The EBA Committee of the Maryland Legislature convened on February 1, 2024, to discuss critical budgetary issues affecting the University System of Maryland (USM) and its institutions. The meeting focused on the implications of decreased state support, personnel vacancies, and funding allocations for various programs.

The session began with a discussion on the potential impact of reduced state funding on USM's planned 2% tuition increase. The chancellor was asked to provide insights on whether this decrease would prompt a reevaluation of the tuition hike.

Key financial figures were presented, including a proposed $55 million adjustment to the turnover rate, $8.5 million for one-time legislative additions from 2020, and $5 million allocated for workforce development initiatives at the University of Shady Grove. Additionally, Bowie State University was set to receive $717,000 in HBCU funds.

The committee reviewed several funding mandates, including $6.6 million for three specific mandates, $4.8 million in matching funds for the University of Maryland Eastern Shore's extension program, and $700,000 for the Maryland Technology Internship Program, raising its total funding to $1.1 million. Furthermore, $12 million was earmarked for increases in operating costs.

Concerns were raised regarding the absence of funds to cover Maryland's share of professional instructional costs at the regional veterinary medicine college, established through an agreement with Virginia Tech in 1989. The state’s financial obligation for 2024 was noted to be $6.4 million, with an expected increase of $500,000 in 2025. The committee highlighted that College Park would need to identify alternative funding sources to meet this obligation.

The meeting also addressed the current financial landscape, revealing an estimated $46.1 million shortfall in unrestricted expenditures for 2024, which is expected to be offset by a $77.2 million surplus in auxiliary revenues. The discussion emphasized that tuition fee revenues for 2025 would rely heavily on enrollment projections, which are subject to change.

Personnel issues were a significant focus, with a report on vacancy rates across institutions indicating that seven had double-digit vacancy rates, with Bowie and Shady Grove exceeding 20%. The committee expressed concern over the increase in unfilled positions in student services, which rose from 41 to 502, as these roles are crucial for student retention.

The chancellor was tasked with addressing the rising number of vacant positions, the factors contributing to this trend, and the challenges faced in filling these roles. The meeting concluded with a call for further analysis and follow-up on these pressing issues as the committee prepares for future budgetary considerations.