The University of Tennessee System reported strong financial performance for the first three quarters of the fiscal year, ending March 31, 2025, highlighting significant revenue growth and a solid balance sheet during a recent Finance and Administration Committee meeting.

Total revenues increased by 7%, amounting to $205 million, primarily driven by an $89 million rise in gross tuition, which reflects an 8.8% increase year-over-year. The Knoxville campus led this growth with a $76 million increase, while Chattanooga, UT Martin, and the Health Science Center contributed smaller gains. Additionally, investment income rose by 13.5%, adding $16.4 million to the university's financial resources.

Operating expenses also saw an uptick, aligning with national inflation trends and the need to expand services for a growing student body. Notably, scholarships and fellowships increased by $55 million, or 11.8%, reflecting the university's commitment to supporting graduate and research assistants.

The university's balance sheet remains robust, with total assets of $7.6 billion against liabilities of $2.2 billion, resulting in a strong net position. Cash and cash equivalents rose by $147 million, indicating a healthy operating surplus. The university's liquidity, measured in days of cash on hand, improved across all campuses, with the total university averaging 267 days, surpassing the AAA median for public universities.

The committee also discussed recent debt issuance, including $176 million in bonds at a favorable interest rate of 4.32%, which will support ongoing construction projects, including significant renovations at the Knoxville campus.

Overall, the university system is positioned well for continued financial stability and growth, with expectations for a positive fiscal year ahead. The committee expressed optimism about the financial trends and the university's ability to meet the needs of its expanding student population.