UMD Implements Temporary Salary Reductions Due To $292M Coronavirus Budget Shortfall
COLLEGE PARK, Md. (WJZ) -- Calling it "by far the largest financial crisis in the history of the university," the University of Maryland on Thursday announced a temporary salary reduction among other measures to shore up losses caused by the coronavirus pandemic.
In a news release Thursday evening, the university said the pandemic has caused a projected $292 million shortfall for the current fiscal year.
To address the shortfall, the university plans to temporarily cut salaries for all employees making more than $150,000. The cuts will increase in size based on salary, reaching as much as 10%.
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Roughly 90% of employees will not be subject to cuts, the university said.
The university had previously announced a hiring freeze and restrictions on non-essential travel to save money.
University System of Maryland Chancellor Jay Perman is himself taking a 10% pay cut due to the virus.
Other schools are expected to announce cuts in the coming days.
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