Budget and Enrollment Update

Wed, 12 May 2021 15:05:52 -0400

Key Points

The FY 2021 year-end operating results are better than previously projected.

The FY 2022 budget will continue to be challenging as we manage ongoing impacts of the pandemic, including base budget cuts spanning both FY 2021 and FY 2022.

Recognizing the financial strain some of our students and their families are facing, the Board of Regents has approved minimal increases in tuition rates for FY 2022.

The campus is on track to enroll the largest class of new freshmen in UMBC history. Students and families continue to believe in UMBC.

Dear UMBC Community,

A year ago, the campus faced a budget reduction of $65 million primarily as a result of a major State budget cut, loss of auxiliary revenues, and the extraordinary costs of safety measures required by the COVID-19 pandemic. We are very pleased to let you know that the year-end outlook for fiscal year (FY) 2021 is better than previously projected. This is thanks to the resilience of our faculty, staff, and students, who have worked to be as financially conservative as possible while continuing to focus on academic progress and support for people. Our fiscal position has also been helped tremendously by $10.6 million in federal stimulus funds. We now expect to close the financial year with a $19 million shortfall, primarily the result of reduced fee revenue in auxiliary operations such as residence halls and dining services.

The FY 2022 State budget recently approved by the Maryland General Assembly maintains the $12 million reduction to UMBC’s state appropriation that was adopted in FY 2021. The State budget also includes an additional $1.6 million reduction to UMBC’s base state appropriation, bringing the total base reduction in the past two fiscal years to $13.6 million.

While it will take several years to recover from these reductions and the financial effects of the COVID-19 pandemic, we are grateful to the State for providing some helpful additional resources in the FY 2022 budget. The FY 2022 State budget includes additional and targeted funding for the following:

Base funding to cover the cost of the two percent cost of living increase that was effective January 1, 2021.

An additional $400,000 to enhance our economic development and research activity.

Funding to support multiple healthcare, public health, and health services programs on campus.

The FY 2022 State capital budget also includes funding for a number of essential infrastructure projects on campus:

$6.9 million for utility upgrades;

$7.0 million for the planning and design of Sherman Hall renovation; and

$2.0 million for critical roof replacement projects.

Recognizing the financial strain that some of our students and their families are facing, the Board of Regents has approved a minimal increase in the FY 2022 tuition rates of two percent for in-state undergraduate students. Out-of-state undergraduate tuition and graduate student tuition will increase by three percent. These modest increases follow a year in which tuition was held flat.

Most exciting for the future of UMBC, the campus is on track to enroll the largest class of new freshmen in UMBC history. We are also seeing strong interest from prospective transfer and graduate students and are working closely to support and retain current students. It is wonderful to know that even in this time of unprecedented disruption, students and families continue to believe in the value of higher education and have confidence in UMBC.

We thank you for all you have done this year to assure that UMBC remains a welcoming community for inquiring minds, and we look forward to continuing to partner with our students, faculty, and staff as we prepare to return to robust learning and life on campus this fall. We wish our students success on their final projects and exams and urge all to take time for rest and reflection this summer.

President Freeman Hrabowski and Provost Philip Rous