State officials are signaling that Gov. Martin O'Malley's hallmark tuition freeze at public universities could end soon as Maryland grapples with a budget crisis that shows few signs of easing.
"I think the time has come to look at moderate tuition increases," said state Treasurer Nancy K. Kopp at a Wednesday meeting of the State Board of Public Works, where $281.5 million in midyear cuts to higher education and other agencies were approved.
O'Malley, a Democrat who sits on the spending panel, told her that many agree. The freeze - a campaign pledge that O'Malley has honored since his election in 2006 - was "not meant to last forever," he said.
Comptroller Peter Franchot, the third member of the board, later quipped that it was the most he'd seen O'Malley "thaw" on one of his signature accomplishments.
The board was forced to approve the deep cuts even though the state's budget year began a little more than three weeks ago, and officials lamented the dire economic situation that will lead to at least $420 million more in reductions by Labor Day.
By law, the state's budget must be balanced, and slumping tax revenue collections are triggering offsetting budget cuts - a condition in nearly every state.
O'Malley has long championed affordable tuition as a way to help Maryland families and develop an educated work force in the state. But budget woes mean that tuition could rise on O'Malley's watch for the first time as the governor prepares for an expected re-election bid next year.
While it is too late to change tuition for the semester that begins next month, University System Chancellor William E. Kirwan said an increase for the semester that begins in January is "definitely possible," though he said it is premature to speculate on whether one would be necessary or how large it might be.
"We need a little more information on where the bottom is in terms of the decline in state revenues," he said. "We're undoubtedly not out of the woods yet."
Kirwan has scheduled a conference call this morning with the Board of Regents to discuss Wednesday's nearly $40 million in cuts to the university system, but not tuition, he said.
Higher education is one of the largest discretionary areas in the state's $14 billion operating budget, and university officials can offset budget reductions by raising tuition, if the regents agree.
