Analysts and university leaders outline enrollment shifts, loan changes and teacher-pipeline concerns

Department of Legislative Services analysts told the Education and Economic Development Subcommittee that state support for higher education increases modestly in the governor’s fiscal 2027 allowance, but multiple structural pressures require targeted strategies across institutions.

DLS reported that overall state funding for higher education rises about 3.3% ($99.7 million), with public four-year institutions increasing roughly 3.1% and community college aid up 3.2%. Exhibits reviewed by the committee showed inflation-adjusted state support per full-time-equivalent student has grown, tuition in Maryland remains below many competitors, and the state’s fall 2025 undergraduate headcount is roughly 1% below 2016 levels.

Analysts and university leaders emphasized several policy challenges. They noted an expected long-term decline (roughly 15% by 2041) in the number of Maryland high school graduates, a national decline in teacher program enrollments and persistent gaps in college-going rates, and the immediate impact of proposed federal changes to Grad PLUS and Parent PLUS loans. DLS and speakers warned those federal changes could price some graduate and professional students out of programs or shift them to higher-cost private lending markets.

Dr. J. Perman, chancellor of the University System of Maryland, described systemwide recruitment and retention efforts including peer-to-peer mentoring (supported by a $4 million federal grant), early college pathways and targeted outreach to underrepresented communities. Perman said USM awarded $107 million in university-provided aid to high-need students last year and emphasized reengagement programs for students who have stopped out.

Morgan State University President David Wilson and Saint Mary’s College President Rhonda Phillips described institution-level approaches. Wilson reported Morgan’s enrollment growth (11,600 students, with projections above 12,000) and extensive use of institutional aid (~$40 million yearly) to support affordability; he raised concerns that federal loan caps would particularly affect graduate and professional borrowers and parents relying on PLUS loans. Phillips highlighted Saint Mary’s revised LEHI curriculum and maintained tuition freezes for Maryland residents that have supported access and strong graduate employment outcomes.

Representatives of independent and community colleges emphasized dual enrollment and accelerated teacher pathways. Community colleges and MICUA members urged state support for accelerated certification programs and pilot partnerships to get more teachers into classrooms quickly.

Next steps: DLS recommended committee narrative requests for additional reporting (for example, another instructional faculty workload report) and asked the chancellor and institutions to respond where the analysis requested clarification. Several legislators asked for follow-up analyses on private donations per pupil after DLS presented per-student figures for the Mackenzie Scott gifts.

Ending: The committee closed the higher-education overview and prepared to receive the Governor’s Office for Children panel.