**TAKE ACTION** Support Full Funding for Higher Education

Funding for USM institutions is at risk!  The House Appropriations Committee voted to decrease funding by $20.3 million last week.  Take 2 minutes to let your elected representatives know how important it is to support higher education (if you are an out-of-state student, feel free to use your campus address).

Click this link to TAKE ACTION to send an email message to your legislators letting them know that you support full-funding of the Governor's budget.  The sooner you send, the better.  Forward this link to your friends, parents, neighbors, and professors so that legislators hear how important funding higher education is (they can use this specific link).  It only takes a few minutes by simply entering your address and editing a pre-drafted message.  Be sure to let your legislators know your role in the USM (student, faculty, etc.).

A cut of $20.3 million will ensure tuition is not frozen for in-state undergaduates, lower the quality of programs for all students, and could threaten pay/job security for faculty and staff.

If you have further questions, please email me ASAP at joshmichael@umbc.edu or call me at (410) 294-8581.

Read this message from the USM website:

Support Higher Education Funding  Oppose Legislative Cuts to Higher Education

Governor O’Malley’s FY 2010 budget proposal for the University System of Maryland supports the overarching goals shared by the state and the University System of Maryland:

• provide access to high-quality and affordable programs and services;
• ensure that the state’s public higher education system sustains its critical role in advancing Marylanders’ quality of life—intellectually, economically, socially, culturally, and in areas related to health.

The Department of Legislative Services is reccomending the General Assembly cut the USM funding by $5.7 million dollars and possibly more. Ask your legislators to reject this cut and fully fund higher education to maintain the quality, affordability and accessability of our public universities.

Tuition Freeze becoming a reality

The announcement of Governor O'Malley's intention to fully fund the Thornton calculations for K-12 education during the next two years.  Why does this matter to higher education, you ask?

What's not said is what is important in this article.  In funding K-12 education above the originally proposed levels, the Governor will surely have the funds to fully support his proposed dollars in the operating budget for the USM.  The Governor has relied upon funding from the federal government to support his operating budget.

So, the tuition freeze is becoming more and more likely each day.  The announcement of full-funding of K-12 this year is a sign that funding should arrive for higher education to support a funded tuition freeze.

O'Malley's FY 2010 Budget Proposed, Tuition Freeze Included

The Governor presented his proposed FY2010 budget today.  Specific to higher education, the Governor has included a tuition freeze for in-state, undergraduate students for the fourth straight year.  As highlighted on The Sun's Maryland Politics Blog, this is the first time in 25 years that expenditures will shrink for the Maryland state budget (by 1.3%).  The Governor is making his pitch loud and clear that affordable higher education is a priority of his administration, increasing funding for colleges amidst major state cutbacks.  This trend in investment is unique, whereas most Governors view higher education as true discretionary cost that should be cut during hard fiscal times.  Such is the case across the United States today, and was the case in 2003 under the Ehrlich Administration.

Higher Education Finances and What to Expect

Inside Higher Education highlights broad-based budget cuts across the nation. Salisbury President Janet Dudley-Eshbach warns of furloughs and mid-year tuition increases. The Chronicle of Higher Education highlights expert analysis of the tough consequences for higher education in the expected recession over the next two to three years.

The economy is in poor shape, and higher education will suffer. Fiscal pressures will come from a variety of areas:
- decreased state funding support for the operating and capital, due to declining state revenues
- decreased enrollments because of a lack of income and access to loans (both potential and current students); resulting in decreased tuition receipts

Undoubtedly, the more states cut their budgets, the more higher education will be cut. And so, to offset these lost revenues, higher education institutions will be pressured to either cut expenditures and services or significantly raise tuition. Each institution will likely work to balance the two budget-balancing strategies in the way to maintain prestige/quality and accessbility/affordability.

Next month, the Maryland Board of Revenue Estimates will examine the expected revenues for the next fiscal quarter for FY09. Possibly, the Board will identify the need to cut more from the budget. Do recall, the state experienced budget cuts amounting to around $350 million after the last revenue estimates were evaluated (higher education saw a $35 million cut, or 10%). Surely, with the further downturn in the economy over the past few months, we could expect more cuts.

A few things to consider:
- higher education occupies about 21% of the discretionary portion of the state budget (the portion of the budget that is not prescribed through legislative mandate)
- higher education saw 10% of the last round of budget cuts
- higher education is often seen as a non-essential expenditure

So, I presume that while Governor O'Malley has consistently provided significant financial support for higher education, he will be pressured more and more through fiscal realities to significantly cut higher education. In other words, the more money that is cut from the budget in Maryland, higher education will likely recieve an increasing percentage of the budget cut.

So then what happens? Tuition increases or service cuts. Take your pick. This can play out in a few ways:
- mid-year tuition increases
- larger class sizes
- decreased course offerings
- furloughs for staff
- hidden student fees and surcharges
- closed and limited student services (i.e. early closing hours for library)
- decreased and enveloped financial aid
- increased prices on campus sales (i.e. food, textbooks, t-shirts, etc.)
- fewer student job opportunities
- fewer research opportunities
- less research time for faculty


So, what are you willing to sacrifice? How do you suppose me and other policy makers balance affordability and quality?

Student Response to Slots

Students across the USM are responding in a variety of ways to representative student groups taking positions on Referendum Question 2 on the Maryland ballot authorizing slots.

• The Towson Towerlight highlighted student discontent from the Black Student Union and other groups in a recent article.
• The Diamondback highlighted in an article today the inaction, despite action by other student groups, of the UMCP SGA.
• The Retriever Weekly highlighted the SGA's action in an article and opinion piece.
  
• The UMBCUnderground Blog discussed the SGA's position a few days ago in a post discussion 
• The USM Student Council endorsed the referendum (6-1-4) in a letter to Chancellor Kirwan.

In general, student groups have been split, about 2/3 in support, and 1/3 in opposition.  Many have felt uneasy supporting a position either way and would have preferred to take no position (as did UMCP SGA).  Others felt a strong obligation to take a stand.

Has any of this impacted your vote on question 2?

Budget Cuts Finalized; $35.4 million cut for USM

Governor O'Malley brought a final list of budget cuts to the Board of Public Works today.  Among cuts, the Governor cut the state contribution for the University System of Maryland by 1.5%, totalling $15.6 million.  Notably, the USM also recieved a $20 million cut from its general fund.  Other cuts in Higher Education include:

• Community College Local Aid- $8.2 million
• Maryland Higher Education Commission Operations and Scholarships- $8.9 million

The USM saw greater than expected cuts; but in relation to other departments and the USM's share of the discretionary budget, the USM fared relatively well.  These cuts are part of a nearly $300 million budget cut proposal, as highlighted in an article in The Sun.

Budget Woes in Maryland

Budget revenues are down in the state as a result of a faltering economy, and so the Governor is considering mid-year fiscal 2009 budget cuts. Governor O'Malley will propose approximately $300 million in budget cuts. The Sun has highlighted a list of these possible cuts.

The Sun reported that the USM will receive about $30 million in cuts, $10 million from the base operating budget and $20 million from the "cash-on-hand" fund balance. Community colleges are set to receive $16.3 million and independent colleges will receive a 25% cut of state funds of 8.4 million.

While it seems like the USM is taking a significant cut, we are fairing well in the broad picture of cuts. The USM encompasses 22% of "unrestricted funding" of the state budget, and will only take about 11% of total cuts.

Of course, the Governor may very well propose additional cuts beyond these estimates tomorrow in his final proposal, considering the recent decline in the economy. Also, revenue estimates may be down again later this year--we should embrace to consider further midyear budget cuts down the road.

On a related note, the Chronicle of Higher Education has written a story about the USM's unique strategy of cutting the fat in the budget and increasing efficiencies through the Effectiveness and Efficiency Initiative. Legislators have commented that this strategy has increased their trust and confidence in budget proposals from higher education.

Presidents of USM institutions will be faced with tough decisions after tomorrow when the first round of budget cuts are approved.

**Also note an article in the Diamondback highlighting a report from the Department of Legislative Services yesterday, which recommended that policymakers seriously reconsider another tuition freeze.

USM Student Council Meeting 10/12 Meeting

The USM Student Council met Sunday 10/12. Council members considered a number of issues. Here is also my report, highlighting a number of pressing issues. Here is a highlight of the meeting:

• Election of Officers- David Walker (Bowie), Chair; Brady Walker (UB), Vice Chair; Scarlett Corso (UB) Secretary/Treasurer
• The Council discussed whether or not to take a position on the slots referendum, and ended up supporting the initiative 6-1-4. Leadership will draft a letter to the Chancellor to express the opinion of students.
• Brady Walker (UB) plans to develop a "platform" for the Council on various issues to enhance advocacy efforts.
• Michael Castello (UMBC) is working with Don Spicer and Andy Clark from the USM to proactively address issues on filesharing.
• The Council discussed issues of diversity and plans to research how campuses address diversity conflicts and what resources are available for students.
  

Here is a brief excerpt from my report, highlighting the current fiscal position for higher education in Maryland:

The Governor will propose mid-year budgets cuts (FY09) to higher education to the Board of Public Works this coming Wednesday, October 15. The Sun reported that cuts might amount to $30 million, with $10 million from the operating budget and $20 million from the general fund balance. The Governor aims to cut $423 million from this year’s budget on Wednesday to make up for lower than expected tax revenues. This cut could expand before Wednesday, and we might very well see more mid-year budget cuts down the line in FY09. The decision on the slots referendum will likely impact the Governor’s cuts in coming months.

Planning for the FY10 operating budget has begun. The Department of Budget and Management has planned for a 6.4% increase in state fund support and a 4% increase in tuition. These numbers will undoubtedly change in coming months as policymakers get a better handle of projected tax revenues.

Please post any comments or questions and I will be sure that I find you the answer.

Rainy Days: Budget Shortfalls for Maryland

The state estimates today released that revenues will fall $432 million short this year (Letter from Board of Estimates), and could expand to $950 million next year (Baltimore Sun Article). The Board of Public Works plans to immediately put the breaks on a number of capital projects, many of which could affect you. In this fiscal year (2009 Capital Budget Draft), the University System of Maryland is slated to receive the second greatest amount of capital dollars, right behind public school construction, with a nearly $144 million allocation. The Governor has provided a response.

Also, check out the statement by Comptroller Peter Franchot.

Implications could be rough for higher education. First, capital projects could get hit, and later, we could suffer in the operating budget.