Board Chair and Chancellor Thank Gov. Ehrlich for his FY 2006 Higher Education Budget,
Also Ask Legislators to Set Aside HB 1188 Veto Discussion and Accept the Governor's Budget
ADELPHI, Md. (January 6, 2005) —Maryland Governor Robert L. Ehrlich, Jr. announced today that he will allocate $800 million in state funds for the University System of Maryland (USM) when he presents his fiscal year 2006 budget later this month. The allocation is a 5.7 percent increase over the university system's FY 2005 state funding of $757 million. In making the announcement, Gov. Ehrlich reaffirmed his commitment to provide excellent higher education opportunities to a growing number of Maryland students. "I am extremely pleased with Gov. Ehrlich's increased funding for the University System of Maryland in a very difficult budget climate," said USM Chancellor William E. Kirwan. "The Governor and I first discussed funding for the system two years ago. At that time, he promised to increase system funding if we demonstrated a high degree of effective and efficient use of our resources. Furthermore, Gov. Ehrlich has said that his commitment to invest in higher education will continue as we advance our effectiveness and efficiency efforts. "Under the leadership of the USM Board of Regents, we are streamlining our administrative and academic processes through structural changes to our operations. These actions are enabling us to redirect funds to our highest priorities: quality, access, affordability, and accountability. I am delighted that the Governor has recognized our accomplishments and is providing this substantial boost." The Board of Regents has used these priorities—quality, access, affordability, and accountability—to guide its review of proposals for increasing system funding and for moderating tuition increases. "I am grateful and impressed by the Governor's approach to the system's budget needs," said Board Chairman Clifford M. Kendall. "Thanks to the Governor's actions, we will be able to give our students and their families a substantial break from the hefty tuition increases of the past few years. Gov. Ehrlich has provided general funds for the system's FY 2006 budget that are essentially equivalent to the funds identified by the Maryland General Assembly in House Bill 1188." (Passed during the 2004 legislative session and vetoed by Gov. Ehrlich, HB 1188 called for USM state funding increases of 3.4 percent in FY 2005 and of 5 percent in FY 2006 and in FY 2007, funded by general funds and a corporate tax increase. The bill also would impose a statutory cap of five percent on annual tuition increases at USM campuses for the same period.) Chairman Kendall also said, "The Governor's FY 2006 plan preserves the board's authority to set tuition." The board plans to vote on the fall 2005 tuition at a special meeting that will be scheduled for late January. At that meeting, Chancellor Kirwan plans to recommend a tuition increase for in-state undergraduate students of no more than 5.9 percent. "The past three years have been a period of great uncertainty and apprehension for our students, their families, and our faculty and staff," Chairman Kendall added. "The public debate about higher education funding and tuition has been difficult and sometimes divisive for the USM community and for the state. Moreover, it is potentially harmful for the long term as the university system seeks to serve the state, maintain its national eminence, and provide affordable opportunities for Maryland students." "Given all these factors, and with great appreciation for the efforts of everyone involved in restoring funding to higher education," Chairman Kendall concluded, "I respectfully suggest that it is best for our students and Maryland higher education, to set aside discussions of overriding the veto of HB 1188, and for the General Assembly to adopt the Governor's FY 2006 higher education budget." Added Chancellor Kirwan: "Since I returned to Maryland in 2002, I have worked with the board and the institutional presidents to achieve a consensus among state leaders about the importance of investing in higher education. From the beginning, it was clear that USM and our state leaders share the goal of preserving and expanding the university system's vital role as an economic engine for the state. "Gov. Ehrlich's budget proposal presents an opportunity to achieve that consensus, which bodes well for our state's future. Therefore I join Chairman Kendall in respectfully asking the General Assembly to set aside discussion of HB 1188 and to approve the Governor's FY 2006 budget for higher education." Chancellor Kirwan also noted that the allocation for USM builds on the Governor's and General Assembly's strong support of the university system's capital budget, of legislation to give the system more autonomy, and of increased investment in need-based financial aid. "I look forward to working with the legislature to adopt the Governor's budget," said the chancellor. "Working together, we can ensure that the University System of Maryland—one of the nation's leading higher education systems—will continue to be a major engine for the state's economic growth and a vital force for advancing the quality of life for all Marylanders."
Contact: Anne Moultrie
301.445.2722
E-mail: amoultrie@usmd.edu