The University of Tennessee Health Science Center’s Advisory Board Friday unanimously approved a budget proposal for FY 2025 that includes an operating budget of $696.4 million, a 3% across-the-board state-funded pay raise for faculty and staff, and no increase in mandatory student fees
The budget proposal, which now goes to the UT Board of Trustees for consideration and approval, also includes the 2.9% across-the-board tuition increase approved by the Advisory Board in a special meeting March 22. The proposed tuition increase is well under the Tennessee Higher Education Commission’s recommended binding tuition rate ceiling of 5.5%. The recommended tuition rate for academic year 24-25 leaves tuition remaining less than most peer institutions in the region.
One piece of a long-range financial strategy to ensure a balanced budget for the university, it is expected to yield additional funding of between $750,000 and $1.2 million, depending on enrollment. Most of the funds realized from the tuition increase will go toward student support, including increased scholarships.
In presenting the proposal, Raaj Kurapati, AIFA, executive vice chancellor and chief operating officer, outlined four goals for the university’s budget strategy. They are to build transparency around finances, establish an engaging and collaborative budget process, balance the budget, and invest in the university’s future.
He said a new Planning and Budget Council (PBC), composed of representatives from across the university, recommended several actions to balance the budget, including a 3.5% internal budget realignment and implementation of operational efficiencies, along with the tuition increase.
Read more at our UTHSC news site.