Looking toward fiscal year 2026–27, the Tennessee Higher Education Commission (THEC) is recommending operating state appropriations of $152.8 million for MTSU. This will be a $1.7 million increase, or 1.1%, over 2025–26 appropriations. This net increase is a combination of a decrease of $4.7 million in outcomes formula adjustments and an increase of $6.4 million in proposed new funding for the University. Funding for any 2026–27 salary increases is not included in these figures and will not be known until the release of the governor’s budget in early February.
Last June, the MTSU Board of Trustees approved two fiscal year 2026–27 capital outlay projects to be submitted to THEC. The first request is for a Civic Leadership and Applied Humanities Building. The total project cost is $127 million, with $117 million being requested from the state and the University required to provide the remaining $9.8 million. The second request is for the Aerospace Campus Phase 2 in Shelbyville. This total project cost is $138 million, of which $127 million is being requested from the state and the University required to contribute the other $11 million.
THEC also recommended $24.3 million in capital maintenance funds for 13 MTSU projects, which include central plant and campus utilities updates, structural and exterior envelope repairs, campuswide access control and security updates, elevator modernization, lighting and electrical updates, hydronic systems renovations, stormwater updates, sidewalk repairs, life safety systems, plumbing and restroom upgrades, and HVAC updates.
THEC’s recommendations have been submitted to the Department of Finance and Administration for consideration in the proposed state budget that Gov. Bill Lee will submit to the state legislature. At that point, we will have more information regarding our likely 2026–27 state and capital appropriations.