The University System of Maryland’s governing body endorsed Gov. Martin O’Malley’s (D-Md.) entire deficit reduction plan Friday after a heated debate, giving approval to a plan aimed at providing $60 million in funding dedicated to the state’s 13 public universities.
Dedicated funding for the state’s universities has long been discussed, but has never become a reality for university officials. Unlike publicly funded K-12 schools, which the state requires the legislature to set aside money for, university officials must wrangle each year for a slice of the state’s budget. If passed, O’Malley’s plan would set aside half of a 1 percent increase on corporate taxes to continuously fund higher education in the state.
The final vote was 15-2, with Board of Regents members Robert Pevenstein and Alicia Hoffman both voting against the resolution. Both were appointed by former Republican Gov. Robert Ehrlich.
The regents took a stance on the plan as a whole because the governor promised a steady stream of funding toward higher education, said System Chancellor Brit Kirwan. A handful of board members cited problems with the blanket support – saying they didn’t support tax increases, insisting the vote of confidence was premature and citing general opposition to mandated funds.
“This is going to be the first time I’ve supported mandated funds,” said Regent Marvin Mandel, who as state governor sued the legislature in the mid-1970s for trying to mandate funding. But he said he voted in favor of the resolution because he has to look out for higher education’s best interests.
Mandel still noted his concerns about mandated funding, however, saying, “we’re going to tie [O’Malley’s] hands to the point where he’s not going to be able to commit to his programs.”
O’Malley’s plan also calls for other revenue increases, including legalizing slots, increasing the sales tax by one cent and charging sales tax on services that aren’t currently taxed. The General Assembly has yet to pass O’Malley’s proposal, which it will consider next week in a special session.
If O’Malley’s plan is approved as it currently stands, the universities would get enough money to potentially freeze tuition for residents again.
Regent James Shea, an O’Malley appointee, was the first to suggest supporting the plan as a whole at the meeting at the University of Maryland Eastern Shore.
“This resolution, as I read it, is limited to support revenue enhancement for higher education and the issue is far broader than that,” Shea said of the original resolution, which only called for support of the higher education funding part of O’Malley’s plan.
“It could be seen as self-serving,” Shea said. “It doesn’t add to the public dialogue for all the state’s needs.”
Though the board eventually agreed to support the entire plan, system and university officials expressed different opinions of its effects.
Kirwan said this is the first time regents have taken a stance on an issue promoting revenue. He said he expects the resolution to encourage legislators to support the deficit reduction plan.
But university President Dan Mote said the resolution was just a formality.
“I’ve certainly supported enhancements as long as I can remember,” Mote said. “Now when I address this topic I will be speaking” in line with the regents, he said.
But the regents who supported the resolution believe it is meaningful. Regent Patricia Florestano said she hopes the resolution will help pass O’Malley’s plan sooner.
The state’s current $1.7 billion budget deficit could balloon by another $500 million by the time the official legislative session arrives in January, if it isn’t passed in the special session.
And while Kirwan said O’Malley’s plan is a good first step to better higher education funding, he added that it’s not enough. The system often takes the brunt of cuts when the state faces economic hardship because the state is only required to fund 75 percent of its budget.
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