Good morning.

Governor Lee presented his 2025-26 budget to the 114^th Tennessee General Assembly this past Monday evening. We have conducted a preliminary analysis of the details of the Governor’s Budget, and I wanted to outline how his proposed budget could affect our University if approved by the General Assembly.

Highlights of the budget as they relate to MTSU’s institutional needs and priorities are as follows:

• Net operating appropriations will increase by $319,100.
• Salary pool funding based on a 2.6% increase, totaling $3,215,500 in new state appropriations. As in years past, the salary pool appropriation is only partial funding, and the University would need to fund the remaining pool amount from other revenue sources. The University will receive an additional $761,100 to cover group health insurance premium increases for a partial year.
• The Governor recommended $487.5 million in capital improvements funding for all higher education. MTSU will receive $53 million in funding for additions and improvements to the Murphy Center. The Governor also recommended $49.8 million in capital maintenance funding. MTSU will receive $3.5 million as partial funding for one of the thirteen capital maintenance projects MTSU submitted. These funds are for the replacement of building envelope components, structural repairs on multiple buildings, and related work.

As the General Assembly debates the final budget, we will continue to review additional information as it becomes available and incorporate the impact into the University’s budgeting process for the upcoming year. As future developments are known, I will keep the campus updated on the Legislature’s actions.

Sincerely,
Sidney A. McPhee
President