Update: Fiscal Responsibility Measure Implementation

From: Kristy Long
To: All-FM
Subject: Update: Fiscal Responsibility Measure Implementation

Dear FM Team,

I am reaching out today to share information we received from Interim Vice President Bob Reuning regarding the division’s response to the State of Maryland facing one of the largest budget gaps in 2 decades. While higher education has benefited from generous state investments in recent years, reductions are anticipated as we move forward.

To prepare for these financial challenges, particularly an expected significant budget cut in FY26, the Division of Administration is implementing a temporary pause on certain personnel actions and has provided the following direction:

From now until February 17, the Division of Administration will pause:

• Hiring: All hiring including regular, CI, and CII positions. We will honor any offer that has already been issued, and proceed with filling any position currently in final round interviews. CI and CII contract renewals are allowed. Beyond this, no new offers or contracts can be issued during the pause.
• Salary Increases that Impact Base Budget: This includes within-band adjustments, reclassifications and equity adjustments that have not already been approved by UHR and the senior leader or vice president as applicable. Acting and administrative increments can continue because they are temporary and do not impact base budget. Any actions required by UMD agreements with unions may also continue.

No exceptions will be granted during this pause.

It is important to recognize that personnel costs represent the largest portion of our operating budget. By taking this prudent action now, we will be better positioned to manage future impacts from the anticipated budget cuts. As more information is received and department budget reduction strategies and overall fiscal conditions are evaluated, the VPA will provide additional guidance.

While these coming months may be challenging, I am confident in our team's resilience and adaptability.

Together, we have always risen to challenges. and I have no doubt that we will navigate this successfully. I deeply appreciate your continuous hard work and dedication to providing exceptional service to our campus community.

Thank you for your understanding and partnership as we navigate these changes together. If you have any questions, please do not hesitate to reach out to FMHR.

Sincerely,

Kristy