In 1937 the legislature passed a Reorganization Act, which required that funds of state agencies be held and dispensed through the appropriate state office in Nashville. UT was not mentioned in the bill, but Governor Browning and other state officials contended that the bill covered the university. The state budget director, Henry Burke, devised a method of controlling appropriations and any over expenditure by impounding holding funds until there were sufficient revenues to release them. The $750,000 appropriated for UT shrank to $675,000, and then an additional $30,000 payment was stopped. In 1939, with the change in administration to Governor Prentice Cooper, the Reorganization Act was changed to restore authority to the board of trustees.
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