KNOXVILLE, Tenn. (WVLT) -- Budget cuts are hitting your home, the businesses you depend on for employment and services, and now, for the second time this year, The University of Tennessee.

The state says UT must cut $17 million in addition to an $11 million cut approved in June.

UT President John Petersen spoke to a concerned faculty senate just hours after the cuts were announced.

Petersen says, "Certainly anything that slows you down on your strive for excellence is tough because we all want to move our enterprises forward as fast as we can."

Petersen says it's too early to determine where cuts will be made, but says in a general plan that will be submitted to the state on Wednesday, cuts will be divided proportionally by percentage to each of the UT campuses.

Petersen says, "What I think is going to happen is the state is going to reduce the amount of money that comes every month to our institutions as well as the board of regents institutions."

David Patterson is the immediate past president of the UT Faculty Senate. He says, "The entire faculty is very concerned."

Patterson, a professor of social work, says he's worried there will be further program cuts.

Patterson says, "This is going to have, ultimately I think it'll have a direct impact on graduation rates and the amount of time it takes for students to get through the university."

He says there weren't raises this year and is worried UT could lose quality faculty.

Patterson says, “It's difficult to ask people to stay on at an institution where there are no raises and there's continuing level of completion we're experiencing nationwide."

Petersen says although this is a difficult time for the state and the nation, he's confident the leaders at all campuses will stay focused on what's important to The University of Tennessee.

Petersen says, "It's going to be painful but we just need to make sure that it doesn't devastate us and we keep ourselves in a position when the economy recovers we can get back on track."

Petersen says they have committees looking into the efficiency of the university to see how money can be saved.