- #1
Cyrus
- 3,238
- 17
Dear University of Maryland Family:
On Wednesday, July 22, the Board of Public Works approved Governor
O'Malley's recommended cut of $281 million from the State's FY10 budget
that started on July 1, 2009. My goal here is to inform you about the
effect of that reduction on the University of Maryland.
Of the State's reduction, $37.8 million will be taken back from the
University System of Maryland, and our share of this reduction is $14.5
million, with $6.8 million to come from our base budget and $7.7 million
coming from fund balances. The Baltimore Sun reported that the Governor
will bring an additional $420 million or greater reduction to the Board
of Public Works before Labor Day, and that it will target State employee
compensation among other reductions. Regrettably, the State's finances
have worsened from those used to prepare its FY10 budget. The Director
of Policy Analysis for the State Department of Legislative Services
projects the State budget shortfall will increase to $1.5 billion in
FY11 when federal stimulus funds will no longer be provided. Our campus
must respond right away to the July 22 recall and begin preparation for
the probable additional reductions for FY10.
Over the last two fiscal years, FY08 and FY09, we have been buffeted by
base funding cuts of $12.6 million plus one-time cuts, including
furloughs, of $21.4 million. Our FY10 State General Fund budget began
this fiscal year at about $420 million. However, that budget was not
sufficient to meet our mandatory obligations. Our necessary response
was a 2.5% ($12.1 million) base reduction in the campus working budget.
That initial base shortfall has now risen to $18.9 million for FY10
because of the July 22 base cut.
Given these budget reductions over the past two years, there are no
excess funds in our budget and cuts must be made. Cuts will not be
taken "across-the-board." We will be guided to the extent possible by
the priorities of our strategic plan and by our goal to strengthen our
core mission. It is prudent to re-institute an immediate hiring
freeze. Instructions on its implementation have been sent to the Vice
Presidents. Some reduction in our workforce is likely through hiring
restrictions, retirements and other separations. These can be
remarkably and personally painful for us all. When they occur, we will
seek to treat members of our community with dignity and respect through
any transition. Time is needed to redesign operations so that they can
continue to provide the services needed.
Great... anyone else in Academia getting such emails?