The following statement was released to the media across the state by UT
President Eli Fly.


     "While the General Assembly avoided a state government shut down with
the 'Stop Gap' budget it passed Friday night, the legislature's action
places public higher education in a precarious position.

     "Any increase in student fees would be offset by a dollar-for-dollar
reduction in state appropriations. This removes all flexibility for the
state's public colleges and universities. The University of Tennessee has
fixed-cost increases, or uncontrollable costs, totaling approximately $8
million. Half of this amount is the University's share of increased health
insurance premiums for its employees. Rising utility costs total
approximately $2 million, and there are other unavoidable expenses such as
opening new buildings.

     "If the General Assembly fails to correct this situation, the
University of Tennessee has very few options. We would be faced with
limiting enrollments, reducing the workforce and eliminating programs.
These choices are harsh, and we need to avoid any of them. Students pursing
a college education do not deserve to be put in this situation. A college
education is an investment by both the student and the State of Tennessee.

     "However, the University cannot continue to do more with less. The
budget that was provided public higher education last year by the Governor
and the General Assembly was the best in 10 years. It temporarily slowed
the bleeding.

     "We hope when the General Assembly reconvenes Thursday it will find a
way to fund the budget recommended by the Tennessee Higher Education
Commission and the Governor."



Chuck Cantrell
Director, Office of University Relations
University of Tennessee at Chattanooga
201 Founders Hall
Chattanooga, TN 37403

[log in to unmask]
Voice (423) 755-4363
Fax (423) 755-5299