Updates on the University's fiscal year 2026 budget

Dear colleagues,

Over the past several months, we have been working diligently to craft a budget for the coming fiscal year centered on our university's mission. We have remained committed to financial sustainability while recognizing the challenges of the current environment. We are grateful to everyone in our community who has helped to shape this year's budget. The careful consideration and thoughtful planning that many in our community exhibited throughout this difficult budget season are deeply appreciated. Now that campus units have completed their fiscal year 2026 working budgets and the University System of Maryland Board of Regents has met and approved financial measures at the institutional level, we are providing an update on the university's budget.

Earlier this spring, units began taking steps to address a 5 percent reduction in state funding to our campus, which amounts to $42 million. These steps included actions such as not filling recently vacated positions, reducing the number of contractual and hourly positions, and decreasing operating expenses such as travel, capital and consultant spending.

During the budget preparation process, the University received an additional 2 percent reduction in funding, or $17 million. This reduction was not passed on to campus units. Instead, we made the difficult decision not to provide merit increases this year for non-bargaining employees and to seek an increase in tuition. While the University System of Maryland Board of Regents has authorized System presidents to develop furlough plans, this option is paused for our university until we have better clarity on potential future reductions in funding.

Moving forward, the university will focus on strategic actions that preserve the services that we offer to students and the community, and continue to monitor and address changes at the federal level that may impact our revenues, including changes to research funding.

We recognize the challenges and stress that the current budget environment represents for our entire community. Without question, we remain committed to carrying out the pillars of the Fearlessly Forward strategic plan, and we are fully dedicated to teaching, research, scholarship and service for the public good.

We thank you again for your contributions to our institution and for your resilience and continued commitment to excellence.

Sincerely,

Darryll J. Pines
President, University of Maryland
He/Him/His

Jennifer King Rice
Senior Vice President and Provost
She/Her/Hers

Greg Oler
Vice President for Finance and Chief Financial Officer
He/Him/His