Taking a page from the USM playbook, the State of Maine is being forced to make cuts as it faces a budget crisis of it’s own. Since about 33 percent of USM’s budget comes from the state allocation, USM’s own predicament is potentially about to get worse.
In January, Gov. John Baldacci proposed $85 million in spending cuts to try to relieve the state’s budget woes. Members of the state legislature were also warned that an additional $99 million might need to be cut in the near future.
Already trying to fill an $8.2 million hole, USM could feel the effect of the proposed cuts in a dramatic way.
The 2008-2009 Maine State budget currently stands at $6.3 billion, with $3.05 billion – more than any other category – marked for education. With around 18 percent of the education funds earmarked for higher education, these cuts would arguably hurt the University of Maine System more than any other state entity. The UMS has been asked to make $6 million in cuts.
These cuts would affect the 45,622 students enrolled in courses statewide.
In a letter from Richard Pattenaude, chancellor of the UMS and former USM president, he outlines the effect that the cuts could have on the system. These could include an elimination of 150-200 positions system-wide, a projected potential tuition increase of 14%, and a $56.7 million loss in the state’s economy.
While it’s almost certain that the UMS will take a hit, the exact implications of budget cuts aren’t yet clear.
“We are working partially in the dark here,” said USM interim President Joe Wood, admitting that the specifics of the cuts have yet to be fully explained to individual schools within the UMS.
The UMS has already projected an $8 million budget gap for the upcoming fiscal year, according to Pattenaude’s letter. The effects of the proposed state cuts could double UMS’s budget gap, landing the organization, which funds seven universities, $15 million in the red.
Pattenaude’s letter also predicts some of the economic and social consequences this could have on the state.
“Current students and their families would experience a loss of academic quality, access, and affordability,” he wrote.
But also, he says, “Maine’s economy would suffer a loss of more than $56 million in economic activity. Taxpayers would also find local tax revenue affected in lost economic activity related to Maine’s public universities.”
The UMS also predicts that the budget gap could make suspending or eliminating course offerings a necessary move. This could affect the 26 degree programs currently on “probation” at USM.
In his most recent “Moving Forward” letter to the university, Wood responded to Pattenaude’s report.
“Clearly we must ramp up our efforts to take a hard look at all services and programs to identify cost savings and to make sure we are doing everything possible to protect and support the central mission of this university.”