Report
Back to sections

Section V: Resources
SACS Comprehensive Standard for Financial and Physical Resources 

V-1.  The institution's recent financial history demonstrates an acceptable financial stability.

JUDGMENT OF COMPLIANCE

Yes, East Tennessee State University is able to provide a portfolio of evidence supporting compliance.  

STATEMENT OF RATIONALE FOR JUDGMENT OF COMPLIANCE

East Tennessee State University defines acceptable financial stability as the ability to offer and maintain quality educational and co-curricular experiences to students in times of fluctuating enrollments and temporary declines in state appropriations and other revenue sources.  The core commitment of our institution is to provide quality instruction in a complete academic environment designed to promote curiosity and accomplishment through research and creative endeavors and commitment to community through public service.  We sustain this core commitment, even in periods of unpredictable state resources, by prioritizing needs that impact the quality of instruction at ETSU.  One indicator of our financial stability is the fact that all 54 ETSU degree programs eligible for accreditation receive satisfactory support for maintenance of accreditation (ETSU Accreditation; Tennessee Board of Regent's Report Card for ETSU, Indicator 8).  The way our students feel about the education they are receiving and how they succeed in life may be the ultimate measures of our success in maintaining quality education at ETSU.  While there is always room for improvement, 88% of students currently enrolled said they were satisfied with the education they are receiving, and 83% of alumni rated the institution overall as "excellent" or "good" (TBR Report Card for ETSU, Indicators 3, 4).

State of Tennessee appropriations for public higher education are based on an enrollment-driven formula.  The formula provides a safety net for institutions by reducing the funding base only after two consecutive years of declining enrollment. Enrollment growth above base funding levels also is not factored into the formula until the following year (Tennessee Higher Education Commission, Schedule of Operating Appropriation Requests Instructions).  The primary function of the formula is to ensure the equitable distribution of available state funds among state public institutions.  Unfortunately, the higher education funding formula has not been fully funded during the past 10 years (1991-2001).

Each institution governed by the Tennessee Board of Regents (TBR) is required to maintain a minimum unrestricted reserve equal to 2% of annual educational and general revenues.  These reserve funds may be used, with TBR approval, to maintain desired quality in times of uncertain funding.  The university has accumulated discretionary reserves from the efficient operation of its programs and activities.  Prudent management in the use of these funds has enabled ETSU to continue to serve our students at acceptable levels (ETSU Financial Report, Statement of Changes in Funds Balances).

Appropriation shortfalls have resulted in temporary hiring freezes on faculty and staff, curtailed travel and delays in implementation of some improvement strategies at ETSU.  Non-appropriated resources have been redirected for the purchase of essential equipment.  Through its strategic planning and budgeting processes, ETSU has become adept at identifying and prioritizing basic needs, reallocating funds internally, and developing external resources.  Recommendations from improvement studies that enhance efficiency, eliminate duplication, and promote innovative, cost-effective solutions to problems continue to be implemented on a timely basis.  Use of the "continuous improvement" concept at ETSU has reduced costs and improved services to one or more of our constituent groups (ETSU Continuous Improvement Inventory and Reports).

Salary improvement funds at ETSU have been inadequate for the past several years.   However, the university has developed salary equity plans for all faculty and staff and has made attaining salary equity the number one priority of the university.  The early stages of salary equity plans have been implemented.  These plans are updated periodically and will be fully implemented as soon as funds are available (ETSU Salary Equity Studies).

East Tennessee State University also has taken steps to minimize the impact of rising tuition on students.  Students are now paying a higher portion of the cost of their education, including costs of technology infrastructure and similar items.  Across the university, we have been successful in increasing scholarships, enhancing research and creative opportunities for students, and forming strategic partnerships that improve the educational environment (University Profile System, President, Vice Presidents).  However, it should be noted that even though students are paying more each year, higher education is still affordable at ETSU.  In a comparison with national averages of all institutions for fiscal year 2000 (TBR Report Card for ETSU, Indicator 11), our students paid 75% of the average amount paid by students attending other public universities nationwide.  A recent publication (Kaplan/Newsweek College Catalog 2002) judged ETSU to be a "best buy" for quality education.

The many benefits of developing external resources have always been recognized by ETSU.  However, our development efforts have been greatly expanded and currently include aggressive fund-raising programs, advancing the number and diversity of innovative strategic partnerships, and encouraging research and sponsored activities.  Fund-raising at ETSU is the strongest among TBR universities (TBR Report Card for ETSU, Indicator 14), and these efforts emphasize support for student scholarships (ETSU Foundation) as well as enhanced facilities (e.g., Basler Challenge Course; Niswonger Digital Media Center).  Partnerships with industry have resulted in significant in-kind gifts that have strengthened programs and brought quality education, increased employment opportunities for students, and national recognition to the university (e.g., Alias Wavefront Partnership; Kellogg Foundation Partnerships).  Partnerships with governments have provided students with opportunities for personal growth through public service and have resulted in high-tech facilities and quality clinical and laboratory experiences for students (e.g., Adelphia Center; ETSU Quillen College of Medicine, Institutional Facilities).

Research and sponsored activities at ETSU provide resources and opportunities that both support and complement the educational process.  The growth in sponsored programs has more than tripled in the past 10 years, increasing from approximately $11,000,000 to more than $33,000,000 (ETSU Fact Book; ETSU Office of Research and Sponsored Programs, Activity Summary).

External research grants and contracts provide educational opportunities for our students in laboratories and through involvement with faculty in the development of scholarly activities.  At ETSU, indirect costs recovered from external grants may be used to enhance programs and to provide student research opportunities.  Student involvement in research and scholarly activities with the close mentorship of faculty is considered an invaluable part of both undergraduate and graduate education at ETSU.

DOCUMENTATION

	Report
Back to sections
Top of Page

reference room | pilot project | compliance audit | enhancement plan
search | contact | home

East Tennessee State University
alphabetical site index

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O
P | Q | R | S | T | U | V | W | X | Y | Z

© 2001 East Tennessee State University
Johnson City, TN 37614