Frostburg State University in Maryland recently announced a cost-cutting plan to address a significant budget deficit of over $7 million. The plan involves reducing faculty positions, reorganizing administration, cutting athletics spending, and making operational adjustments to achieve financial stability.
To begin with, the university plans to cut approximately 30 faculty positions by the fall of 2025 and an additional 15 positions by the spring of 2026. These faculty reductions are expected to save $3.9 million in the 2026 fiscal year and $4.8 million in the 2027 fiscal year. Furthermore, Frostburg will reorganize its administration, resulting in savings of $1.7 million in fiscal 2025 and beyond.
In addition to faculty and administrative changes, the university intends to reduce athletics spending by $883,000 and make operational cuts to save up to another $1 million. By implementing these measures, Frostburg aims to eliminate its $7.7 million structural deficit and potentially generate a surplus of up to $3.2 million by fiscal 2026, with projections of a $4.2 million surplus by fiscal 2027.
The university’s enrollment decline, attributed to various factors including a decrease in high school graduates, lingering impacts of COVID-19, and issues with FAFSA, has contributed to its financial challenges. Frostburg’s enrollment of full-time-equivalent students has decreased by 36% since 2010, leading to a decline in net tuition and fee revenue.
To address the budget deficit, Frostburg assembled a budget review team comprising faculty, staff, and students to identify strategies for financial sustainability. The university’s multi-year plan prioritizes the best interests of students and the institution, with different timelines for implementing each component.
Furthermore, Frostburg’s financial struggles have been exacerbated by reductions in state funding. Cuts to the University System of Maryland’s budget in fiscal 2025 resulted in a $1 million reduction in funding for Frostburg. Additional cuts proposed by Maryland Governor Wes Moore further impacted the university, leading to a $546,000 funding reduction.
Despite these challenges, the University System of Maryland has pledged financial support to Frostburg if the institution successfully implements its cost-cutting plan. This support may include making payments on behalf of Frostburg or allowing the university to defer certain expenses in fiscal 2025 to alleviate financial pressures.
In conclusion, Frostburg State University’s comprehensive cost-cutting plan reflects its commitment to addressing financial deficits while prioritizing the needs of students and the institution. By implementing strategic changes across faculty, administration, athletics, and operations, Frostburg aims to achieve long-term financial stability and ensure its continued success in the higher education landscape.
