The University System of Maryland plans to cut 400 jobs across the state’s colleges to absorb some of Gov. Wes Moore’s proposed reduction of $111 million to the system’s budget.

Jay Perman, the USM chancellor, addressed state lawmakers over a two-day period this week and warned of the “difficult decisions ahead” as the state grapples with a $3 billion deficit.

“I must say plainly that the nearly 5% cut we’re sustaining will be difficult for our universities, for the faculty and staff they employ and for the students they educate,” Perman said Friday morning. “We’re in the business of serving people and there’s very little we can cut that won’t have a real and significant impact on them.”

System officials estimate saving $45 million by cutting 400 positions, through a mix of layoffs and eliminating vacant positions.

The university system sustained $69 million in state budget cuts this fiscal year and now is planning for Moore’s proposal that would cut another $111 million for the upcoming fiscal year, Perman said.

Yet enrollment continues to grow, and employee wages have climbed 20% in the last three years alone, he said. The university system employs 42,000 people.

System officials say the proposed budget reduction would directly affect students and the Maryland economy.

“We fear unfilled faculty positions will grow our faculty to student ratios and impair students’ abilities to graduate on time,” Perman said. “Because we’re responsible for so much of Maryland’s workforce, we’re concerned about the impact of our reduced capacity on the state’s most urgent workforce needs: STEM, health care and teaching.”

Many universities will look to eliminate student-facing positions, such as advising, counseling, mental health services, career services and academic support positions, Perman said.

“A great number of our students rely heavily on these services to get them through school and to a degree, especially our first generation and low-income students,” he said. “So we’re concerned about seeing a rise in their dropout rate.”

Tuition also is expected to rise — potentially between 2% and 5% for in-state students and 5% and 7% for out-of-state students, according to a document from the University System of Maryland Board of Regents.

The university system has a $7.7 billion budget, according to Perman. Twenty-eight percent, he said, comes from general funds, while 26% comes from student tuition. Another 26% comes from restricted funds such as grants and contracts. Ten percent comes from auxiliary services, and the final 10%, he said, is a “mixed bag.”

State Sen. Nancy King, a Montgomery County Democrat, expressed concern during the presentation.

“I think all of us are as worried as you are about what the future looks like,” she told Perman. “I hate to take a whole bunch of cuts this year and then next year get really desperate because we don’t have anything left to cut.”

The Trump administration’s federal funding freeze has not helped ease concerns, Perman said. The university system could see a “critical blow” to funding if the Trump administration continues to push for a research freeze.

Maryland’s public universities see “about a billion dollars a year” in federal grants and contracts, meaning there is likely to be “quite a bit of exposure.”

While Perman didn’t share specific plans in place by the system, he did say that leadership was “looking at each grant and determining where they may be, if you will, hot buttons.”

The university system also plans to reduce deferred maintenance costs, which will affect the universities in the state that are “already challenged by critical building systems,” Perman said.

Reducing deferred maintenance now could increase future costs as buildings continue to age. It could cause issues with “student safety and disruptions to student learning,” he said.

Perman also warned about other legislation being proposed that could affect the university system’s employees amid the cuts.

“Often legislation is passed that requires reports,” he said. “To the extent that we are going to have to meet these budget cuts, there may very well be fewer people on campus to do the work.”

About the Education HubThis reporting is part of The Banner’s Education Hub, community-funded journalism that provides parents with resources they need to make decisions about how their children learn. Read more.