The University of Maryland, Baltimore (UMB) held its inaugural budget town hall on Monday, November 11, bringing faculty, staff, and administrators together for an in-depth discussion on the University’s fiscal health and planning. With a goal to enhance transparency, the event detailed UMB’s financial framework, budget process, and challenges for fiscal years (FY) 24/25 and provided an early look at FY26.
Leading the presentation was Dawn M. Rhodes, DBA, chief business and finance officer and senior vice president, who emphasized that UMB remains financially robust. She said that FY24 closed on a $15 million surplus, increasing the University’s fund balance to $312 million. This fund serves as a reserve for strategic investments and emergencies.
Rhodes pointed to metrics that consistently surpass University System of Maryland benchmarks, saying that UMB is, “a fiscally strong and healthy university. Please take that away from this discussion. We are extremely strong.”
However, she noted that FY25 has posed challenges. UMB’s $1.7 billion all-funds budget includes a $16.9 million increase in assessments, driven by reduced state appropriations and rising operational costs. The assessment — essentially a tax allocated to schools and administrative units — funds strategic initiatives and offsets state funding cuts.
During the event, Rhodes also explained key concepts including fund balances, one-time vs. permanent revenues and expenses, and the assessment process. She also outlined the annual budget timeline, which involves collaboration with deans, faculty, and staff senates through the Funding Model Work Group.
Rhodes stressed proactive planning for FY26, citing the possibility of another cut in state appropriations. "We don’t want to wait and have things happen to us. We want to be proactive," she said. Plans include improving operational efficiency, realigning resources, and exploring revenue-generating opportunities.
A Q&A session followed the presentation, and audience questions reflected concerns about job security and compensation. While Rhodes acknowledged the potential for layoffs, she emphasized that FY25’s budget cuts resulted in minimal staffing impacts: 34.2 vacant full-time equivalent positions were eliminated and the equivalent of 17.2 full-time staff members were laid off, representing less than 1% of the state funded workforce.
Regarding cost-of-living adjustments and merit increases, Rhodes noted uncertainty, as these decisions depend on state funding. She also addressed changes to Fair Labor Standards Act regulations, which will affect employee classifications and benefits starting January 2025.
UMB President Bruce E. Jarrell, MD, FACS, joined Rhodes in answering questions. In remarks addressing uncertainty facing higher education in the wake of the 2024 presidential election, he stressed that UMB’s mission — improving the human condition through education, clinical care, and research — remains paramount. “We will continue to make that our highest priority, consistent with our core values,” he said, adding, “What we live with every day.”
The town hall closed with a call for community engagement. "We’re all in this together, and we need to have your input in terms of what are the things that we can do better," said Rhodes, encouraging staff to share ideas for operational improvements.
