By ROB TRICCHINELLI
Capital News Service
WASHINGTON - Maryland colleges
and universities would get $1.1 billion
in state funding under a proposal
approved unanimously Wednesday by the
Board of Regents of the University
System of Maryland.
The funding for the 2009 fiscal
year represents an increase of $94.7
million from 2008, with the biggest part
of the increase, $54 million, going
toward health care and retirement
benefits for future retirees.
Another $4.8 million will go to
several schools -- the University of
Maryland, College Park; University of
Maryland, Baltimore; Towson University;
Salisbury University, and University of
Maryland University College -- to
account for changes in enrollment.
"If you don't fund enrollment
growth, the quality of education
suffers," said Clifford M. Kendall,
board chairman.
The board's finance committee
approved the request last Friday, and it
will be sent to the Maryland Department
of Budget and Management Friday for
final approval.
"This is in a way a preliminary
step in the budget," said William E.
"Brit" Kirwan, chancellor of the
university system, adding that budgetary
decisions are ongoing and tweaks may
still occur.
The $1.1 billion in state money
makes up just a slice of the system's
entire $4.1 billion operating budget,
which also includes tuition, fees,
endowment income and contracts and
grants.
The entire proposed budget is
$128 million greater than the previous
year, a 3.3 percent increase.
The board also gave Kirwan
authority to change the request if
actual spending and revenue figures come
in differently than those proposed -- a
possibility, the board said, with fiscal
uncertainties for 2009.
Changes in tax rates and
possible revenue from a state slot
machine proposal could affect the 2009
budget, said Vice Chancellor for
Administration and Finance Joseph F.
Vivona.
There is a pair of alternative
plans in place that Kirwan could enact
if budget cuts or additions are
necessary.
In case of cuts, system wide
changes in tuition and merit pay for
university system employees are the
likely result, which Vivona called
"powerful fixes."
If extra money is available, the
board said it would likely put it toward
easing tuition burdens on students.
Wednesday's approval does not
change tuition, but if Kirwan is pressed
into one of the alternatives, what
students pay could be affected.
UMCP accounts for the biggest
slice of the budget request, at $430
million -- up 8.4 percent from the
previous year.
The board also unanimously
approved an extra $5.6 million for the
construction of a new campus center at
UMB bringing the project's total to $56
million.
The project is underway now,
said university spokesman Ed Fishel, and
will likely end early in 2009.
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