A Message from Acting UT President Eli Fly To Faculty and Staff at All UT
Campuses
July 18, 2001

Members of the University's Board of Trustees met today in Knoxville, and I
wanted you to know the actions they took.

By way of background, the appropriations bill passed last week by the
Tennessee General Assembly provides no new operating dollars for higher
education. It does fund an insurance increase, provides 2.5 percent raises
for faculty and staff, and allows us to increase student fees. Bear in mind
that the governor hasn't yet signed the appropriations bill and may veto
it, so these are not certainties.

In this situation, the University's options are few. We are actively
seeking further cost savings. Our other alternatives are to reduce services
and/or raise student fees.

In this abysmal situation, the Board approved a 15 percent increase in
in-state undergraduate tuition. Graduate student fees will rise 8 percent;
veterinary medicine, 10 percent; law, medicine, and dentistry, 15 percent;
and pharmacy, 25 percent.

Once again, students and their parents have to pay because the General
Assembly did not. So we are inclined, after covering our fixed costs, to
direct any available money to the areas that would benefit students the
most--instruction and student life.

One more comment about your pay increases, because I know they are really
important to you. We cannot give increases unless and until the governor
signs the appropriations bill. We will announce and implement pay raises as
quickly as possible when we're authorized to do so.

Obviously, we're all disheartened by the effects of the state's revenue
situation on our university. This fall we will take the positive step of
launching an educational campaign throughout the state to inform Tennessee
citizens about higher education's needs and the effects of years of
inadequate state funding. This should help people understand that short
changing education puts our students at a long-term disadvantage that will
plague Tennessee for years to come.

I also will be setting up a working group within UT to try to identify more
ways to save money. We have to try harder to make the wisest use possible
of every dollar.

I will keep you informed as we learn more about our state appropriation for
this fiscal year and its impact on the budget.



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

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Voice (423) 755-4363
Fax (423) 755-5299