Impoundment

The first impoundment of appropriated funds by the state was in 1937. In fall 1980, the state impounded $2,750,000. The money was gathered by a 1 percent budget assessment from each UT Knoxville department, delay or cancellation of construction projects, and an $11 increase in the Student Health Fee (from $25 per quarter to $36 per quarter). In February 1982 Governor Lamar Alexander imposed a $27 million state “spending freeze,” which he characterized as “not an impoundment” because if tax collections improved, funds could be released. UT froze all hiring and renovations and made an across-the-board operating and equipment cut and in July 1983 received a proportionate share ($900,000) of $5.6 million returned to higher education “over-impounded” in February 1982.