Tennessee State officials convened on Thursday and announced that Tennessee State University is “out of money” as the university continues to pay an $800,000 contract to former President Glenda Glover to conclusion. House Speaker Cameron Sexton said on Nov. 14, that the results of its TSU financial examination revealed that there were numerous failures in leadership and management while Glover was in office.
Sexton stated, according to The Tennessean, “Why would you continue to pay her a lot of money to advise on a situation that we’re dealing with because of her leadership when she was at the helm of the university?” Glover’s contract with the university included at least $800,000 in pay although Sexton suggested
that the total was higher, as the contract was put into place under the previous TSU school board that is no longer in place. The audit concluded during Thursday’s meeting affirmed that TSU is still in dire financial straits as it continues to pay out Glover.Despite the state of Tennessee giving TSU over $30 million in cash over the course of recent months to try to maintain the institution’s financial stability, the university was still forced to lay off over 100 employees in October to save $11 million in salary expenditures as it struggled to make its total payroll. State officials stated at the meeting of the State Building Commission that much of TSU’s financial
issues were exacerbated when it received a big boost in enrollment a few years ago, and a record number of students in the large class were offered scholarships to attend. The financial audit revealed that there was not adequate financial planning in place to continue paying for these scholarships long-term and that TSU was not suited to house so many students on its campus. This semester has seen enrollment tank, as students who were originally promised four-year scholarships left when the university couldn’t fund its commitment to them.Earlier this year, state officials and lawmakers called for the total removal of TSU’s board over concerns about mismanagement, but now officials agree that TSU is out of money.
Tennessee Comptroller Jason Mumpower acknowledged that more layoffs would be needed to stabilize Tennessee State University financially. Mumpower continued to explain that the school should consider selling part of its downtown Nashville campus as well.
Mumpower told interim TSU President Ronald Johnson, “You’re here to take it down to the studs and rebuild it, I know you know that. You cannot let up. There is no reason for you to feel like the pressure has been relieved. The pressure is still on. The previous administration and trustees have driven this university to a breaking point.”
Johnson recognized that TSU’s previous board’s lack of proper management had caused the financial issues to continue to grow. “It has essentially put the institution in a crippled position. The legacy of that poor decision-making and lack of checks and balances is going to be with us for some time,” Johnson said.
Sexton claimed that Thursday’s meeting and audit proved that the removal of the previous TSU board was the right decision.
“I appreciate you coming in and showing us exactly what was going on to reiterate that what we did was the right decision in vacating the board and putting a new board in place,” Sexton said.