O’Malley’s budget allocates $5.4B for higher education

Even though students will likely face a 3 percent increase in tuition, Gov. Martin O'Malley proposed a budget that provides alternative increases in higher education, including more state financial aid and funding for university infrastructure projects — a move that has drawn praise from many university officials and state lawmakers.

O'Malley once again opted to "buy down" tuition by adding $9 million in state funds to cap increases at 3 percent and adding more than $1 billion to the University System of Maryland budget. The proposed budget — which must be approved by the General Assembly before being finalized — sets aside $5.4 billion for higher education purposes to maintain college affordability, said O'Malley spokeswoman Takirra Winfield.

"The main thing has been the tuition and making sure tuition remains the same," she said. "We hope the General Assembly recognizes the importance of higher education."

Although students will likely have to pay higher tuition rates for the second year in a row after a four-year tuition freeze, university President Wallace Loh said the raise is minimal compared with other institutions, such as California State University, which raised its tuition 29 percent in the last year and a half.

"This university is extremely, extremely grateful to the governor for keeping tuition affordable," Loh said. "First he had no tuition increases, and then given all the increasing costs, he has kept it a modest, and I think affordable, 3 percent."

If approved, the budget will allocate $2 million toward need-based financial aid, $1.2 million into curriculum research, $1 million toward the commercialization of research and $500,000 toward funding projects for $500,000 toward funding projects for the disabled, Loh said.

Additionally, O'Malley proposed investing $10 million in university infrastructure projects. Loh said he expects the university to continue receiving these funds over the next several years — noting the funds were an "important first step" as Facilities Management officials grapple with $750 million worth of deferred maintenance backlog projects.

"All our buildings look beautiful but, inside, as you know, they're crumbling," Loh said. "Because some of them are 100 years old, the roof is leaking, water's in the basement and so on and so forth."

To continue keeping higher education affordable, O'Malley proposed raising state revenue through a multitude of ways, including adding a gas tax, restructuring the tax code and potentially taxing electronic transactions.

"He basically proposed the revenue raises just to fund education," said Sen. Jim Rosapepe (D-Anne Arundel and Prince George's). "He has basically prevented the university from big budget cuts."

But because students will incur additional finances under O'Malley's proposed budget, college affordability in the state is overshadowed by these added financial burdens, said Del. Susan Aumann (R-Baltimore County).

"Even though the tuitions are only going up 3 percent, there are other increases in costs," she said.

Aumann said state residents have felt the impact of additional taxes and fees under O'Malley's budget, and instead of raising revenue, the state should pursue austerity measures to balance the budget.

"I think he's going in the wrong direction," she said. "In every household there's been belt-tightening; I think the state can do the same."

bach@umdbk.com