(NASHVILLE, TN), September 16, 2010 – The Tennessee Higher Education Commission (THEC) was instructed in a joint meeting of the Senate Education and Senate Finance Committees this week to revisit a new funding formula which would have been punitive to Middle Tennessee State University (MTSU).  The action came after local State Senators Bill Ketron (R-Murfreesboro) and Jim Tracy (R-Shelbyville) drilled THEC officials about new changes which would have cost MTSU $12 million, and questioned them regarding the revision of the formula after it had been presented to local officials and the public for input. 

The meeting was also attended by Rutherford County Executive Ernest Burgess, MTSU Senior Vice President John Cothern and Murfreesboro Mayor Tommy Bragg.  Bragg testified to the committee regarding the hardship that such a funding formula change would place on MTSU. 

“We cannot allow a funding formula which is supposed to help promote more college degrees in Tennessee to punish a university which has increased its graduation rate more than any other institution in the state,” said Senator Ketron.  “That is counter-productive to our goal of increasing the number of college graduates.  The committee has asked them to revisit the matter and come back to us next month.”

The formula was devised to comply with the state’s new Complete College Tennessee Act.  That new law called for THEC to retool the funding formula to make it substantially based on outcomes, including end of term enrollment or student retention, as well as timely progress toward degree attainment and degree completion.  Before, the formula was primarily based on beginning of term enrollment.  The legislation had multiple accountability measures, which included that before the revised funding formula goes into effect that it “shall be presented to the Education and Finance, Ways, and Means Committees of the Senate and House of Representatives for review and recommendation.”  Both the House and the Senate held those meetings this week on Capitol Hill.

The newest funding formula presented by THEC to the committee would provide $25 million additional dollars to the University of Tennessee at Knoxville (UTK), while both MTSU and the University of Memphis would suffer losses.  The first formula presented by THEC on July 12 would have resulted in no loss of funds for MTSU.  That formula was presented to MTSU officials and to the public for input.  However, on July 29 a second formula was presented to the Task Force charged with making recommendations on the matter which would cut the funding MTSU receives by $12 million.  This was due to last minute changes made in “weighting” a variety of factors used to measure a university’s success.

“Our graduation rate has grown over the last ten years by 65.5 percent,” added Tracy.  “That is no small task, especially when it was done by a university which has operated successfully in the most efficient manner with our tax dollars.  Our committee has directed THEC to go back to the Task Force and to work through the problems with MTSU and to come back to us with written comments in October.  Hopefully, we will see the needed changes at that time.”     

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