Adelphi, Md. (Nov. 18, 2009) -- University System of Maryland (USM) Chancellor William E. "Brit" Kirwan responded today to budget actions taken by the Maryland Board of Public Works to address the current economic situation.
As part of the board's actions, $25 million from the USM fund balance has been transferred to the state.
"Due to the current economic situation and the decline in state revenues, we understand that the Governor and the Board of Public Works have had to make some very difficult and painful decisions," Kirwan said.
"As a result, the University System of Maryland has received a significant cut. Through the System's Efficiency & Effectiveness efforts and sound fiscal management, we will continue to do everything possible to limit any impact on students' educational experience and the quality of our institutions," he said.
A fund balance reduction and transfer does not represent a cut to the USM annual operating budget. However, such a transfer impacts cash reserves for such future uses as facilities renewal projects and reserves to support both outstanding debt and debt to be issued to fund previously approved capital projects.
"The System and Board of Regents have appreciated the Governor's support through these tough times," Kirwan said. "The USM's ability to maintain the tuition freeze is an issue that the board will be evaluating."
Contact: Mike Lurie