Dive Brief:
- Frostburg State University, in Maryland, unveiled a plan Thursday to cut more than $7 million from its budget to remedy a structural deficit.
- The plan entails cutting some 30 faculty positions by the fall 2025 term, and an additional 15 jobs by the spring 2026 term, a spokesperson said Monday. The public university expects the faculty cuts to save $3.9 million in the 2026 fiscal year and $4.8 million in the 2027 fiscal year.
- Frostburg also plans to reorganize its administration to save $1.7 million in fiscal 2025 and beyond, reduce athletics spending to save $883,000 and make cuts to operations to save up to another $1 million.
Dive Insight:
The university’s first round of faculty cuts will include employees with less than two years of service, while the second round may include those with more, the spokesperson said.
Frostburg will also merge four administrative units into two — combining its advancement division with the regional development and engagement office, and merging academic affairs and student affairs. Those changes will eliminate two vice president positions.
Additionally, the university plans to reorganize deans’ offices across its three colleges. Each college will have two assistant deans, who will spend half their time on administrative work and the half on teaching.
Frostburg anticipates the moves will eliminate its $7.7 million structural deficit and lead to a surplus of up to $3.2 million in fiscal 2026. By fiscal 2027, university officials project that surplus could grow to $4.2 million.
Frostburg, which is part of the 12-institution University System of Maryland, attributed its budget woes to issues plaguing regional universities nationwide.
“Fewer high school graduates, the lingering impacts of COVID, and the problem-laden rollout of the new FAFSA (Free Application for Federal Student Aid) form have all had a hand in declining enrollment,” top leaders said in an Aug. 1 message to students and parents.
The public university pointed out that its enrollment has fallen faster than its faculty headcounts.
According to the announcement, enrollment of full-time-equivalent students has dropped 36% since the 2010 fiscal year. But over the same period, full-time faculty counts declined by around 14%.
The university enrolled 4,067 students in fall 2022, according to federal data.
Enrollment losses have led to lower net tuition and fee revenue: $17.3 million in fiscal 2023, down 38.4% from five years prior.
The institution this summer assembled a budget review team composed of faculty, staff and students to help identify ways to plug the deficit.
“FSU’s plan will be a multi-year effort that will focus on the best interests of students and the institution,” the spokesperson said, adding that the time frame for carrying out each element will differ.
Frostburg’s announcement also attributes its financial troubles to lower state funding. The spokesperson said cuts to the University System of Maryland’s budget in fiscal 2025 led to a $1 million reduction in funding for Frostburg.
The state also hit the institution with even more recent cuts.
In May, Maryland Gov. Wes Moore signed a state budget providing $142 million to Frostburg for the 2025 fiscal year.
However, in July, Moore proposed $150 million cuts to the already approved budget. Officials attributed the need for the cuts in part to Medicaid enrollment outpacing projections and a state-subsidized child care program continuing to grow, Maryland Matters reported.
The Maryland Board of Public Works approved the cuts in mid-July. More than one-third of the slashed funds had been allocated to the state’s universities and the Maryland Higher Education Commission.
The Frostburg spokesperson said this led to a further $546,000 reduction in funding for the university.
The University System of Maryland will give Frostburg financial support if the institution is able to implement its plan, according to the announcement.
The system will either make certain payments on behalf of Frostburg or give it one-time permission to defer some expenses in fiscal 2025, such as required pay increases or bond payments, the spokesperson said.