In a special meeting, the University of Tennessee Health Science Center’s Advisory Board last month unanimously approved a recommendation to be advanced to the UT Board of Trustees for a 2.9 percent across-the-board tuition increase for Fiscal Year 2024-25.
The proposal, which must be approved by the UT Board of Trustees, is part of an overall judicious and long-range financial strategy presented by Raaj Kurapati, AIFA, executive vice chancellor and chief operating officer, to ease a base budget deficit, support unrestricted scholarships, and help ensure a balanced budget for the university.
Kurapati, who joined the university last fall, said the tuition increase, is expected to yield additional funding of between $750,000 and $1.2 million, depending on fall enrollment.
Chancellor Peter Buckley, MD, said the tuition proposal was shared with students and faculty leadership prior to the presentation. All Health Science Center deans were also in support, he added.
“I want to be sure every possible avenue to keep the cost down is being addressed,” said board chair Phil Wenk, DDS. Despite any increase, UT Health Science Center’s tuition would remain less than most peer institutions in the region.
Kurapati pointed out 60 percent of the university’s $361.5 million unrestricted operating revenue comes from state appropriation and 20 percent from tuition and fees. While the state support is foundational and much appreciated, the state’s funding formula does not accurately reflect the considerably higher costs of operating graduate health science programs, Dr. Wenk said.
Kurapati told the board he has formed a Planning and Budget Council to address the university’s budgetary issues and move toward a balanced budget. Additionally, he has set expectations across the university for the need for budget discipline and noted the university will work with the UT System, the Tennessee Higher Education Commission, and the state to seek a funding formula encompassing recurring annual support that better meets annual operating cost increases.
Medical student Corinne Gibson, the student representative on the board, urged the university leadership to examine the various fees charged to students and exercise greater transparency about them.
“Your point is not only a great one, but one we need to do, and we will do,” Chancellor Buckley said.
“We will work with the deans to capture all the fees and will share them in a succinct and transparent manner prior to the new academic year,” Kurapati said.
Kurapati also said $1 million of the university’s operating budget will be strategically allocated for unrestricted scholarships and leveraged to raise philanthropic dollars to support access and engagement efforts across the university. Funds in excess of that will address the budget gap, he said. UT Health Science Center exceeded prior year philanthropic expectations in raising $29.7 million last year, and funding new student scholarships is a priority going forward.
Calling for the vote, Dr. Wenk said he appreciated the work being done to take a more integrated approach to the university’s budget.
While finances were a focus of the board meeting, Chancellor Buckley opened the meeting with several reminders of UT Health Science Center’s robust community engagement, including the recent announcement of the launch of the UTHSC Health Hub: Soulsville. UT Health Science Center, the Soulsville Foundation and Soulsville community, and the Kemmons Wilson Family Foundation are partnering to bring primary health care to the historic Soulsville neighborhood in Memphis.
Additionally, Bruce Keisling, PhD, executive director of the UTHSC Center on Developmental Disabilities, detailed this nationally renowned center’s 60 years of outstanding service to families in Memphis and Tennessee. He spoke about the clinical outreach to support vulnerable communities and how this work also provides formative experiences for Health Sciences students, who go on to pursue careers of servant leadership as clinicians in their own communities. This work is an outstanding example of the new vision for UT Health Science Center outlined in the 2023-2028 Strategic Plan: Healthy Tennesseans. Thriving Communities.
“The center is a showcase of two strategic plan pillars: community engagement and education,” he said.
The full advisory board special meeting is available to view on the UT Health Science Center Advisory Board webpage.