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State of Maryland Budget Reductions

Dear Colleagues:

Earlier this month, former Gov. Martin O'Malley announced a $40.3 million midyear cut to the University System of Maryland (USM) to help close the state's $400 million budget shortfall in Fiscal Year 2015. The University of Maryland, Baltimore's (UMB) share of this USM cut is $6.9 million, a reduction of about 3 percent.

As UMB leaders worked through scenarios to implement this reduction, we awaited Gov. Larry Hogan's proposed FY 2016 budget. That budget, released last week, gives us longer range information essential to guiding our decision-making for the current fiscal year.

We will fully absorb our FY 2015 reduction through a hiring freeze (affecting any vacant faculty or staff position supported with state funds) and through a cut to our deferred maintenance budget. The hiring freeze will generate $5.9 million in savings, and the deferred maintenance cut will yield the remaining $1 million.

The hiring freeze gives UMB short-term savings while we complete planning for longer term reductions. As the University's schools and units implement permanent reductions, the freeze imposed on each will be lifted.

In FY 2015, UMB will not furlough employees, nor will we increase tuition. At this time, the state has not mandated either of these actions.

USM officials have begun reviewing Gov. Hogan's recommended FY 2016 budget and assessing its implications for each university within the system. The state continues to face significant budget pressures, and we anticipate that further cuts will be necessary next fiscal year. UMB leaders are working now to plan for them.

As soon as we receive USM decisions regarding the FY 2016 budget, I'll communicate them to you. I appreciate the support you've shown as UMB shares in the burden of balancing Maryland's budget while remaining academically strong and financially sound, and as we strive to mitigate the hardship borne by our students, faculty, and staff. 

Sincerely, 

Jay A. Perman, MD
President


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