This is a developing story.
In response to the pandemic’s major financial impact, the University of Maryland, Baltimore County will be implementing a temporary salary reduction plan for those staff and faculty earning $100,000 or more. The reductions will be spread across the remaining available pay periods of the fiscal year and range from 1.5 percent at the lower end of that salary range up to 15 percent for President Freeman Hrabowski.
This announcement follows the report that the University System of Maryland projects a negative financial impact on the system of at least $500 million compared to the System’s original 2021 fiscal year budget.
Within the cuts to education, the State of Maryland cut the USM base budget appropriation by $117 million. UMBC’s share of the reduction is $11.8 million. Associate Vice President of engagement in the Office of Institutional Advancement, Lisa Akchin stated that due to UMBC’s choice to return to campus with far fewer students in residential halls, UMBC “must now manage through a large drop in auxiliary (non-tuition) revenues.”
When the pandemic forced many students to return home in mid-March, UMBC returned $18 million in room, board and other fees to students for a portion of the spring semester and waived most fees in the fall. According to the announcement, the loss estimated for Fall 2020 is $28 million.
Earlier this year, USM announced the Board of Regents had voted to freeze tuition and fee rates, which also contributed to the loss of revenue, along with the drop in enrollment this year at UMBC. In addition, due to the cancellation of programming campus-wide through December, the financial loss is estimated to be approximately $1 million.