A Message from President David J. Ramsay to the UMB Community
August 26, 2009
Recent stories in the Baltimore Sun and other media outlets have described budget actions taken by Governor O'Malley and the Board of Public Works. Attached is a communication from Chancellor Kirwan that describes the effects of these budget actions on the University System of Maryland. As the Chancellor reports, the total state budget reduction to the University System now amounts to nearly $94 million.
Included in that $94 million state budget reduction is a temporary salary reduction, Systemwide, of $26 million. This action will parallel, but is NOT identical to the salary reduction plan for state employees that has been described in the media. Campuses will have some flexibility to tailor plans to meet local needs.
As of this writing, we have not yet been informed of our proportionate share of this latest cut, but based on past experience, we normally are required to absorb about one-fifth of the total System cut. We are working to develop, for approval by the Chancellor and the Board of Regents, a tiered salary reduction plan that will be structured in a way that reflects differences in compensation levels and will provide our share of funds to be returned to the state.
Know that the Deans and I join with Chancellor Kirwan and the Board of Regents in being grateful to you for your dedication and commitment to this university. ýWe have been through periods of adversity in the past, and that has not stopped us, or even delayed us in our march toward excellence. I thank you in advance for your cooperation and continued service. I will keep you informed.
David J. Ramsay, DM., DPhil
University of Maryland, Baltimore
A Message from Chancellor William E. Kirwan to the USM Community
August 26, 2009
With the national recession continuing to weaken Maryland's fiscal situation, the Board of Public Works today approved Governor Martin O'Malley's recommended cut of $454 million to the state's FY 2010 budget. The University System of Maryland's share of the reduction includes a transfer of $20 million from our fund balance to the state. It also includes a $10 million reduction to our state-appropriated funds, which will require eliminating vacant positions as well as decreasing funds for facilities renewal, student financial aid, and student services.
In addition, the statewide budget action includes temporary salary reductions (for FY 2010 only) for state employees. For USM, this action totals $26 million, which we will accomplish through a tiered furlough plan and other salary adjustments. While we are still formulating details, I am confident that our actions will mirror the approach we took last year to mitigate the impact on employees at lower salary levels.
This latest round of cuts to our FY 2010 budget, following the $37.7 million reduction announced last month, brings USM's total FY 2010 reduction to nearly $94 million.
Fortunately, state officials have granted USM flexibility in handling the reductions. Our ability to use our fund balance, while maintaining it at a level needed to protect our financial stability, is allowing the university system to mitigate somewhat the impact of the reductions.
However, there is no escaping the fact that these cuts-especially the temporary salary reductions and decreases in student aid-come at a very difficult time for our employees and the students we serve. While we understand that the university system must share in the sacrifices being made statewide, these reductions will be painful for individuals and a challenge for the entire university system as we work to advance access, affordability, and excellence.
Please know that the USM Board of Regents and leaders across the system appreciate all that you do on behalf of the state's public higher education system. Your dedication and commitment have helped to position USM as a national model of excellence, effectiveness, and efficiency. As a community, we will get through these tough economic times.