UMD System Chancellor Cuts Pay, Warns of Layoffs


The University System of Maryland's chancellor announced he is taking a 10% pay cut and warned that employees could face furloughs, pay reductions or layoffs as the system struggles to close a budget shortfall caused by the coronavirus pandemic.

Chancellor Jay Perman laid out the temporary cut to his $960,744 salary in a statement Wednesday.

The university system expected its revenue would fall $500 million short of estimates for the budget year ending next summer, which could mean reductions in operating expenses, hiring freezes, furloughs, temporary salary reductions and layoffs, officials said.

“I acknowledge that the size of our deficit means that, to some degree, employees will likely have to share in the pain of budget cuts,” Perman said in the statement.

The budget gap includes a more than $100 million reduction in state funding that was announced earlier this year, and follows a $230 million revenue loss for the previous budget cycle after the system refunded some room and board money back to students when they were sent home in March.

The American Federation of State, County and Municipal Employees criticized the system's statement and alleged the administration had failed to bargain with the union on health and safety practices or finances.

Union leaders called for officials to negotiate about potential cuts and pointed to the state government's Wednesday announcement that Maryland ended the year with a budget surplus to argue that the state does not need to cut jobs or salaries to balance its budget.

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