Chairman Charles DeCarlo convened the East Tennessee State University (ETSU) Finance and Administration Committee and the committee approved several budget-related measures proposed by university staff, including a proposed 4.98% increase in total undergraduate tuition and mandatory fees for the 2025–26 academic year, adjustments to a set of course fees, a 2% tuition increase for the Gatton College of Pharmacy, continuation of a fixed-price online master’s tuition model, a new undergraduate tuition rate for students using Department of Defense tuition assistance, and a 2.3% salary pool pending confirmation of state funding.

The committee heard the package from Christy Grant, who presented ETSU’s recommended tuition, mandatory fees and preliminary budgets. Grant said the administration was proposing “a 4.98% increase in total tuition and mandatory fees for all classes of undergraduate students on the main campus,” and detailed that the proposal represents roughly a $213 per semester tuition increase and $48 per semester in mandatory fees for a full‑time undergraduate student. Grant also said the increase was intended in part to cover ETSU’s portion of a proposed salary pool and other inflationary costs and noted that the Tennessee Higher Education Commission had approved a 0%–6.5% tuition-and-fee range at its March meeting.

Why it matters: The committee’s approvals shape the revenue base that ETSU will use to fund a proposed fiscal‑year salary pool, rising insurance and benefit costs, scholarship scaling tied to tuition increases and other campus priorities. The full Board of Trustees will consider final approval of tuition and mandatory fees at its May 23 meeting, and state appropriations that affect the salary pool remain pending action by the General Assembly.

Tuition and mandatory fees
Christy Grant said the administration’s proposal is built on state funding assumptions provided by the Tennessee Higher Education Commission and the governor’s proposed budget. Grant said the administration’s planning assumes flat enrollment and that, “assuming flat enrollment, this should result in an increase in revenue of $5,600,000,” which would help fund ETSU’s portion of the salary pool as well as rising insurance and scholarship costs. After discussion, the committee voted to approve the proposed tuition and mandatory‑fee increases; the committee’s approval will be transmitted to the full board for final action at the board meeting on May 23.

Non‑mandatory (course) fees
The committee approved several non‑mandatory course fee changes proposed by the College of Arts and Sciences: a brewing and distillation materials fee increase from $10 to $50 per credit hour; a theater and dance materials fee increase from $10 to $35 per credit hour (an error on the agenda had listed $50, Grant said); a music applied lessons fee changed from $200 per two‑credit course to $400 per one‑credit hour (revenue neutral because credit hours changed); and an ensemble fee converted from $10 per credit hour to $50 per course, with an estimated additional revenue of about $3,480. Trustees discussed the potential per‑student impact for theater majors and were told program‑level estimates would be provided to the committee after the meeting.

Gatton College of Pharmacy tuition
The committee approved a 2% tuition increase for Gatton College of Pharmacy in fiscal year 2026. Grant said the college has held rates low in recent years because of a historic state appropriation and will rely on reserves and expense reductions while pursuing additional state assistance. Grant told trustees the college expects increased tuition revenue driven by higher enrollment.

Online master’s in criminal justice and criminology (fixed‑price model)
The committee approved continuation of a 3‑year fixed‑price tuition model for new cohorts in the fully online master’s in criminal justice and criminology. Grant said the proposed rate for new cohorts is $618 per credit hour (comprised of a $535 tuition component, a $33 program fee and a $50 online fee) for the three next cohorts to aid recruitment and program growth; committee members were told current enrollment in that program is in the 30s.

Military tuition assistance policy
Colonel Bishop presented a motion to set an undergraduate tuition rate for students using Department of Defense (DOD) tuition assistance (TA) at $250 per credit hour—the DOD TA cap—and to have subordinate colleges waive course fees for those students. Bishop said TA is the primary education benefit used by active‑duty service members while in uniform and emphasized that matching the $250 cap would make ETSU more competitive for that population. Bishop also said university analysis, using a conservative enrollment assumption of 80 TA users taking 15 credit hours per year, showed a potential net revenue gain to ETSU of about $300,000. Trustees approved a three‑year implementation of the policy so the university can return to the board to evaluate outcomes after the initial period.

Salary pool and preliminary budgets
Grant presented the administration’s proposed 2.3% salary pool for FY26 and a preliminary main campus budget that incorporates the tuition and fee changes and the governor’s proposed state appropriations. Grant said a 2.3% across‑the‑board pool would cost about $4,000,000; according to the governor’s proposed budget, the state portion would be approximately $2,200,000, leaving roughly $1,800,000 to come from other institutional sources or efficiencies. The committee voted to approve the salary‑pool proposal as presented; trustees asked for final distribution plans to be held until the state budget is finalized and fall enrollment is confirmed. Grant also walked trustees through high‑level preliminary budgets for the Quillen College of Medicine, Family Medicine and the College of Pharmacy, describing revenue increases tied to state appropriations, tuition and grants and noting some position changes and projected expense increases largely driven by personnel costs.

Votes at a glance
- Necessity of remote participation (to hold the meeting electronically under Tennessee Code): motion moved and seconded; roll call recorded affirmative votes; motion passed.
- Approval of undergraduate tuition and mandatory fees proposal (FY26, 4.98% total increase; tuition ~5.9% increase; fees ~4.58%): motion moved and seconded; roll call recorded affirmative votes; motion passed. (Full board action scheduled for May 23.)
- Approval of non‑mandatory course fee changes (brewing, theater & dance, music applied lessons, ensemble): motion passed by roll call.
- Approval of Gatton College of Pharmacy tuition increase (2%): motion passed by roll call.
- Approval to continue fixed‑price online master’s tuition model for new cohorts ($618/credit hour): motion passed by roll call.
- Approval to set undergraduate rate for students using DOD tuition assistance at $250/credit hour and waive course fees for those students (3‑year pilot): motion passed by roll call.
- Approval of proposed 2.3% salary pool and preliminary budgets (implementation contingent on state appropriations and finalized enrollment): motion passed by roll call (one trustee recorded a dissenting vote on the salary pool).

Attributions and quotes
- Christy Grant, presenting the proposals, said, “We are proposing a 4.98% increase in total tuition and mandatory fees for all classes of undergraduate students on the main campus.”
- Colonel Bishop, presenting the military TA proposal, said the university’s motion “would be to lower the undergraduate tuition cost for service numbers utilizing TA to match the $250 per credit cap,” and that a conservative estimate of 80 TA students at 15 credits per year would be a “net gain in revenue to ETSU of $300,000.”

What happens next
The committee’s approvals will be folded into final budget materials to be presented to the full Board of Trustees at its May meeting for final action on tuition and fees. The salary‑pool implementation will await the General Assembly’s final appropriations decisions and the university’s finalized fall enrollment figures; the military‑TA policy is set as a three‑year pilot and will return to the board for reapproval and evaluation at the end of that period.

Ending
Trustees and staff said they will circulate additional program‑level impact calculations (for example, average per‑student cost impacts for theater majors) and that more detailed budget allocation plans and distribution proposals for salary increases will be provided to trustees once state appropriations and enrollment figures are finalized.