From: Michael S. Keeney, Ph.D., Chief Financial and Operating Officer

Date: May 21, 2025

Subject: FY26 Budget Update: Staff Development and How We Prioritize Travel Spending

As you are aware, the State of Maryland is experiencing significant budget constraints. As a result of state budget cuts, USG will see a 7 percent permanent reduction to its base budget for the upcoming fiscal year, which begins July 1. This cut aligns with other institutions in the University System of Maryland. We want to provide an update as we work through the challenges of putting together the coming year’s budget.

In early June, we expect to share estimated operating budgets with unit leaders. As part of our USG budget planning process, we identify expenses that are not absolutely necessary and prioritize making reductions in these areas to achieve savings. Throughout this process, we are committed to doing everything we can towards maintaining the programs, resources, and people that are essential to our operations.

To that end, we’ve identified staff development as one area for reduction across all budgets. When unit leaders receive their estimated budgets, staff development currently will not be funded.

Therefore, as you head into the new fiscal year and plan spending, it’s important to pause expenditures in the area of staff development. 

Please take note of the following: 

  • All units should refrain from obligating and expending funds for these purposes. Units may proceed with cost-free/travel-free professional development activities with approval from supervisors.
  • If you have planned for expenditures, you may need to cancel your plans.
  • Because staff development can involve travel, please note: Registering for events and/or making payments with the Corporate Travel Card for activities to take place in FY 2026 without prior approval may result in you having to reimburse USG for the non-approved expense. If you pay out-of-pocket without approval, it is possible that you will not be reimbursed by USG.

As we close one fiscal year and begin another, I also ask that you carefully consider the impact of all spending within your budget -- especially discretionary spending on travel, office supplies, and other equipment. Your decisions make a difference.

Travel is a key area where one can make a difference. Please limit in-state travel, out-of-state travel, and local business meals to mission-critical activities. As a reminder, you are encouraged to review the UMD Travel Policies, Procedures, and Guidance for general policy, dollar guidelines, and documentation requirements.

Finally, previous guidance from the USG Office of Strategic Human Resources in March on hiring remains in place:  

  • The recruitment of existing, funded positions requires approval from the Executive Director and the CFO/COO.
  • The creation of new regular staff and faculty positions as well as C1/C2 positions is paused until further notice.
  • All C1, C2, and hourly student staff contracts will be reviewed by the Executive Director and the CFO/COO prior to renewal.

As you make budget plans, please talk with your supervisors.

If you have questions regarding travel, operating budget, or other areas of the budget, please contact Emiko Kawagoshi ekawago1@umd.edu.

If you have questions about HR matters, please contact Nitshu Joshi njoshi14@umd.edu. 

We will continue to communicate updates as budget planning continues and we appreciate your cooperation. Thank you for your support as we plan for the new fiscal year, as well as future budget cycles.