State recommends $4M in USM cuts

The university system will likely face a $4 million budget cut and a 3 percent tuition increase after a committee of state legislators from both chambers passed a version of Gov. Martin O'Malley's budget.

The legislation still requires approval from lawmakers and the governor.

Last night's vote, which approved a $34 billion operating budget, stands to end three consecutive years of furloughs, instate the 3 percent tuition hike O'Malley had recommended and mandate that the possibility of merging College Park with the University of Maryland, Baltimore, be explored.

The approval of a $4 million cut from the University System of Maryland's budget was a far cry from the $8.1 million the House of Delegates had recommended and the $2 million advocated by the state Senate, but state and university officials said the number is a compromise they can live with.

"Like every other state, it's a very difficult budget session," university lobbyist Ross Stern said.

To balance the state's budget, which was estimated to face a multimillion-dollar budget shortfall, a committee comprised of members of the House and senate negotiated to reach a final product to send back to lawmakers.

Stern added that it's too soon to tell how the cuts will be apportioned throughout the system.

"It's too soon to say where cuts will come from," he said. "We're gratified that, in the end, they chose to compromise and take a smaller cut then the larger proposed, so we're very happy about that. We were fighting to make sure we didn't get that full $8 million cut."

If approved by the General Assembly and O'Malley, the recommended 3 percent tuition increase will be voted on by the Board of Regents — the 17-member body of gubernatorial appointees that oversees the university system.

Although the board can vote to increase tuition further, it cannot vote to drop it below 3 percent.

"Given the very difficult budget climate, it shows the commitment to keeping higher education affordable in Maryland," Stern said of the in-state tuition hike, which is equal to last year's. "I think most everyone was anxious to try and keep the tuition increase at 3 percent and not have it go higher."

The state committee also voted to withhold $1 million from the system's 2012 allocation until a study on the proposed merger of this university with UMB has been completed. State Senate President Mike Miller (D-Calvert and Prince George's) proposed the merger and asked that the study be finalized by Dec. 15.

The wording of the study's purpose was also changed yesterday. Originally, the proposal asked that the university system analyze how to properly join the two institutions; now, the wording calls for the study to weigh the pros and cons of a possible merger.

"This is the General Assembly's way of making sure the study's done promptly and correctly," Stern said.

State Sen. Jim Rosapepe (Prince George's and Ann Arundel), who represents College Park, noted the committee's decision to recommend ending the three consecutive years of furlough days for state employees was also a major victory for this university's employees.

The 3 percent increase is "good for students, ending the furloughs is good for faculty and staff," he said, adding that a proposed reduction in pension plans for state employees was a step in the wrong direction.

"The bigger disappointment in the budget to me is that they disagree to reduce the pension plan for state employees, so that's going to cost faculty and staff some money; so, that's unfortunate," Rosapepe said. "It's not something that I supported, but it's something that they agreed."

Stern said that it's too soon to tell how exactly the deflated pension plans would affect the university's faculty and staff recruitment, as the pension plan new employees would receive will be less than those of previous years.

The House also approved a $3 billion capital budget last night. The senate now must sign off on that legislation, which would fund major investments.

roubein at umdbk dot com