Dave Goetz

NASHVILLE — A Senate committee on Wednesday conditionally authorized $177.7 million in bonds for new college and university projects, drawing a response from Finance Commissioner Dave Goetz that they “ignored the current fiscal problem.”

“This is an act of legislative irresponsibility that I don’t quite remember seeing in this fashion before,” Mr. Goetz said after the Education Committee’s action. “Do they not read the paper? Do they not look at monthly revenue reports? Do they not understand that we in fact are going in reverse direction on revenues?”

Mr. Goetz said preliminary revenue figures on January sales, expected to be released next week, show existing problems are “a lot worse, significantly worse.” The state is “continuing to see deterioration in the sales tax” collections, he said.

His spokeswoman, Lola Potter, later said it is “hard to say” if additional cuts in the current fiscal year’s budget will be required “until we see the final numbers, and we don’t have them yet.”

Gov. Phil Bredesen’s proposed budget, which took into account worsening conditions at that time, provided for up to $201 million in program reversions, cuts and use of reserve funds to offset shortfalls in the current 2008 budget.

For the proposed fiscal year 2009 budget, the governor recommended few additional state appropriations for higher education. The budget, meanwhile, contains $53.6 million for higher education maintenance.

Earlier Wednesday, Senate Education Committee members conditionally approved a motion by Sen. Jim Tracy, R-Shelbyville, that would add seven projects to the administration’s proposed $1.68 billion budget for higher education. The annual cost of the bonds would be $30.5 million. It includes $115 million for a building at Middle Tennessee State University in Rutherford County, which Sen. Tracy represents.

None of the projects approved involve the University of Tennessee at Chattanooga, Chattanooga State Technical Community College or Cleveland State Community College.

Senate Finance Committee Chairman Randy McNally, R-Oak Ridge, who serves on the education panel, included a qualification in the motion noting that “if conditions improve in the state, that this would be a priority of the Education Committee. I think it’s more an expression of intent if the money is there.”

Sen. Andy Berke, D-Chattanooga, asked “is there some plan for additional revenue of $30.5 million, or is there some decrease somewhere of $30.5 million, or is it just pass it and kind of see what happens?”

Sen. McNally said that “in all probability ... we’re probably looking at additional cuts rather than additional money.”

The motion passed on a voice vote.

Education Committee Chairwoman Jamie Woodson, R-Knoxville, later explained the decision to approve conditional funding, saying, “we have accreditation issues” involving buildings at some institutions.

Efforts to contact her after Mr. Goetz’s comments were unsuccessful.

During the meeting, University of Tennessee, state Board of Regents and Tennessee Higher Education Commission officials reiterated pledges not to implement double-digit tuition increases in light of fewer state appropriations.

“I think it would be unreasonable for us to look past a single-digit tuition increase, but understanding that under the current budget that means a tremendous amount of reallocation, cutting,” UT President John Petersen said.

The system will “take a little step backward,” he said.

Since the late 1990s, Tennessee has approved major boosts in operational funding for higher education only twice. That was $87 million in fiscal year 2007 and $79 million in the current fiscal year, according to THEC figures. Tuition rates have increased substantially.

Board of Regents Chancellor Charles Manning said two-year community colleges and technology centers will bear much of the brunt because a large part of their funding comes from state appropriations.

He said the schools likely will continue pushing measures such as increasing part-time faculty. Support for student services such as libraries could take a hit, he said.

Dr. Petersen said UT’s Chattanooga, Knoxville and Martin campuses could see less money to improve faculty salaries than officials would like.

BY THE NUMBERS

* $1.68 billion — Proposed state budget for higher education in fiscal 2008-09

* $177.7 million — Bonds for college and university projects approved by a Senate committee

* $30.5 million — Annual costs of the bonds