee
families including those of our students, we have committed to absorbing
a substantial portion of our increased costs. That means our
recommendation to the Board of Trustees for their approval in June will
be that we hold the line on a tuition increase and maintain the same
level of increase as last year - or 6 percent.

That certainly means making serious cuts and tough choices, but I am
confident this is the responsible position to take. Our chancellors and
other leadership are working to finalize the details and will be sharing
those in the days ahead.

I appreciate all the hard work and cooperation already given and still
to come from our chancellors and institute heads as they continue to
determine how their budgets are implemented. I also appreciate the
sacrifices necessitated and the positive attitude and commitment shown
to protecting the quality of our education and focusing on our

We will continue to keep you updated as information is available.

Thank you for all you do for the University of Tennessee.

— John Petersen