Senate Panel Cuts University Funds, Putting Tuition Freeze in Jeopardy

A Maryland Senate budget panel cut nearly $7 million in state funding yesterday for the University System of Maryland, a move that could jeopardize a proposed tuition freeze this fall. The panel also reduced state spending on stem cell research next year from $23 million to $5 million.

The reductions were among more than $80 million in cuts to Gov. Martin O'Malley's proposed budget made by the Health, Education and Human Resources subcommittee of the Senate Budget and Taxation Committee. With a soft economy yielding lower-than-expected tax revenue, other subcommittees are planning to make additional reductions in the coming week before the budget is sent to the House of Delegates for consideration.

O'Malley (D) has proposed holding the line on university tuition this fall for the third year in a row. In the budget he sent to the legislature in January, the governor included $15.5 million to offset an anticipated 4 percent tuition increase.

The Senate panel cut $6.8 million from elsewhere in the university system budget, a move the system's lobbyist said could lead university regents to reassess their ability to keep tuition from rising modestly in the fall.

"We're going to have to see if we can handle that $6.8 million cut and still freeze tuition," said Patrick J. Hogan, the university system's associate vice chancellor for government relations.

Hogan, a former senator who served as vice chairman of the budget committee, said university system officials hope the House will not make deeper cuts.

Senate budget writers said the $6.8 million reduction would still allow per-student funding to grow by at least 4 percent in the coming year.

O'Malley spokesman Rick Abbruzzese said it is early in the budget process.

"The governor is absolutely committed to keeping college tuition affordable and will be working with House and Senate leaders as well as regents," Abbruzzese said.

The Senate panel also cut $18 million from O'Malley's proposal to spend $23 million next year on grants for stem cell research, which advocates say holds great promise for treating a range of debilitating conditions.

Demand for the program, which was created in 2006, has been strong, but legislative analysts have said that funds provided by the General Assembly are outpacing distribution by the Maryland Technology Development Corp., which runs the program.

Lawmakers allocated $15 million in 2006 and $23 million in 2007.