Tucker promises new financial plan - Understanding the Horizontal Line: A Key Concept in Financial Analysis

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Newly appointed Tennessee State University interim President Dwayne Tucker told state lawmakers Monday that he will work through the holidays to prepare a new financial plan for the public, historically Black university.

Tucker was appointed to his new role Friday after the abrupt resignation of now-former interim President Ronald Johnson last week amid pressing financial issues for the school. With his new appointment, Tucker resigned his spot on the TSU board of trustees, where he’d served since April, and temporarily stepped away from his role as CEO of LEAD Public Schools.

“What I want to do is provide some stability to the university in terms of resources,” he told the State Building Commission on Monday, which marked his first day as interim president. “That’s the only way we’re going to move forward.”

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A longtime businessman, Tucker said that he’s facilitated the turnaround of large companies in the past and that he plans to draw support from other business leaders as he works to address the university’s issues.

In recent months, the state has floated TSU over $30 million in cash to keep the institution financially viable. TSU was nearly unable to make payroll this fall and laid off more than 100 employees as of October. During his short tenure, Johnson also instituted budget cuts, a spending freeze on nonessential expenditures and a hiring freeze. Additionally, he presented a plan to avoid a $46.1 million budget shortfall at the end of the fiscal year on June 30 — something Tucker and state leaders agreed Monday was not sufficient to ensure the university’s sustainability.

Since he is brand new to the role, Tucker asked the commission for time to put his plan together, with a promise to work closely with state officials. The commission ultimately agreed to hear Tucker’s plans at its meeting on Feb. 13.

Here’s what to know about the discussion Monday.

Tennessee officials push TSU to sell property, cut programs and faculty

During the meeting, commission member Lt. Gov. Randy McNally asked Tucker if he would enact a financial exigency plan recommended by the commission for TSU. Commissioners also urged Tucker to consider cutting faculty and low-performing academic programs, along with selling off or leasing its downtown campus and selling a largely unused 25-acre lot it has at the John C. Tune Airport.

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Tucker said “everything is on the table” as he quickly works to gain an understanding of the full scope of TSU’s financial situation. Commission member Tennessee Comptroller Jason Mumpower asked Tucker and other TSU leaders present to show they understood the urgency of the situation at hand.

“The taxpayers of Tennessee are not called upon to bail out any other university … in the state the way we’ve been called on to bail out TSU primarily because of the poor judgment exhibited by the prior president,” Mumpower said.

Last year, federal officials calculated that the state of Tennessee underfunded TSU by $2.1 billion over the course of 30 years.

Tucker assured the commission that he understands the gravity of the situation, again citing his long career as a businessman. Tucker is also a TSU graduate and previously served as chair for its foundation board. He said that, in the weeks to come, he will create a clear, concise plan to present to the commission.

“I want to come to you with full peace of mind,” he said.

State leaders praise TSU for cutting ties with former president Glenda Glover

Mumpower affirmed the board’s decision to accept Johnson’s resignation, along with the resignation of TSU’s general counsel, Laurence Pendleton. He also praised the board for urging Johnson to end an agreement with Glover, prepared by previous leadership, that would give her a total of $1.7 million for a payout and ongoing advisory role over the next four years.

Mumpower also said Glover “made out like a bandit while only leaving a legacy of dysfunction.”

Mumpower pointedly asked Tucker and TSU Board Vice Chair Charles Traughber if they were personally committed to cutting all ties with Glover. Both said yes, while maintaining that her contract is the subject of potential litigation. As of November, Board Chair Dakasha Winton said Glover had drawn more than $500,000 in pay from the agreement.

After the meeting, Tucker said he felt the questions were fair and expressed hope for the future as he and state leaders work together to stabilize TSU.

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