Maryland Gov. Larry Hogan’s proposed fiscal 2018 budget will allot $17.5 million in additional state funds to cap tuition increases for University System of Maryland institutions.

Hogan’s proposed $17.1 billion operating budget, unveiled Tuesday, installs a 2 percent tuition increase cap for resident undergraduate students. It also designates a total of $1.35 billion in state funds toward the system schools — a 2.2 increase from last year, according to the administration’s news release.

The 12-institution system initially faced increases of up to 5 percent, Hogan said at a news conference at the University of Maryland on Jan. 10. The cap extends to Morgan State University and St. Mary’s College of Maryland.

University President Wallace Loh said the cap demonstrates Hogan’s “real commitment to higher education,” The Diamondback reported earlier this month.

The proposal also increases funding for education across the board. Hogan promised $6.4 billion in state investment in this state’s K-12 public schools, providing a record level of education funding for the third consecutive year, according to the release. Public school funding in fiscal 2016 was $6.1 billion.

Other budget highlights include $1.3 billion for mental health and substance use disorder services; $2.8 billion to improve transportation infrastructure; and $11 billion for this state’s Medicaid program, which provides coverage for 1.3 million residents.

“We are able to accomplish [funding our priorities] with no new taxes, no cuts to services, and without raiding dedicated special funds, and once again, this budget is 100 percent structurally balanced,” Hogan said in the release.

The administration’s fiscal 2018 budget will be officially submitted on Wednesday. The General Assembly will then review the budget and can reduce or restrict particular appropriations. The budget must be enacted by April.