Towson University faces a $15.2 million budget cut for 2026

By Sarah Sternhagen, Editor-in-Chief

Towson University saw a roughly $15 million budget cut for the 2026 fiscal year, stemming from a $3 billion shortfall in state funding.

The reduction was a result of the University System of Maryland, or USM, trimming about $155 million from its fiscal 2026 budget. Towson is a part of that network of mostly public four-year colleges, which receive taxpayer dollars. USM’s governing board voted on the system budget cut in June. 

USM cut nearly $2 million from Towson last year as Maryland grapples with a state budget deficit. State spending is expected to outpace revenue, with the deficit estimated to reach $6.2 billion by 2030. 

State funding makes up a third of Towson’s budget, according to Ben Lowenthal, Towson’s chief financial officer and senior vice president for finance. 

Most divisions of the university saw between a 2% to 4% cut, according to Lowenthal. Academic Affairs, which maintains one of the largest budgets within the university, had a 2.5% reduction to its $238 million budget, he said.

Towson officials knew the USM cuts were coming down the pike and reduced budgets began on July 1, Lowenthal said.

Lowenthal said Towson tried to minimize budget cuts to its academic programming.

“We did not do what is known as the ‘peanut butter approach,’ where we just did a straight percentage reduction across all divisions,” Lowenthal said. “We were strategic about it.” 

But those cutbacks aren’t enough to completely erase the $15.2 million shortfall. Towson implemented multiple ways to make up the lost funding, one of which is continuing the hiring pause from 2025’s mid-year cuts.

The hiring pause means Towson will keep vacant positions open for six months before filling them. Officials will also reassess open positions to see if recruitment is necessary.

The hiring pause already “saved considerable funds,” Towson President Mark Ginsberg said in a May public statement. 

Towson is not considering cutting employees at this time, Lowenthal said. However, USM’s board voted at a May meeting to allow its institutions to implement furloughs and “temporary salary reduction” plans to deal with the funding shortfalls.

USM Chancellor Jay Perman said in a video message in June that “personnel actions cannot be taken off the table” to address the funding gaps at some colleges. 

“To those affected by these cuts, there’s little I can say that makes it any better,” Perman said. “I am sorry that this is happening. It’s not reflective of your important work.”

Towson also increased tuition this year in light of funding concerns. Non-resident undergraduate students pay 5% more this year, and in-state students pay 4% more. 

That means in-state students pay $12,186 this year compared to $11,728 last year and out-of-state students pay $31,332 instead of $29,820. Towson is also contemplating enrolling more students, which would bring in more tuition revenue, Lowenthal said.

Lowenthal said the increased revenue from increased tuition and higher enrollment can cover between $1 million to $2 million of the $15 million shortfall.

Despite the budget cuts, USM still recommended a 1% cost of living increase for full-time university employees which started on July 1. It’s a decrease from last year’s 3% recommendation, according to USM’s records. 

Ginsberg said in June that he and his 15-member cabinet will dedicate the money from their 1% cost of living increase to student aid.