Looking toward the 2025–26 fiscal year, the Tennessee Higher Education Commission (THEC) is recommending operating state appropriations of $147.4 million for MTSU. This would be a $2.1 million increase, or 1.5%, over 2024–25 appropriations. This net increase is a combination of a decrease of $1.4 million in outcomes formula adjustments and an increase of $3.6 million in proposed new funding for the University. Funding for any 2025–26 salary increases is not included in these figures and will not be known until the release of the governor’s budget in early February.

Last June, the MTSU Board of Trustees approved one 2025–26 fiscal year capital outlay project to be submitted to THEC. The request was for a proposed Civic Leadership and Applied Humanities Building. Total project cost is $112.5 million, with $103.6 million requested from the state and the University required to match the remaining $8.9 million. THEC included the $103.6 million in the budget request to the governor as the No. 2 project in the state.

THEC also voted to recommend $23.5 million in capital maintenance funds for 13 MTSU projects, which mainly includes central plant and campus utilities updates, roof repairs and replacement, structural and exterior envelope repairs, campuswide access control and security updates, elevator modernization, lighting and electrical updates, plumbing and restroom upgrades, and HVAC and controls updates. In addition, for 2025–26, THEC proposed two separate funding requests for special initiatives for ADA improvements and for safety and security. MTSU’s portion will be $1.57 million for ADA improvements and $2.1 million for safety and security, if funded in the governor’s budget.

THEC’s recommendations have been submitted to the Department of Finance and Administration for consideration in the proposed state budget that Gov. Bill Lee will be submitting to the state legislature. At that point, we will have more information regarding our likely 2025–26 state and capital appropriations.