---
title: "MOU Update: Bargaining unit wage impacts following USM agreement"
date: 2026-09-08T16:15:00-04:00
author: Bradley Bower
canonical_url: "https://provost.umd.edu/news/mou-update-bargaining-unit-wage-impacts-following-usm-agreement"
section: News
---
# MOU Update: Bargaining unit wage impacts following USM agreement

*September 8, 2026* — by Bradley Bower
> Sent to university faculty and staff on September 8, 2026

<span>Dear University of Maryland faculty and staff,</span>  
  
<span>On September 1, Governor Wes Moore and the University System of Maryland announced an agreement for FY27 to pay AFSCME represented employees a 2.5 percent merit increase, retroactive to July 1, 2026, and a flat $500 wage increase, effective January 1, 2027. This is directly related to the consolidated Memorandum of Understanding (MOU) between USM and AFSCME. UMD is actively involved in system-wide planning to implement these increases, and we will share further details with affected employees when final. </span>  
  
<span>USM has instructed UMD to utilize fund balance reserves to absorb the financial impact of the negotiated salary increases on the Fiscal 2027 budget. Typically, fund balance is utilized for capital projects and not annual structural expenses, and its utilization is subject to approval by USM and the Board of Regents. Given our current financial circumstances, we cannot provide equivalent increases to employees outside the bargaining unit. </span>  
  
<span>We recognize that our staff perform important roles that contribute to our ability to fulfill UMD’s teaching, research and service missions. The compensation received by one group does not diminish the work or contributions of another, and we know this explanation does not lessen the frustration of employees who will not receive a merit increase at this time. </span>  
  
<span>As we have shared with the community, UMD continues to manage the impacts of more than $104 million in cumulative reductions to our state-funded base budget, projected federal revenue losses, increased energy costs and other growing operating expenses. We will continue to evaluate every responsible option to strengthen revenues and reduce costs, and we will assess the associated immediate and long-term financial impacts of compensation changes in conjunction with other financial pressures the institution is experiencing. As we consider the complex and difficult decisions that may be required, we will remain focused on UMD’s long-term financial sustainability and its ability to provide an accessible, affordable, world-class education. We will approach the choices ahead with accountability, respect, inclusion and a commitment to the shared purpose that unites our community.</span>  
  
<span>We remain committed to supporting and recognizing our entire workforce and to communicating candidly as we navigate these difficult financial circumstances.</span>  
  
<span>Sincerely,</span>


**Darryll Pines Signature**

**Darryll J. Pines**  
*President, University of Maryland*



**Signature of Jennifer King Rice**

**Jennifer King Rice**  
*Senior Vice President and Provost*



**Greg Oler&#039;s Signature**

**Greg Oler**  
*Vice President for Finance and Chief Financial Officer*