The Finance and Administration Committee of the University of Tennessee System convened on July 1, 2025, to discuss the proposed operating budget for the fiscal year 2026. The meeting highlighted significant increases in state funding and the implications for tuition and fees across the university system.

A key point of discussion was the anticipated $58 million increase in state funding, representing over a 6% rise, with $46 million of that being recurring funds. This funding boost is attributed to a supportive state government, with committee members expressing gratitude towards the governor and legislature for their ongoing commitment to higher education. Over the past five years, the university system has seen a remarkable $300 million increase in recurring state funding, a 46% rise that few states can match.

The budget proposal includes detailed allocations for tuition and fees, with a projected overall increase of $91 million in tuition revenue. This increase is partly due to a projected enrollment growth of 4.5% and proposed adjustments in tuition rates. Notably, the Knoxville campus will not see a tuition increase, while other campuses, including Chattanooga, Martin, and Southern, will implement a 3% increase. The Health Science Center will see a 2% increase for its MD program, which was previously approved.

Committee members raised concerns about the cumulative costs of attending university, emphasizing the importance of considering housing and food expenses alongside tuition. They acknowledged the financial strain on families due to ongoing inflation and expressed a desire to keep tuition increases as low as possible. The discussion also touched on the UT Promise program, which allows Tennessee residents with family incomes under $75,000 to attend university tuition-free, benefiting approximately 1,200 students annually.

The committee emphasized the need for transparency in tuition costs and discussed the possibility of providing incoming students with a clear estimate of their total expenses over four years. This initiative aims to help families plan for the financial commitments of higher education.

In conclusion, the meeting underscored the University of Tennessee System's commitment to maintaining affordability and accessibility in higher education, despite rising costs. The anticipated state funding increase and strategic budget allocations reflect a proactive approach to supporting students and enhancing educational opportunities across the state. The committee will continue to monitor these developments and seek ways to mitigate financial burdens on students and their families.