Tennessee State University faces a challenging financial situation, with state officials confirming on Thursday that the institution is essentially “out of money.” This announcement comes as the university continues to pay former President Glenda Glover an $800,000 contract, despite mounting criticism of her leadership during her time in office.
House Speaker Cameron Sexton didn’t hold back when discussing the results of a TSU financial audit, which revealed major leadership and management failures under Glover. “Why would you continue to pay her a lot of money to advise on a situation that we’re dealing with because of her leadership when she was at the helm of the university?” Sexton said. He also suggested the total payout to Glover may be higher, as her contract was put in place under a now-defunct school board.
TSU’s Interim President Ronald Johnson admitted that poor decision-making and a lack of oversight by the previous administration have left the university in a “crippled position.” He added that fixing the issues would be a long process, likely taking three to four years to stabilize the school’s finances and adjust to an appropriate enrollment size.
The financial troubles didn’t happen overnight. A surge in enrollment a few years ago brought in a record number of students, who were offered scholarships, but the university failed to create a solid plan to sustain those commitments long-term. Many of those students left TSU this semester when the university couldn’t fulfill its scholarship promises.
This misstep, combined with years of financial mismanagement, has forced the university to take drastic measures. In October, TSU laid off over 100 employees to save $11 million in salary costs. The school also cut an additional $13 million in spending, travel, and purchases. Despite these efforts, the situation remained so dire that Tennessee State had to repurpose $32 million from a campus building project to keep the lights on through the end of 2024.
TSU’s financial challenges run deeper than recent leadership issues. A federal report revealed that the state underfunded the university by $2.1 billion over the last 30 years. A separate state study determined that the state shortchanged TSU by up to $540 million over a century, placing it at a long-term disadvantage compared to other schools.
For now, Tennessee State is focused on survival. Interim President Johnson and state leaders are working to stabilize the school’s finances, but the road ahead won’t be easy. Comptroller Jason Mumpower clarified that there’s no room for complacency, telling Johnson, “You’re here to take it down to the studs and rebuild it. The pressure is still on.”
The situation has been heartbreaking for many, especially first-generation college students who saw their dreams dashed by scholarship cutbacks and financial instability. Secretary of State Tre Hargett shared his disappointment, calling the impact on students “devastating.”
Despite the challenges, there’s hope that new leadership and hard decisions will help TSU rebuild and thrive again. The university has a legacy as one of the country’s leading historically Black colleges and universities, and its community is determined to see it through this crisis.
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