Higher Education Commission moves to raise authorization fees for private/postsecondary institutions
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Summary
The Tennessee Higher Education Commission told the committee it seeks to raise authorization and expedited-authorization fees to replenish a depleted fund after a 2016 restructuring. THEC said institutions were consulted and the division’s reserves have dropped from roughly $2.7 million to about $576,000.
The Tennessee Higher Education Commission asked the Joint Government Operations Committee on March 31 to approve rule changes that raise the fee schedule for regulated postsecondary institutions. Lou Hanneman and Dr. Stephanie Ballard Chase told committee members the division of postsecondary authorization has operated without a state appropriation since its 2016 overhaul and its reserves have been drawn down over several years.
Hanneman said the 2016 change switched the division from a tuition‑based fee model to flat fees and reduced staff; the result was about a 60% drop in fee revenue and reserves are now approximately $576,000, from a starting balance of about $2.7 million. THEC staff said they proactively contacted impacted institutions (about 266) and offered detailed rationale; institutions that responded did not oppose the increase and one representative at the rulemaking hearing supported raising the optional expedited authorization fee.
Committee members asked whether the fee changes would affect the cost of education or financial aid: THEC staff replied the regulated institutions in question are not public institutions and do not receive state funding; the fees pay for the division’s regulatory work and are unlikely to require an overhaul of institutional budgets. The committee moved the rule forward with a positive recommendation (House voice vote; Senate roll call recorded as five ayes, one no on the motion to recommend).