University System of Maryland faces over $100 million budget cut for 2026

By Sarah Sternhagen, Editor-in-Chief

Gov. Wes Moore’s proposed fiscal 2026 budget would cut over $100 million from the University System of Maryland, the state’s network of public colleges that includes Towson University. 

The proposed cuts come as the state faces a $3 billion budget shortfall. The 5% cut to USM would leave it with a $2.2 billion budget. Roughly 31% of Towson’s $643 million 2024 operating budget came from the state. 

Moore said during a speech on Jan. 15 that he believed students can climb the economic ladder without attending a four-year college. 

“I know we have some of the best four-year institutions in America here in the state of Maryland, something that we are very proud of, but we are going to end this myth that every single one of our students must attend one of them in order to be economically successful,” Moore said. “It is not true, so we will not fund like it’s true.”

Last semester, Towson faced a $1.9 million budget cut after Moore reduced state spending in the middle of the year. The university paused hiring and all Towson departments needed to reduce spending by 1%.

Moore’s budget also forecasts a 2.2% tuition increase at USM institutions next year. At Towson University that would increase in-state tuition from $11,728 to $11,986. 

Towson officials referred The Towerlight to USM officials for comment.

USM officials plan to reduce spending in personnel, operating and facility budgets as the state battles the deficit.

“The nearly 5% cut we’re sustaining will be difficult for our universities,” USM Chancellor Jay Perman said. “We’re in the business of serving people and there’s very little that we can cut that won’t have a real and significant impact on them.”

Perman estimated that workforce costs could be reduced by $45 million and impact around 400 jobs. 

He said the USM would start by eliminating vacant positions before cutting personnel, who would mostly be in contingent or part-time roles. USM would likely cut positions in academic advising, mental health, career and academic support, Perman said.

“Most of our operating budget is spent on people, spent on personnel, and so personnel must be a large part of our response,” he said. 

USM would also look to cut operating costs, including money spent on contractors and travel expenses, by $55 million, Perman said. 

The system would trim facility costs like HVAC, electricity and maintenance by $11 million, Perman said.

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