Wallace Loh
University President Wallace Loh announced a campus-wide hiring and renovation freeze yesterday in an email sent to university faculty and staff.
The announcement came in anticipation of a $300 million shortfall in state revenue this fiscal year, which is projected to grow to $650 million next fiscal year.
Brian Ullmann, the marketing and communications assistant vice president at this university, said this is not a complete freeze as exceptions will be made for people deemed necessary to maintain the running of this university. Lecturers, graduate assistants and positions funded by external research grants will be exempt from the freeze, according to the email.
Although new state-funded renovations will be halted, Loh said he does not expect this to affect the construction of the Brendan Iribe Center for Computer Science and Innovation or the proposed Cole Field House renovations.
Many of the facility renovations at this university are supported by a large amount of private funding, which Loh called a “huge advantage that College Park has.”
All University System of Maryland institutions were advised “to reduce expenditures, consider a hiring freeze, and prepare for more budget reductions,” according to the email. This will affect all areas of university life, including student affairs, academics and research, Loh said.
To address the freeze and anticipated budget cuts, Loh said he will form a task force of faculty, students, staff and administrators to recommend areas in which the university can cut spending and increase revenue.
“We are going to work on this together,” Loh said. “My charge to this group is be innovative, be entrepreneurial and generate more revenue.”
Student Government Association President Patrick Ronk said he will be involved with the task force and spoke with Loh about it Dec. 2. When developing solutions, Ronk said he wants to examine academic programs, revenues, alumni outreach and ways to increase fundraising.
“This entire situation is unfortunate, but it’s a reality,” Ronk said. “I don’t think anyone wants this to happen.”
If current state deficits do not improve, there will be an expected shortfall of $1 billion in state revenue by fiscal year 2020.
Ullmann said the task force and the university administration plan to look at ways the university could increase revenue, such as with online academic programs.
Republican Gov.-elect Larry Hogan will take office Jan. 21, and Ullmann said the university will “have more of a sense of the scope” and magnitude of the budget cuts once Hogan announces his policies.
“You always want to be as efficient as possible,” Loh said. “What exactly does the governor have in mind for every particular agency such as higher education? How much efficiency do you want to squeeze out of it? So we will wait for more guidance.”
