University System of Maryland Chancellor Jay Perman said the system projects a total loss of about $425 million in the current fiscal year due to budget cuts and expenses related to operating campuses during the coronavirus pandemic.
Perman disclosed the estimate while answering a question about systemwide financial impacts of the pandemic, during a webinar hosted by the University of Maryland, Baltimore Thursday. About $130 million of that $425 million total represents the funding that the Maryland state government asked the public school system to cut from its over $6 billion budget for the fiscal year that ends June 30, 2021, Perman said. The additional $295 million will come from the loss of other revenue sources, such as certain campus fees, contracts and grants, as well as significant additional expenses related to preparing campuses for the partial return of students and faculty this fall.
The losses will compound the financial hits the system and its 12 member institutions have already suffered due to Covid-19. Earlier this year, Perman said USM would finish the spring 2020 semester “about $230 [million] to $240 million behind.” USM’s institutions received about $80.5 million collectively as part of a federal relief package, which accounted for just over 30% of the overall projected losses for that semester alone.
