As state tax collections continue to decline, public universities could face at least another six percent budget cut — possibly more — from state appropriations by next year.

Tennessee Board of Regents officials sent word last Friday for campuses to plan for the possible additional reductions. The budget committee met last Friday to discuss the forecast for TTU.

The temporary saving grace for TTU and other campuses is the federal requirement that state governments maintain their financial support for public universities for the two years they also receive stimulus dollars — called “maintenance of effort” funding. Maintenance of effort is non-recurring funding, but it does provide a brief window of opportunity for universities to plan for the additional reduction.

The concern for campus officials, however, is when the stimulus funding ends, so will the maintenance of effort funding. On top of previous permanent reductions, that will result in budgets that look as much as 32 percent smaller for TTU than they did in 2007.

The new cuts are expected to amount to about $4.4 million for TTU. Add that to the $12 million reduction the campus will face next year, and the total impact in 2011 will be at least $16.4 million less in state funding.

In the meantime, this year’s FTE enrollment increase of 5.7 percent, the partial tuition cap removal, and a tuition increase have brought in about $1.3 million in revenues that campus officials had not yet incorporated into the three-year budget plan.

A long list of funding needs was discussed at the budget committee meeting. Among others, that list includes scholarship funds to offset declining lottery scholarship support, STEM building and program costs, and the bill for campus to take over the aging public health building.

Priorities in Academic Affairs include implementation of the Living and Learning Villages program, filling of key administrative and faculty vacancies, development of a library commons area, and more.

President Bob Bell will meet with Jack Armistead, provost and vice president for Academic Affairs, and Claire Stinson, vice president for business and planning, to review the needs list and bring recommendations back to the budget committee for discussion and review.