January 12, 2018 10:37 PM
Another round of budget cuts is in the works at UMD. The university is facing a $5.4 million budget shortfall for the 2019 fiscal year, forcing them to make cuts over the next several years.
The cuts continue the lengthy process of balancing their budget. Chancellor Lendley Black says although they've come a long way - from a $9.4 million imbalance in the 2014 fiscal year to $3.2 million this year, there is still difficult work left to be done.
"They're never good and they're never enjoyable," said Black. "We've been on a journey the last several years at UMD dealing with some challenges with our budget, particularly a structural imbalance."
The $6.2 million decrease in the deficit from the last fiscal year was due to one time allocation money they won't have next time.
"One of my goals is to make sure that UMD is on very firm financial footing in the long term," said Black."So what we've done is we presented to the campus a model for how we will resolve this."
The plan was presented in an employee town hall meeting Thursday, as well as via email to campus that day.
The model includes reducing the university's budget by $600,000 in fiscal year 2019. Starting in 2020, they'll make cuts that could range from $1 million to $1.5 million. The cuts will include academic affairs, student life and the Chancellor's unit.
"We don't know for sure yet exactly what the reductions will be," said Black.
While he says the cuts are not a "dire" situation, it's important to resolve the issues now.
"I need to emphasize that these cuts are relatively a small portion of our budget," Black added.
He says overall, the University is in good condition.
"We had another increase this fall in our students. That's going to help with our tuition revenue," said Black. "So it's not just about cuts. It's also about revenue, and about new initiatives."
The focus is on the end of the 2023 fiscal year and reaching their balanced budget vision.
"We'll determine on a year to year basis depending upon revenues and expenses, which cuts have to be made, how much has to be made and what things were going to add," said Black.
The cuts for next year are expected to be finalized by February.
Updated: January 12, 2018 10:37 PM
Created: January 12, 2018 05:28 PM
Copyright 2018 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved