Tennessee State University's turnaround plan calls for more cost-cutting, layoffs
Tennessee State University on Wednesday unveiled a financial recovery plan that would call for up to $37 million in additional cost-cutting, including more layoffs.
Why it matters: Interim president Dwayne Tucker told a state panel that those cuts would help put the historically Black college on solid footing after many years of financial tumult. The panel was broadly supportive.
Catch up quick: TSU nearly ran out of money last year, and the state had to provide millions in emergency funding to keep the doors open.
The State Building Commission, which includes top lawmakers and other leaders, pressed the university to take drastic action to shore up long-term finances.
Zoom in: The SBC's meetings with TSU have been tense for months. Commission members have blasted former leaders and recommended major land sales to make ends meet.
Wednesday's meeting might have marked a turning point. There were no such demands, and members praised Tucker for the work he's done since taking charge in December.
The latest: In the meeting, Tucker and his team presented his five-year turnaround plan, which includes capping scholarships for incoming students, restructuring faculty workloads to improve productivity, and making up to $13 million in staff cuts.
"Lives will be impacted from this," financial consultant Jim Grady said.
Zoom out: Tucker also wants lawmakers to reclassify a large pot of capital funding meant for maintenance and construction so that TSU can instead use that money for day-to-day operating expenses.
Flashback: In 2022, the state gave TSU $250 million for capital projects in recognition of historic underfunding. More than $154 million of that total remains unspent.
Tucker and his team said shifting the remainder toward operating costs would help keep the lights on while TSU steadies itself.
What's next: House Speaker Cameron Sexton, who serves on the commission, indicated he would be willing to support that change in the legislature as long as TSU agreed to hit progress benchmarks as school officials tapped into those funds.
The big picture: Once TSU has regained financial stability, Tucker's long-term plan would include revisiting the underfunding conversation.
A state analysis found TSU had been underfunded up to $544 million for food and agriculture research.
TSU leaders said that after the initial infusion of $250 million in 2022, an additional $294 million could help bring the university to new heights.
What they're saying: Tennessee comptroller Jason Mumpower, who has previously criticized TSU leadership, was complimentary after Tucker's presentation.
"I have great appreciation for the work you've done in the short time you've been there," Mumpower told Tucker. "It's remarkable what can happen when competent leadership is finally in place."
Go deeper
TSU board taps new interim president, says predecessor insulted students
Inside Tennessee State University's comeback effort
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