As we continue to navigate a challenging fiscal environment, I want to provide updates on several key areas. While our resources remain constrained, our shared focus on thoughtful planning and disciplined spending will help ensure that USG continues to deliver on its mission and support our community. With your help, we have identified valuable options for reducing the impact of budget pressures, and I am grateful for your partnership in that work.
While budget-related discussions across our state system and across higher education more generally provide context, it’s important to note that USG’s planning and decision-making are guided by USG's own budget planning processes. I therefore want to share clear information about our current outlook and expectations for our community for the upcoming fiscal year (FY27) which begins on July 1, 2026.
I also want to note that the State of Maryland's FY27 budget provides a 1.5 percent cost-of-living adjustment for regular faculty and staff. This state-supported investment reflects continued recognition of the importance of our team and its critical contributions across the system.
Budgets are expected to be loaded in Workday by late summer. As always, however, we will work to provide units with their operating budgets in June and will communicate any major changes as soon as possible.
Hiring Guidance
As part of our continued efforts to manage the budget responsibly, USG has lifted the formal pause on hiring as of February 1, 2026, but will continue to maintain tight controls on hiring. Positions will require approval through the review process, which takes into account factors such as operational need and available funding.
USG has continued moving forward with approved recruitment for vacant positions included in the FY26 and FY27 budgets. For more information about open positions, please visit the USG employment page.
FY27 Budget Planning
As we move forward with FY27 budget planning, I want to thank those of you who participated in the budget exercise that helped inform this process. Your engagement identified meaningful options for reducing impact and has played an important role in shaping our planning approach.
That work was grounded in zero-base budget principles and required line-item detail for proposed expenditures. Departments were asked to approach the exercise with a focus on efficiency, impact, and alignment with USG's mission and priorities. Involving units directly in this work not only produced valuable planning information, but also helped to build broader awareness of the fiscal environment, deepen understanding of institutional priorities, and strengthen the sense of shared responsibility needed to move forward together.
The options identified through that process have informed our FY27 planning and will continue to support decision-making in the months ahead. I encourage you to continue to work with the budget office throughout the year to identify opportunities for continued streamlining and programming within your individual budgets.
FY27 Staff Development, Out-of-State Travel, and Overnight Travel
For FY27, which begins July 1, 2026, overnight and out-of-state travel with overnight will not be authorized. Any exception must be approved in advance by the Executive Director, with an identified funding source, and all approvals must be completed through Concur. No exceptions will be made after the fact. Travel that is not approved in advance may be deemed non-reimbursable, and employees may be required to reimburse the institution for any unauthorized expenses incurred. All other business travel and related expenses must be explicitly tied to official USG business.
Because of budget constraints, FY27 funding for staff development has been eliminated. Unit leaders will work with staff to identify alternative opportunities for growth and development.
FY27 Purchase Cards
We will continue to limit the distribution of Purchase Cards to USG staff based on demonstrated operational need. Employees are strongly encouraged to use Shell Shop whenever possible.
Please remember that cardholders and reviewers are responsible for compliance with State of Maryland rules and procedures. Failure to comply may result in card suspension and/or card removal.
For additional information, please contact Emiko Kawagoshi, Director of Finance and Operations.
Continued Fiscal Prudence
Your continued vigilance in monitoring spending, especially for travel, discretionary purchases, and non-essential activities, remains essential to maintaining operational stability.
Thank you for your careful stewardship of USG's resources and for your unwavering dedication to our mission. Your ability to adapt, innovate, and make sound decisions helps ensure that we remain strong, both now and into the future. Together, we will continue to deliver the programs, services, and opportunities that our students and partners count on.
As the FY27 budget planning season continues, we will keep you updated with relevant information as it becomes available.