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CHATTANOOGA, Tenn. — The University of Tennessee is responding to the state’s call to cut costs and find alternative sources of income, UT President Joe Johnson told the school’s trustees Friday.

 In return, the governor and legislative leaders are recommending more funds for UT and the state’s other public colleges and universities, Johnson said.

 UT has its largest ever capital outlay recommendation — $57 million — and, for the first time in seven years, there is new money for operating budgets, he said.

 “The governor and legislative leaders challenged us to do a better job,” Johnson said. “They said find alternative sources of income, quit spending so much on administration, help yourselves, raise money, privatize and cutback.

 “We are trying to respond and we are doing some things better. Our governor is saying to us, ‘I am going to recommend more money to be invested in you,’ and the legislative leaders feel the same way.”

 Action by the trustees included approval of a technology fee increase and a new master’s degree program, both at the University of Tennessee-Chattanooga.

 Officials said the fee increase, from $15 to $100 per semester starting fall semester, will permit improved student access to computer technology.

 Students at UT-Knoxville and UT-Martin already pay $100 per semester for increased technology access.

 The new master’s program, in physical therapy, is required by the Commission on Accreditation in Physical Therapy Education. The program will replace a bachelor’s degree in the field now offered at UTC.