Tennessee State: Bill to vacate board stirs questions about underfunding, disparities

A proposed bill that would vacate the Tennessee State University board has raised questions among the school's leadership and students.

The measure would still allow the historically Black university in Nashville to have an independent board for the next two years, but Gov. Bill Lee could opt to appoint all new members. The move comes as a $2 million forensic audit, commissioned by legislators and conducted by an outside firm, is still underway. The audit was originally due on Dec. 15, according to the Tennessee comptroller's office. It is not clear when it will ultimately conclude.

While scrutiny of finances and leadership at TSU is not new, university leaders say they're doing everything they can to make changes and comply with auditors.

So what's driving the move to dissolve the university's board amid an unfinished audit and years of controversy? The Tennessean spoke to students, university leaders and a key lawmaker to examine that question.

Dig deeper: TSU, state clash over audit as Tennessee lawmakers consider vacating board

Students: Disparities at TSU are clear

Set foot on the TSU campus and you don't have to look far to see the effects of decades of underfunding by the state, according to students Derrell Taylor and Chrishonda O'Quinn.

"When I came to TSU, I noticed that a lot of the facilities looked very worn down, not improved or renovated," said O'Quinn, a senior business administration major who serves as the executive vice president for the TSU Student Government Association.

It wasn't long before she learned about the historic underfunding TSU has faced from the state. Recent data from the Department of Education and the Department of Agriculture calculated that underfunding at a whopping $2.1 billion over the last 30 years, the largest amount of any state.

More: Biden administration says Tennessee State University has been underfunded. Here's what that means.

But the fallout from the underfunding extends well beyond the facilities, said Taylor, a senior and president of the Student Government Association.

"We've faced disparities, we've faced challenges, as it relates to our governance and our independence and our structure and our resources," he said.

Multiple social media posts about the bill wondered whether the state would remove the board to somehow avoid fully restoring the historic underfunding. Taylor sees it differently. If lawmakers ultimately decide to vacate and reappoint the board, or shift authority to a state-run agency, he hopes it would restore trust between TSU and state leaders. He hopes that would clear the way to address the disparities and underfunding.

While both students readily acknowledged that changes and accountability have been needed at TSU, they also said the legislation has left them and others feeling hurt and uneasy.

"When we have decisions that are going to be made by people who have never set foot on our campus, it raises a lot of concerns," Taylor said. "These decisions, will they be in the best interest of the student?"

Still, Taylor and O'Quinn take pride in what TSU has accomplished, the alumni it's produced and the community it has fostered. They said it's disheartening to see the school cast in such a negative light.

"The culture is absolutely amazing," O'Quinn said. "It is a family-oriented environment."

Lawmaker speaks to financial scrutiny, questions about motive behind TSU bill

Sen. Jon Lundberg, R-Bristol, filed a key amendment to the bill, SB1596/HB1739, that included language about vacating and reappointing the board. He explained that the board was set to "sunset" at the end of June this year. Sunsetting is a routine process that state-appointed boards and agencies face under the authority of state lawmakers. For example, lawmakers are extending the state Department of Children's Services but requiring DCS to submit quarterly reports updating them on progress mitigating audit findings.

So why the move to vacate the TSU board instead of giving it more time, especially as the forensic audit is still pending? Lundberg did not directly answer the question. He instead repeatedly referred to the fact that the audit is not complete and no information has been provided to lawmakers. He said his understanding is based on what the state comptroller's office has told him about the audit.

"It is no secret that TSU has had financial issues and problems ongoing for nearly a decade," Lundberg told The Tennessean. "We still don’t have that (forensic) audit. According to that firm, we still don’t have documents, all the things they need from TSU."

While lawmakers have the power to extend the sunset date for state-appointed boards and agencies, Lundberg sees the move to vacate and reconstitute the board as "the best scenario" to provide continuity. He said that's better than dissolving the independent board altogether and relegating TSU to state control. A bill, which Lundberg sponsored, carves out that transfer of power. That bill, SB2109/HB2346, sailed through the Senate but is still awaiting action in the House.

Read more: Tennessee Senate passes university board bill amid House discussions on TSU

TSU has maintained that it's done everything it can to comply with the audit and that it continued to receive new requests past the Dec. 15 deadline.

"This is an unfortunate attempt to sway public opinion on pending, unwarranted legislation," part of a statement TSU sent to The Tennessean read. "Any implication that TSU contributed to the delay of the completion of the forensic audit report is simply untrue."

TSU says it's in its 'best financial position ever,' president weighs in

TSU said that its endowment now sits at $145 million and that it has seen a 145% increase in its endowment since 2012. It also said the university has never defaulted on any debts or been late for debt payments.

"TSU's financial position remains strong," a statement from the school said. "The university is in its best financial position ever."

For TSU President Glenda Glover, addressing the historic underfunding remains her top priority. She noted that the bill to replace the school's board still must be passed by the full Senate and the House.

"We need to have some better ways to negotiate right now," Glover said. "We need to have more conversations with the leaders about what's going on with TSU. I'm not so sure everybody understands just all the great work and things that we're doing at TSU."

While other public historically Black colleges and universities have turned to the courts to address underfunding, Glover said TSU will continue to work with the legislature and governor to recoup those funds.

"We prefer negotiation as opposed to litigation," she said.

Glover, after a decade leading TSU, announced that she will retire at the end of this academic year. The school could potentially start next year with a new president and an entirely new board. The current board had planned to appoint a new president by April. If the legislature replaces the current board, that could affect the presidential search and potentially give a new board authority to name Glover's successor.

A blistering comptroller's report last year moved lawmakers to demand changes in TSU's leadership. The report said TSU's management "has repeatedly fallen short of sound fiscal practices."

Glover rejected the report's conclusion that the university lacks good leadership.

"There are no management issues," she said. "Whoever said that may not have taken into consideration all that we're doing."

What's next for TSU

TSU expressed its desire to keep the conversation open as the legislation, audit and presidential search all unfold.

"We are continuing to talk with lawmakers and Gov. Lee to ensure that legislation reflects the hard work conducted by the board and the university to address issues raised at the state level, to minimize any possible disruptions to the students’ academic pursuits, and permit the student, faculty and community-centered search committee to continue their great work in helping the board identify the next TSU president," the university said.

TSU leaders have asked lawmakers for more time and to await to outcome of the latest audit. The bill to dissolve the board swiftly passed a Senate committee but faces several more steps before it passes the Senate. The House has yet to take up the measure.

It's not clear when the forensic audit will be complete or when lawmakers will take the bill to dissolve the TSU board up again.

Reach children's reporter Rachel Wegner at RAwegner@tennessean.com or follow her on Twitter, Threads and Bluesky @RachelAnnWegner. Reach reporter Todd Price at TAprice@gannett.com or find him on Twitter @TPrice504.

This article originally appeared on Nashville Tennessean: TSU board bill brings TN underfunding, questions on motive forward