Office of the President
Campus Messages

Financial Update -- Temporary Salary Reduction Ends

Letter from President Darryll J. Pines

By Darryll J. Pines

Dear University of Maryland Campus Community,

Today, we write to share the latest update that the COVID-19 pandemic has had on the university budget. We want to remind you that our decisions are guided by a commitment to sustain the excellence of our education, research and service missions, protect the health, safety and well-being of our campus community, and minimize the impact to the most vulnerable of our community. We are extremely grateful for all the work that many of you have done during these incredibly challenging times in our university’s and nation’s history.

Update: Impact of Pandemic on University Budget

The effects of COVID-19 on our Fiscal 2021 campus budget remain significant but are now projected to be less from the estimated $292 million shortfall announced in our September 10 email. This budget shortfall is approximately divided 1/3 to state supported losses, and 2/3 to those losses associated with auxiliary units and other non-state activities. During the past two months, we have continued to monitor the impacts of the pandemic on the university’s budget, our revenues and expenses, and the impact of our actions to lessen financial shortfalls. This is done in consultation with campus stakeholders, and our guiding principles and priorities. As stated previously, the long-term financial health of the university remains strong.

The ongoing review of the University of Maryland and State of Maryland budget situation has enabled us to further revise our short-term plans and actions. Positive factors include the stabilization of on-campus activity (at reduced levels), successful budget mitigation and funding efforts -- with credit to all Terps for following the 4 Maryland Healthy behaviors and reduced spending -- and recently announced state budget outlook improvements have contributed to an improved overall budget situation for FY21. As a result, we have made the decision to end the temporary salary reduction announced in our email on September 10 and amended in President Pines’ email on September 28.

Effective October 25, the university will cease these temporary salary reductions for employees whose base salary is greater than $150,000, and the funds deducted will be restored. Because the temporary reduction is being discontinued, administrative leave days offered in conjunction with that program have been removed from PHR timesheets. Detailed information will be shared soon with impacted individuals.

While we are pleased to announce this cessation of these salary reductions, it is important to note that short-term budget challenges remain. It is essential that the university community continues to diligently comply with spending reductions, the hiring freeze and other budget mitigation measures currently in effect. Unknowns remain and the fluid situation may require different or additional measures in the future.

We appreciate the work and dedication of every member of our faculty and staff during these challenging times. Together is the way we will succeed.


Darryll J. Pines
President, University of Maryland

Mary Ann Rankin
Senior Vice President and Provost

Carlo Colella
Vice President for Administrative and Finance