KNOXVILLE, Tenn. — A $943 million belt-tightening budget for the year beginning July 1 will be recommended to the University of Tennessee board of trustees Thursday.
The board’s finance committee reviewed and approved the proposed budget Wednesday. It includes:
* $561.4 million for instruction, research and public service, up nearly $9.7 million from the 1994-95 budget but reflecting virtually no real increase in state appropriations. The proposed budget shows an $8.3 million increase — $6 million which the state directed UT not to spend this year and $2 million to fund a salary hike last January.
* $278.9 million for operation of UT hospitals in Memphis and Knoxville, down $17.1 million from a year ago because of uncertainty about availability of TennCare and other health care-related funds in 1995-96.
* $102.8 million for auxiliary enterprises — bookstores, residence halls and apartments and the UT-Knoxville men’s athletics department — an increase of $3.7 million over the current year.
The hospitals and UT-Knoxville men’s athletics program are financed by revenues they generate and receive no state funding.
The new budget includes $4 million from student fee increases — ranging from 3 percent for in-state undergraduate and graduate students, the smallest percentage hike in 12 years, to 15 percent out-of-state tuition in medicine, dentistry and pharmacy.
UT’s fees are “at or below the average for like institutions” in the South, UT President Joe Johnson said. “However, UT is significantly below the average for out-of-state fees in the medical fields and in veterinary medicine.” The fee increases will be used for scholarships and to offset inflation, he said.
The legislature did not provide any money for salary increases or instructional and research equipment, Johnson said. UT will operate with 14 fewer employees next year, he said.
The university is doing “an internal analysis of how to better serve our students and the public by making more efficient use of existing resources,” Johnson said.
Any unspent funds from the 1994-95 budget should be held in reserve to hire additional staff where enrollment increases warrant, to improve academic and research facilities and to meet other unforeseen requirements, he said.
Of the $561.4 million budget for all expenses other than hospitals and auxiliary enterprises, 47.3 percent is allocated to instruction, 7.3 percent to maintenance of the physical plant and 2.8 percent for scholarships. The amount of money UT has allocated to scholarships has increased 85 percent in five years.
State appropriations provide 62.8 percent of the $561.4 million, and student fees generate 21.6 percent.
Charles Peccolo, UT’s treasurer, told trustees the university through March 31 had earned 9.2 percent, or $14.4 million, on its investment in the past 12 months.
Contact: Emerson Fly (615-974-2243)