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In Johnson City, Tennessee, the East Tennessee State University (ETSU) Board of Trustees engaged in discussions with university leaders on Tuesday, focusing on the forthcoming budget and the possibility of raising tuition and fees.
Christy Graham, ETSU’s Chief Financial Officer, highlighted the financial challenges the university is grappling with, which range from inflationary pressures to surging insurance and utility expenses. According to Graham, the university anticipates a $2.5 million increase in insurance costs by the fiscal year 2027, alongside a projected 4-6% rise in utility expenses due to market dynamics and the vastness of the university’s campus facilities.
Graham further explained that while the governor’s proposed budget includes an additional $4.4 million in funding for ETSU, the outcomes productivity formula effectively reduces this figure by $3.1 million, resulting in a net gain of only $1.3 million. This increase, she noted, falls short of addressing the pressures arising from salaries, benefits, and operational costs.
Although faculty and staff salaries are the primary financial burden, Graham emphasized the university’s dedication to enhancing wages to maintain competitiveness with peer institutions, which have also been adjusting their pay structures upward.
Faculty and staff salaries remain the primary cost driver, but the university remains committed to improving salaries to make them competitive with other institutions, which have also increased their pay scales, Graham said.
Even if the governor’s proposed funding increase materializes, Graham said the university would still need an additional $7.8 million to “maintain what we have today.”
Currently, university leaders and trustees are looking at a possible 2.3–4.8% increase in tuition. With that range, full-time, in-state undergraduates would see a tuition increase of $102 to $213 per semester. Per-semester tuition would increase from $4,401 to between $4,503 and $4,614.
Projected additional revenue would be between $2.7 to $5.6 million.
Graham said ETSU’s tuition and mandatory fees for fiscal year 2026 were $10,994, below the state average of $11,126. Tuition and fees increased by nearly 5% last year, which was consistent with trends across the state, she said.
The university is also eyeing an increase in mandatory fees from $1,048 per semester to between $1,080–1,096, an increase of between $32 and $48. That would produce $713,370 to just over $1 million in additional revenue.
“The decision around tuition is one of the most important responsibilities of this board,” Graham said. “It requires balancing two equally important priorities. On one hand, maintaining affordability and access for our students and families. And on the other, ensuring that ETSU has the financial strength to support high-quality academic programs, competitive faculty and staff, and the services that drive student success.”
Meanwhile, the university continues to pursue operational efficiencies, review of academic and administrative structures, and opportunities to better utilize resources, Graham said.
According to ETSU President Brian Noland, even if the maximum proposed increase of 4.8% is implemented, which is not what is currently being recommended, the university would still come in “a couple million dollars below” what the operating increases will be.
“Irrespective of what the fee increase is, we’ve got to tighten our belts,” Noland said.
Graham said that even if tuition and fees are increased, ETSU’s would still be below the state average.
University leaders will solidify their proposed tuition and fees increases and present them to trustees in May.