Budget Update

Tennessee State University will be impacted as follows by the budget recommendations that Governor Bredesen presented to the General Assembly:

· 6% APPROPRIATION REDUCTION
The recommendation for the University’s base budget reflects a reduction of $2,572,200.  (The State will use non-recurring funds to offset most, but not all, of this amount next fiscal year only.)

· 3% ADDITIONAL FUNDING REDUCTION
This additional reduction would be implemented only if recommended tax legislation is not enacted into law, per page A-42 of the Budget Document.

· REDUCTION IN FORCE
The budget reflects the elimination of 456 vacant State positions as well as 1,363 filled positions.  Of this 1,819 total (which is approximately 2% of the State’s workforce), 1,425 positions will be eliminated in the spring and 394 may be held for up to two years.   Tennessee State University and other higher education institutions are not included in these numbers, but position reductions will likely be necessary.

· ONE-TIME BONUS
A one-time 3% bonus has been recommended for University employees next fiscal year.

· TCRS FUNDING
Additional funding has been recommended to meet the University’s increased contribution requirement to the Tennessee Consolidated Retirement System (TCRS).

· 401(K) MATCH
The current 401(k) match of $50 per month for University employees is recommended for continuation.

· CAPITAL PROJECTS
A total of $2,500,000 has been recommended for the fume hoods in Boswell (the Chemistry Building).  The University may also receive some portion of the $1.1 million expected to be allocated to the Tennessee Board of Regents system for American with Disabilities Act compliance.  The budget recommends no construction projects.  (The University was to be funded $16,580,000 for its Library Addition and Renovation Project, of which $930,000 in design work was estimated to begin next fiscal year.  The Library will therefore remain at #14 on the State’s list of construction priorities.)

If you have any questions, please feel free to contact the Budget and Fiscal Planning Office at 963-5817.