MTSU takes $3.2 million hit from tax shortfall on The Murfreesboro Post

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MTSU takes $3.2 million hit from tax shortfall

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By: MICHELLE WILLARD, Post Staff Writer

Posted: Wednesday, October 8, 2008 3:46 pm

The dire economic conditions that forced Murfreesboro to enact a budget freeze this week has also forced the state of Tennessee to reduce payments to higher education by $43.7 million.

The whole state budget is facing a $232.5 million shortfall. Most of the money will come out of TennCare and higher education with MTSU having to absorb $3.2 million as its part of the proposed $25 million in budget cuts to the Board of Regents schools.

"Despite this new budget challenge and our earlier budget cuts of $6.1 million this fiscal year, I want you to know that we remain committed to protecting the core academic mission of our University as best we can under these circumstances," MTSU President Sydney McPhee said.

TBR Chancellor Charles Manning in turn requested schools look for budget cuts of 3.4 percent overall. This follows a $6.1 million cut over the summer, when the state was flushing out its budget for the 2009 fiscal year.

“While we certainly wish a reversion weren't necessary, given the state of the economy this is not a surprise and is certainly understandable,” Manning said.

State Finance Commissioner Davis Goetz blamed the cuts on the current economic conditions and the recent drop in state tax revenue collections.

According to the Tennessee Department of Revenue, sales tax collections were down almost $40 million in August, the first month of the new fiscal year. That’s a decrease of 4.7 percent statewide below August of last year.

July was only a little better with the state showing a dismal 1.4 percent decrease or a drop of more than $8 million.

MTSU will submit its proposed cuts to TBR Friday.

Tagged under CITY, MTSU

Member Opinions:

By: greaterhands on 10/9/08
Why dont MTSU get rid of the dead weight such as the full time professors who work 2 or 3 days a week. That is why MTSU has to have extra staff. It is the waste at MTSU and not the peons on the payroll who financially hurt the University. There is too much fat on the payroll at MTSU.