Tennessee Tech University expects to receive a total of about $25 million in stabilization funds from federal American Recovery and Reinvestment Act dollars and some State “maintenance of effort” money, all one-time funds that must be spent by the end of 2011.

Campus officials plan to use the $25 million in stimulus-related funds to temporarily cover budget reductions, fund its voluntary buyout program, pay for a central energy-saving cooling system project and support critical information technology infrastructure upgrades over the next two years.

“We had to make strategic decisions to invest this one-time funding into projects that will have the greatest impact to the entire campus while helping the university raise or save money in the long term,” says TTU President Bob Bell.

One of the first uses of the state funding is a “backfill” to cover costs associated with state budget reductions, less-than-planned for tuition increases, and the voluntary buyout program offered to employees earlier this year. When campus officials were planning for state appropriation budget reductions (TTU will lose about 18% of its state appropriations by 2011 – [Tech Times, April 3]), some assumptions were made in deciding how much to cut. One key planning assumption was the amount of tuition revenue to expect because cuts were required to be made before tuition rates were set for the coming year.

The university planned for budget reductions while assuming a total tuition revenue increase. Those tuition revenues must be spread out over three years. The “backfill” allows the university to cover less than projected tuition revenues for the first two years.

Almost $2.3 million was spent as quickly as it was received before June 30 to help cover the voluntary buyout and provide additional support for students’ College Work Study. Another $9.6 million will be spent over the next two years to support budget reductions backfill. Some $3.3 million will be spent this year to pay for an ongoing energy-savings project to upgrade the university’s central cooling system. And another $10 million will be available over the next two years to support an IT infrastructure project.

Earlier this year the campus community was invited to submit proposals for using stimulus funding [Tech Times, April 21]. At that time, officials were unsure just how much money would be available for special projects because costs related to the voluntary buyout program and transitioning to reduced state funding levels were unknown.

Ninety-four project proposals were submitted, totaling approximately $131.5 million. Because of costs associated with temporary backfill to cover budget reductions and the voluntary buyout, only about $10 million is available to fund proposal submissions. One project was selected from the group because of its importance to the campus, its broad-reaching benefits to the majority of the university, and its impact on students and our ability to retain them — a plan to upgrade, replace and enhance the university’s aging computing network and support student-centered technology projects. This project also incorporates parts of two additional proposals dealing with technological outreach to the region.

“We believe several other proposals have an excellent chance of being funded by other agencies in the state and the federal government,” Bell said. “Project investigators for these proposals are urged to work with Dr. Otuonye’s office to link with appropriate state and federal officials.”

A university task force was created and charged with the planning and implementation of the IT infrastructure project. Members include representatives from ITS, campus administration and faculty. Officials expect significant federal and state oversight on how the funding will be spent.

“This initiative has the potential to profoundly change the campus technology environment, bringing it up to one worthy of a technological university,” Bell says.

“A key element in our progress will be to fully understand, and integrate with, the major steps being taken by the State of Tennessee in providing broadband access to the Upper Cumberland area. We want to be certain that our efforts join with theirs, to create synergy both on campus and throughout the region.”

Bell stressed to the task force that annual sustainability costs associated with supporting the IT infrastructure through the next decade must also be considered.