BALTIMORE — The University System of Maryland (USM) is prepping for significant funding cuts.
USM received approximately $870 million in state funding during fiscal year 2025, accounting for nearly one-third of their annual revenue.
Staring down a $3 billion state budget deficit, the General Assembly voted to significantly reduce that amount in Fiscal Year 2026, beginning July 1.
On top of that, the federal government is cutting back on future contracts and grants for universities nationwide.
This fiscal year alone, the University of Maryland raked in $483 million in federal funding.
In January, WMAR-2 News reported on the feds termination of millions in University of Maryland Baltimore research grants.
As result of the anticipated cuts, USM is facing inevitable revenue loss.
Last week, USM's Board of Regents passed a resolution authorizing employee furloughs and salary reductions.
"The Board of Regents has determined that it is in the best interest of the USM institutions, the USM Office, and the USM Regional Higher Education Centers to authorize the option of personnel actions such as furloughs, temporary salary reductions, or equivalent salary-related measures to support institutional financial management," the resolution states. "The Board of Regents regrets that such measures may be necessary."
While the resolution calls for pay reductions lasting through June 30, 2026, other conditions noted in the resolution could further impact employees.
Some of those conditions are listed below.
- If a furlough plan is implemented, accrued annual, holiday, or personal leave may be used only if the institution’s closure days exceed an employee’s furlough obligation. Otherwise, such leave may not be substituted for furlough days.
- If a salary reduction plan is implemented, accrued leave may not be used in lieu of the salary reduction.
- Overtime or compensatory time may not be granted to offset furlough days.
- Under federal law, employees may not work on a furlough day, whether on-site or remotely, except in the event of an emergency.
- Employment-based benefits will be reduced only to the extent required by law.
Due to furloughs potentially impacting staffing levels, the resolution also doesn't rule out certain institutional closures on a limited basis,
"The Plan may include institutional closures for a limited number of days to achieve cost savings, provided that essential services—including class schedules, critical student services, and patient care—are maintained," the resolution reads.
It's unclear how many employees or campuses the resolution will ultimately affect.