'We've got to tighten our belts': ETSU to raise tuition as inflation outpaces state funding

The East Tennessee State University Board of Trustees' Finance and Administration Committee is considering a tuition and mandatory fee increase for the 2026–27 academic year, citing rising operational costs and limited state funding as key drivers. During a special called meeting Tuesday, committee members discussed a proposed range for tuition and fees rather than a final increase, with a formal recommendation expected at the board's quarterly meeting on May 21. The proposal comes as the university works to balance affordability for students with the financial demands of maintaining academic programs and campus services. "The decision around tuition is one of the most important responsibilities of this board," said Chief Financial Officer and Vice President of Business and Finance Christy Graham. "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 students' success." The discussion was not about approving a specific increase, but about establishing a range that accounts for uncertainty in state funding and pending guidance from the Tennessee Higher Education Commission, according to Graham. Graham said the university is building its fiscal year 2027 budget in a challenging environment where higher education costs are rising faster than general inflation. Key cost drivers include salaries and benefits, utilities and efforts to remain competitive in recruiting faculty, staff and graduate students. University officials compared the Consumer Price Index, which rose about 3.1% over the past year, to the Higher Education Price Index, which increased between 3.4% and 3.6% over the past two years. Graham said the difference reflects the labor-intensive nature of universities and the cost of maintaining complex facilities. "Universities are labor intensive organizations and operate complex facilities, labs, residence halls and research infrastructure — that drives costs higher than general inflation," she said. "As you can see by this chart, 85% of the calculation for HEPI is salaries and benefits." Despite a proposed increase in state funding, officials said the additional support will not fully offset rising costs. The governor's budget includes about $4.4 million in new funding for ETSU, but adjustments to the state's outcomes-based formula reduce that increase to roughly $1.3 million. Graham said ETSU would need approximately $7.8 million in additional revenue to maintain its current level of services, accounting for inflation, a proposed 1.5% salary pool, increased insurance costs and higher utility expenses. Insurance alone is projected to rise by about $2.5 million, while utilities are expected to increase between 4% and 6%. The proposed tuition and fee range reflects those pressures. For in-state undergraduate students, tuition and mandatory fees could increase between 2.32% and 4.84%. That would raise per-semester tuition from $4,401 to between $4,503 and $4,614. Mandatory fees would also increase, bringing the total annual increase to between $268 and $522. At the higher end of the range, the university estimates it could generate about $5.6 million in additional revenue, compared to $2.7 million at the lower end. Graham noted that ETSU currently remains below the state average for tuition and fees, which stands at $11,126 annually for public universities. "We are very mindful of the impact on students and family," she said. "The university continues to pursue operational efficiencies, review of academic and administrative structures and opportunities to better utilize resources in ways that support students while minimizing cost increases." The final tuition range must fall within limits set by the Tennessee Higher Education Commission, which is expected to establish a binding range in mid-May following approval of the state budget. Board members confirmed they cannot exceed the upper limit set by the commission but may choose any rate within that range. ETSU President Dr. Brian Noland said other universities are considering higher increases, suggesting the commission's final range could shift upward. "I do know from conversations with other presidents across the state that there are institutions that are bringing ranges to their board that are above and beyond the 4.8 number that we're bringing to you today," Noland said. "So I do think, as Graham noted, that there'll be some adjustment upward in what THEC presents to the board as a result of the funding that will be evidenced at the conclusion of the legislative session." Even at the highest proposed increase, university leaders said ETSU would still face a budget gap, requiring additional cost-cutting measures. "Across the campus, that's one of the reasons why we're driving home efficiency measures, we're pushing hard on vacancy management," Noland said. "We know, as an institution, we're going to have to move through some efficiency related items just to cover the increased operating costs that we're seeing from utilities, fuel, personnel expenses, et cetera. "Irrespective of what the fee increase is, we've got to tighten our belts." Committee Chair Melissa Steagall Jones said the decision ahead will not be easy but is necessary. "This is one of the most important things we do on the finance committee, and it's never easy to raise tuition, but it has to be done," Jones said.