USM Budget Compromise

With the legislative session in Annapolis on Monday, Senate and House leaders have been hard at work coming to a compromise on budget issues, including funding for the University System of Maryland.  In his original budget for higher education, Governor O'Malley proposed at $28 million increase for the University System of Maryland, $16.9 million dedicated to offsetting lost revenues from a tuition freeze for in-state students.  Recall, the House and Senate were at odds on cuts from the Governor's original budget, in an effort to offset lower-than-expected tax revenues:

• House - $10.8 million from annual budget; $10 million from fund balance
• Senate - $5.4 million from annual budget; $4 million from fund balance

The Budget Conference Committee reconciled the budget late Tuesday night.  Here is the outcome:

• $5.8 million annual budget; $9 million from fund balance

It's questionable as to whether this $14.8 million cut will afford the system a tuition freeze again this year.  The Board of Regents will discuss and decide on this issue in coming weeks.  More to come on the Governor's federal stimulus supplementary budget...