University of Maryland News

From President Mote

Dear University of Maryland Family:

As we wind down the fall term and prepare for a well-earned holiday respite, I thought it timely to bring you up to date on our budgetary challenges and what we might expect during the first part of the new year.

Understandably, essentially all faculty and staff are troubled by furloughs, growing workloads and reduced departmental budgets. Actually, we all are. Students are anxious about class availability and cuts in services; parents are worried about the cost and quality of their children's education. Major reductions in the University's state budget have had painful consequences for our campus, and I regret deeply the toll they are taking on you and your families. The stress that surrounds budget-related decisions and uncertainties is significant. And a broader campus participation in budget processes can improve understanding of our circumstances and decisions. A call for transparency and clarity about the budget has been heard.

On November 18th we received our most recent budget reduction, a $9 million cut in the FY10 budget. Rather than initiating another round of unit reductions, central funds, obtained from fuel/utility savings and tuition generated by higher than expected enrollments, were used to cover this reduction. No jobs were lost. However, this $9 million loss of one-time funds has consequences for "what we won't do" rather than "what we must stop doing." The loss renders us less able to hire temporary faculty, students and staff, provide additional financial aid, add additional course sections, renovate aging facilities and fund one-time projects. This was the fifth budget cut delivered to the campus since July 1. The total of these cuts, summing all one-time cuts, furlough savings and base reductions, now exceeds $48 million since July 1. And that is in addition to the $26.5 million in total reductions in the previous year.

The State's economic downturn is expected to persist through FY11 (July 1, 2010 through June 30, 2011). The State will report its budgetary expectation in the Governor's FY11 budget which will be presented to the Legislature at the end of December or in early January. All predictions call for an overall State budget reduction from the current FY10 budget of between $1.2 billion and $1.5 billion. We cannot reliably predict our campus's share of the State's reduction, but we expect additional, difficult budget reduction decisions. We are committed to making this process as transparent as possible and using our strategic priorities to guide us. All of us do have a role in this process. Campus leaders—from the president to the directors and unit heads—must engage with faculty, staff and students to ensure the opportunity for all voices to be heard, just as we did in the strategic planning process. Open communication and transparency in priority setting are essential for the campus.

My leadership team will be taking the following steps to increase your access to budgetary information and to enhance understanding of budget-related issues:

Budget Planning. I have asked vice presidents for FY11 budget plans by divisional areas: Academic Affairs, Administrative Affairs, Student Affairs, Research, University Relations and Information Technology. Because our budget target is as yet unknown, their plans will consider a range of percentage budget reductions (e.g., 2%, 4% ) that reflect their divisional priorities, and they will also present ideas for revenue enhancements. Each vice president will inform and engage with his/her division for budget planning and for garnering input to budgetary recommendations. For example, in Academic Affairs, deans, department chairs and directors will be asked by the provost to work with their units to obtain input on incremental budget reduction plans.

Budget Central Website. The Budget Central website is being redesigned for more robust communication about budgetary planning and decisions. This user-friendly site will provide timely information including: a synopsis of the University budget, current budgetary challenges, flowcharts on budgetary decision making and recent budgetary decisions. The website will encourage engagement and expand our current web feature on budget solutions, showcasing individuals and groups who have implemented successful budgetary strategies.

Town Hall Meetings. The vice presidents and I will hold town hall meetings, similar to the one hosted by the President's Office and University Senate Executive Committee in the fall, to update you on budget information, answer questions on the budgetary issues and seek your advice and counsel. Vice presidents will also hold open meetings with constituents of their divisions, as appropriate.

Virtual Fireside Chat. We will pilot a virtual fireside chat, suggested by students at one of my student lunches, where community members can send in questions to me and share their budget ideas and priorities at president@umd.edu. I will respond to as many as possible in a website video beginning with the new semester and continuing as long as it is useful.

Senate Executive Committee and Shared Governance Groups. I will continue to involve the Senate Executive Committee in the budget discussions and seek its advice on critical issues. Each vice president has an advisory group for similar exploration and counsel on budgetary and strategic issues. For example, the Academic Planning Advisory Committee (APAC) will seek additional input from students and staff to ensure their constructive ideas and concerns are taken into consideration before any major programmatic changes are recommended.

All-Campus Emails. I will continue to send community emails from time to time that alert you to important information about our budgetary circumstances.

I am heartened by our community's extraordinary resolve to persevere in keeping the university strong. With guidance from our Strategic Plan, we have maintained the core academic enterprise and access to it for our students. Our faculty has raised record research funds, and we have generated new revenue through entrepreneurial programs, raised more than $350,000 of emergency financial aid for needy students and helped Maryland businesses prosper. And we have minimized layoffs by reassigning staff to jobs vacated through attrition.

I will be in contact again when we have budget news from the State. I pledge to do all that I can to create the climate of trust, communication and transparency that is needed for us to go forward together. We will emerge from this economic downturn as a strong, united and nimble university prepared to capitalize on the new opportunities that await us. I thank you for all you do to maintain the momentum of this great university. And finally, I offer you and your family my best wishes for the holiday season and the New Year, which I predict will be better than this one has been.

Yours sincerely,

C. D. Mote, Jr.
President

---

This note was authorized for distribution to University of Maryland Community by: President C. D. Mote, Jr.