RB.35
University of Maryland Biotechnology Institute
University System of Maryland
Operating Budget Data
($ in Thousands)
FY 01 FY 02 FY 03 % Change
Actual Working* Allowance Change Prior Year
General Funds $16,244 $16,626 $17,164 $537 3.2%
Other Unrestricted Funds 4,865 9,036 7,129 (1,907) (21.1%)
Total Unrestricted Funds 21,110 25,663 24,293 (1,370) (5.3%)
Restricted Funds 16,718 17,300 17,300 0
Total Funds $37,828 $42,963 $41,593 ($1,370) (3.2%)
* Does not reflect anticipated hiring freeze savings of $158,351. Does reflect a budget amendment not yet submitted by the
Department of Budget and Management that adds $3.3 million in unrestricted funds and $2.3 million in restricted funds.
Ä The allowance represents 86.3% of the institution’s fiscal 2003 funding guideline. Its guideline
attainment in fiscal 2002 was 98.3% with the legislative appropriation.
Ä The reduction in other unrestricted funds is due to a reduction in the use of fund balance, partially offset
by budgeted increases in indirect cost recovery.
Personnel Data
FY 01 FY 02 FY 03
Actual Working Allowance Change
Regular Positions 259.09 351.17 354.17 3.00
Contractual FTEs 63.00 80.00 68.00 (12.00)
Total Personnel 322.09 431.17 422.17 (9.00)
Vacancy Data: Regular Positions
Budgeted Turnover: FY 03 24.90 7.03%
Positions Vacant as of 12/31/01 7.66 2.18%
Ä The allowance provides three additional regular positions for faculty.
Note: Numbers may not sum to total due to rounding.
For further information contact: M. Kathleen Gardiner Phone: (410) 946-5530
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RB.35 - USM - University of Maryland Biotechnology Institute
Analysis in Brief
Issues
Columbus Center Vacancy: The Columbus Center has now been vacant for more than four years.
Because it appears that the Columbus Center will remain vacant through fiscal 2003, the Department of
Legislative Services (DLS) recommends the adoption of budget language restricting the expenditure
of funds by the system office until the office has transferred $700,000 to the University of Maryland
Biotechnology Institute (UMBI) for support of the fiscal 2003 operations of the Christopher
Columbus Center. DLS also recommends the adoption of budget language to make clear that any
cost necessary to secure a suitable tenant, including the services of a real estate consultant, shall
be the responsibility of the system office.
The recommended language would appear with the University System of Maryland (USM) Office
appropriation and would read:
, provided that $700,000 in general funds for the University System of Maryland Office may not
be expended until evidence of allocation of $700,000 from the University System of Maryland
Office current unrestricted fund balance for support of the fiscal 2003 operations of the
Christopher Columbus Center is submitted to the budget committees. This will ensure that the
University System of Maryland (USM) and the University of Maryland Biotechnology Institute
share the costs of the operations and maintenance of the Christopher Columbus Center until
full occupancy can be achieved. If a tenant makes rent payments adequate to absorb the cost
of maintaining the vacant space, the transfer from the System Office may be prorated to reflect
only the time the space remained vacant. All costs associated with securing a suitable tenant
shall be the responsibility of the System Office. The General Assembly urges USM to proceed
precipitously to secure a suitable tenant for the Columbus Center. It is the intent of the
General Assembly that the system resolve all questions about the use and lease of the space and
begin actively seeking a tenant no later than July 1, 2002.
Budget Structure: Due to the specialized nature of the institution, UMBI funding is budgeted in only one
program, Research. The Public Service, Institutional Support, and Plant programs appear applicable.
Using other budget programs would allow for a more thorough examination of the institution’s budget.
DLS recommends that the institution use all available and relevant budget programs.
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Recommended Actions
1. Add language to the University System of Maryland Office
appropriation to ensure support for the Christopher Columbus
Center.
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RB.35
University of Maryland Biotechnology Institute
University System of Maryland
Operating Budget Analysis
Program Description
The University of Maryland Biotechnology Institute (UMBI) is one of two nondegree granting
institutions within the University System of Maryland (USM). UMBI was founded in 1985 with two
research centers. Since then, it has expanded to encompass five interdisciplinary research centers, at
various locations throughout the State. As shown below, each center has a unique focus related to
biotechnology:
Ä Center for Advanced Research in Biotechnology (CARB): Founded in 1985 to study protein
engineering, structure, and function; providing advanced technical capabilities to the biotechnology
industry; located in Shady Grove, Montgomery County;
Ä Center of Marine Biotechnology (COMB): Founded in 1985; specializes in research in molecular
biology, molecular genetics, bioprocess development of aquaculture fisheries, marine microbial
products and processes, and marine pollution/environmental remediation; located at the Columbus
Center in the City of Baltimore’s Inner Harbor;
Ä Medical Biotechnology Center (MBC): Founded in 1986 to conduct medical biotechnology
research and training; housed within the medical research facility at the University of Maryland
Baltimore (UMB) campus, City of Baltimore.
Ä Center for Agricultural Biotechnology (CAB): Founded in 1987 to apply research in molecular
biology to fundamental agricultural and environmental problems; located at the University of
Maryland, College Park campus, Prince George’s County; and
Ä Institute of Human Virology (IHV): Founded in 1996 to combine basic research, epidemiology,
clinical research toward the discovery of diagnostics, and therapeutics in human virology; housed
within the medical research facility in Baltimore.
In addition to its commitment to conducting cutting-edge research and serving as a catalyst for
business development of the biotechnology industry in the State, UMBI contributes to the education and
training of students at all levels in the life sciences and biotechnology. Programs include hands-on K-16
science and technology education programming for teachers and students, internships, and VIRTUE – a
collaborative virtual university program in the marine sciences with universities in Sweden and Norway.
UMBI faculty members also teach and advise about 230 degree-seeking students, postdoctoral trainees,
and research trainees each year.
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Fiscal 2002 Actions
The 2002 working appropriation reflects a reduction of $78,897 as a result of cost containment action
taken by the Board of Public Works. The working appropriation does not reflect $158,351 in additional
savings attributable to the hiring freeze. To meet the combined savings target of $237,248, the institution
has delayed hiring to fill vacancies.
Increase in New Positions in Fiscal 2002
The number of positions in the fiscal 2002 working appropriation has increased by 61.00 over the fiscal
2002 legislative appropriation. Exhibit 1 lists the positions added during fiscal 2002. All were added in
the Research program, because UMBI uses no other budget programs. UMBI added these positions
pursuant to budget bill language that allows USM to add up to 568 regular positions above the 2002
allowance. Of the new positions at UMBI, 42 are contractual conversions. Despite these conversions,
the institution’s contractual workforce increased by 17 FTEs in fiscal 2002.
Exhibit 1
New Positions Added During Fiscal 2002
Program Position No. of Positions
Research Faculty 48.00
Administrative Assistant 2.00
Facilities Assistant 1.00
Information Technology Support 3.00
Lab Helper 1.00
Office Clerk 3.00
Research Associate 1.00
Security Officer 1.00
Specialist 1.00
Total 61.00
Source: University of Maryland Biotechnology Institute
Governor’s Proposed Budget
As shown in Exhibit 2, the fiscal 2003 allowance is $41.6 million, a decrease of $1.4 million, or
3.2%, relative to the fiscal 2002 working appropriation, not including hiring freeze savings. The general
fund portion of the budget increases 3.2%, or $537,466. Current unrestricted funds, excluding general
funds, decrease $1.9 million. The decline is due to a $2.7 million reduction in the use of fund balance,
partially offset by budgeted increases in indirect cost recovery. The use of fund balance supported one-
time expenses, such as new faculty start-up packages, so the reduced budget should not affect the ongoing
operations of the institution.
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Exhibit 2
Governor’s Proposed Budget
University of Maryland Biotechnology Institute
($ in Thousands)
Other Total
How Much It Grows: General Unrestricted Restricted Restricted
Fund Fund Fund Fund Total
2002 Working Appropriation $16,626 $9,036 $25,663 $17,300 $42,963
2003 Governor’s Allowance 17,164 7,129 24,293 17,300 41,593
Amount Change $537 ($1,907) ($1,370) $0 ($1,370)
Percent Change 3.2% (21.1)% (5.3)% 0.0% (3.2)%
Where It Goes:
Personnel Expenses
New positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $319
Ongoing personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Other Changes
Elimination of fiscal 2002 one-time costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,739)
Total ($1,370)
Note: Numbers may not sum to total due to rounding.
The allowance also includes three new positions at a cost of $319,000. The three positions are
assistant professors. Other personnel increases are $50,468 and include the 2002 cost-of-living adjustment
(COLA) annualization, merit increases, and benefit cost increases.
Performance Analysis: Managing for Results
General Fund Increases in Recent Years
As shown in Exhibit 3, general fund support for UMBI has kept pace with inflation in recent years.
The reduction in general funds in fiscal 2000 was the result of phasing out start-up funding for the Institute
of Human Virology. Annual increases are small compared to other institutions, but UMBI attained almost
100% of its funding guideline in fiscal 2001 and 2002 and has above average attainment with the fiscal
2003 allowance.
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Exhibit 3
General Fund Appropriations
Fiscal 1998 through 2003
($ in Thousands)
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1998 1999 2000 2001 2002 Working* 2003 Allowance
Appropriations Inflation
* Does not reflect hiring freeze savings.
Source: The Department of Legislative Services
Research and Employment
Unlike most other institutions, UMBI does not have student enrollment. Rather, its main function is
research. Exhibit 4 compares growth in regular positions and in restricted research expenditures from
fiscal 1998 through 2002. Restricted research expenditures are those associated with a particular contract
or grant for a specified purpose.
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Exhibit 4
Research and Employment
Fiscal 1998 through 2002
Cumulative
FY 1998 FY 2002 % Change
Restricted research expenditures $12,521,571 $17,300,000 38.2%
Regular positions 267.54 351.17 31.3%
Total employed FTEs 319.54 431.17 34.9%
Source: Maryland Budget Books, 2001 through 2003
Performance
While each institution has its own mission and goals, the activities of each should support the goals
of the State Plan for Postsecondary Education ("State Plan"). The specialized nature of UMBI will limit
its contribution in some areas, but its performance should generally support the State goals.
The first goal for the State Plan is to "achieve and sustain a preeminent statewide array of
postsecondary educational institutions that are recognized for their distinctiveness and their excellence
nationally and internationally." In support of this goal, UMBI seeks to increase the number of
international scientific meetings it organizes each year. Exhibit 5 shows that the institution has organized
one such meeting each year since at least fiscal 1998. In the fiscal 2002 Managing for Results submission,
the institution projected that it would increase the number of meetings organized to two per year beginning
in fiscal 2001. This projected increase has been delayed two years in the most recent submission.
Exhibit 5
Goal 1: Achieve and sustain a preeminent statewide array of postsecondary educational institutions that are
recognized for their distinctiveness and their excellence nationally and internationally.
FY FY FY FY Total % FY FY FY
1998 1999 2000 2001 Change 2002 2003 2004
Actual Actual Actual Actual 98-02 Est. Est. Goal
International meetings
organized annually 1 1 1 1 0.0% 1 2 2
Sponsored research funding $17.0 $20.0 $17.2 $21.7 27.6% $21.9 $22.5 $23.8
Source: Maryland Budget Books, 2002 and 2003
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Another measure of eminence is the ability to attract contract and grant support. As shown in Exhibit
5, sponsored research funding increased $4.5 million in fiscal 2001, or 26%. Projected growth in future
years ranges from 0.9% to 5.8% per year. Slow growth is surprising considering the faculty that the
institution has hired and plans to hire and its aspirations to be a leader in biotechnology. DLS noted
projections of slow growth in sponsored research last year as well. The President should comment on
why the institution is projecting such small increases in sponsored research.
The third and fourth goals of the State Plan are to promote the State’s economic vitality and to
promote basic and applied research. The institution has a number of measures related to these goals, as
shown in Exhibit 6. Four such measures are increasing or are projected to increase, albeit slowly: new
research collaborations, collaborations with industry, biotech companies using UMBI research, and patents
granted per year. The institution earned only $206 in licensing fees in 1998, followed by a large increase
in fiscal 1999. Since 1999, licensing fees and royalties collected have declined almost 50%.
Exhibit 6
Goal 4: Support and encourage basic and applied research.
Total
1998 1999 2000 2001 Change 2002 2003 2004
Actual Actual Actual Actual 98-01 Est. Est. Goal
# of new research
collaborations with key
academic and industrial
institutions (cumulative) n/a n/a n/a 1 n/a 2 3 3
# of collaborations with
industry 10 10 11 11 10.0% 12 13 16
Licensing fees and royalties
per year $206 $335,000 $195,000 $177,000 85,822% $180,000 $200,000 $350,000
New biotech companies
using UMBI research
(cumulative) 2 2 2 2 0.0% 2 3 4
Patents granted per year 4 5 5 5 25.0% 5 6 7
Source: Maryland Budget Books, 2002 and 2003; University of Maryland Biotechnology Institute
The fifth goal of the State Plan is to "strengthen teacher preparation and improve the readiness of
students for postsecondary education." As a research center, the institution does not have teacher
preparation programs, but its science and technology program with K-12 teachers and students is
furthering this goal, as shown in Exhibit 7. Participation in the K-12 program has increased almost 50%
over three years, but the institution has yet to meet its original target of serving 7,000 students and
teachers. The Department of Legislative Services (DLS) recommends that the institution separate
this measure into two measures, one for K-12 students and one for K-12 teachers.
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Exhibit 7
Goal 5: Strengthen teacher preparation and improve the readiness of students for postsecondary education.
Total
1998 1999 2000 2001 Change 2002 2003 2004
Actual Actual Actual Actual 98-01 Est. Est. Goal
# of K-12 students and teachers
served annually 4,200 3,188 3,620 4,750 13.1% 4,900 5,300 6,000
Source: Maryland Budget Books, 2002 and 2003; University of Maryland Biotechnology Institute
The sixth goal of the State Plan is to "provide high quality academic programs for a population of
increasingly diverse students." UMBI is furthering this goal by collaborating with other institutions to
bring its science and technology expertise to diverse groups of students. As shown in Exhibit 8, since
1998, the institution has added three collaborative education programs, one of which is with a historically
black institution (HBI). It plans to introduce one more program with HBIs in the next three years. DLS
recommends that the institution narrow the definition of these measures to include only degree or
certificate programs with degree-granting institutions. K-12 programs are already addressed in
another measure. Training programs for professionals do not connote the same rigor as degree and
certificate programs and should be treated separately.
Exhibit 8
Goal 6: Provide high-quality academic programs for a population of increasingly diverse students.
Total
1998 1999 2000 2001 Change 2002 2003 2004
Actual Actual Actual Actual 98-01 Est. Est. Goal
# of collaborative bioscience
education and training
programs 1 2 2 3 200% 3 4 5
# of collaborative programs
with HBIs 1 2 2 2 100% 3 3 3
Source: Maryland Budget Books, 2002 and 2003; University of Maryland Biotechnology Institute
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Unfortunately, UMBI’s choice of measures makes it difficult to document whether the institution is
making progress. Several measures are loosely defined and open to interpretation, rather than concrete
and unambiguous. Many of the institution’s measures relate to the process of doing research, rather than
the outcomes of doing good research. For example, one measure is the "number of new faculty to build
critical programs." The definition of a "critical" program is imprecise. In addition, the benefit of new
faculty building critical programs should be reflected in other measures when they attract additional
sponsored research and generate technology for patent and commercialization. Other measures with
similar concerns are:
Ä international meetings organized annually;
Ä new research collaborations with key academic and industrial institutions;
Ä number of collaborations with industry;
Ä number of collaborative bioscience education/training programs;
Ä number of collaborative programs with HBIs; and
Ä number of legislators, journalists, and others attending biotechnology workshops.
The institution maintains that its measures must be unique because its mission is unique. Other USM
institutions, however, have strong research missions and have adopted more precise measures. Examples
of such measures (and what they measure) include:
Ä number of refereed publications (research productivity);
Ä number of citations per refereed publication (relevance in the field);
Ä research expenditures per full-time faculty (research activity, efficiency); and
Ä research expenditures per faculty member compared to Carnegie Research Intensive universities
(comparison to peers).
The institution believes that the latter two measures are inappropriate because the information they
convey is reflected in the current measure of sponsored research. It is also concerned about statistical
volatility due to the small UMBI faculty and the small grant income of new faculty members. In contrast
to sponsored research, however, the suggested measures control for small faculty size by measuring
research expenditures per faculty. Statistical volatility can be avoided by using a two- or three-year rolling
average. The issue of new faculty can be addressed by defining the measure to include only faculty at the
institution two years or longer.
DLS recommends that the institution adopt more precise, rigorous, and relevant measures
related to research.
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In summary, with its current measures UMBI has demonstrated slow or no progress since 1998. For
example, the institution has not increased its international meetings, has engaged in only one additional
collaboration with industry, and no additional biotech companies are using UMBI research. Sponsored
research funding has increased $4.7 million in three years, but licensing fees and royalties collected have
declined almost 50% since 1999. Several of the institution’s measures are imprecisely defined, lack rigor,
and should be replaced with more concrete and outcome-oriented measures.
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Issues
1. Columbus Center Vacancy
During the 1998 legislative session, DLS first discussed the issue of tenancy at the Christopher
Columbus Center. The Center of Marine Biotechnology (COMB) occupies part of the building, but a
large exhibit hall and some office space have been vacant for over four years. In its analysis in 1998, DLS
recommended that the President comment on "the process for determining appropriate uses for the
[vacant] space."
The total cost of operating the Columbus Center, including vacant space, is about $2.1 million per
year. UMBI’s appropriation provides $1.4 million, leaving a $700,000 shortfall that, until fiscal 2002,
UMBI supported on its own. For the first time in fiscal 2002, budget bill language required the USM
Office to provide slightly over half the additional cost by transferring $370,000 from its unrestricted fund
balance to UMBI. The General Assembly also urged USM and UMBI to “proceed expeditiously” to
settle on an appropriate use of the vacant space. Four years after DLS' first recommendation, the space
is still vacant.
In October 2001, UMBI was prepared to take to the USM Board of Regents an unsolicited lease
proposal from a commercial interest. Immediately prior to the meeting at which a board committee would
consider the proposal, the institution withdrew it, after reconsidering bringing forward a single, unsolicited
proposal without the benefit of an open, deliberate search process.
In November 2001, the Finance Committee of the Board of Regents took responsibility for finding a
tenant for the vacant Columbus Center space. UMBI is providing staff support for the committee’s effort.
Through a request for proposals (RFP), the committee has sought the service of a real estate advisory
consultant. To date, the RFP for a real estate consultant has not generated any responses. The consultant
RFP notes that a contract award is anticipated about March 8, 2002.
The Board of Regents, in addition to hiring a consultant, must determine whether bond restrictions
may limit the type of tenant suitable for the space and/or the terms of the lease. The possibility of federal
restrictions on use was raised last year, and the Office of the Attorney General is satisfied that no federal
restrictions exist. It is now examining whether bonds issued by the City of Baltimore and/or the State of
Maryland restrict the use of the space. Public financing also calls into question whether the lease may
generate a profit for the institution or system. Bond or grant terms may require repayment to the city or
State if the lease generates a profit. City and State bond counsels have not yet responded to inquiries
about restrictions related to use or profit.
The consultant RFP suggests that finding and selecting a suitable tenant will take 11 to 12 months after
a real estate consultant is hired. The institution expects that renovations to the facility will be necessary
to satisfy the needs of any tenant and anticipates that such renovations will take 6 to 12 months to
complete. If that schedule proves true, the space will not be occupied until August 2003 at the earliest.
DLS recommends that the President and Chancellor discuss with the subcommittee:
Ä the status of the effort to secure an appropriate tenant;
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Ä the respective roles and responsibilities of the institution, the system, and the Board of Regents
with respect to the Columbus Center tenant search;
Ä why it has taken more than four years to lease the space; and
Ä the system’s contingency plans, if any, to address continued vacancy.
UMBI bore the full cost of operating the Columbus Center, including vacant space, for four years
before sharing it with the USM Office in fiscal 2002. Because it appears that the Columbus Center
will remain vacant through fiscal 2003, DLS recommends the adoption of budget language
restricting the expenditure of $700,000 by the system office until the office has transferred $700,000
from the University System of Maryland Office current unrestricted fund balance for support of
the fiscal 2003 operations of the Christopher Columbus Center.
DLS also recommends the adoption of budget bill language to make clear that any cost
necessary to secure a suitable tenant, including the services of a real estate consultant, shall be the
responsibility of the system office. The language also expresses the intent of the General Assembly
that the system move precipitously to seek a tenant for the center.
2. Budget Structure
Due to the specialized nature of the institution, UMBI funding is budgeted in only one program,
Research. Its expenditures and employees, regardless of their function, are considered to be part of the
Research program.
Several other budget programs appear to be relevant to UMBI. For example, the institution has a K-
12 program, SciTech, to introduce students and teachers to science and technology. It is an education
program and does not further research. In another institution, SciTech might be considered part of the
Public Service program. Second, the institution has five research centers in three locations across the
State. The operation and maintenance of UMBI’s labs and other facilities would fall under the Plant
program at any other institution. Finally, the institution has a president, two vice presidents, and
administrative and fiscal staff. At any other institution, that general administration activity would be
considered Institutional Support.
The amount of funding outside the Research program is small but not insignificant. An initial review
of the personnel detail provided in the Governor’s Budget Books suggests that an estimated 25% of
UMBI’s 351 positions in fiscal 2002 may fall in programs other than Research. The fiscal 2002
appropriation associated with those positions is $4.6 million, or 25% of the institution’s spending for
personnel.
Classifying these positions and expenditures under Research obscures the institution’s true overhead
costs, prevents a thorough examination of the institution’s budget, and may skew systemwide analyses.
The implications of the State’s investment in facilities, such as the second building for the Center for
Advanced Research in Biotechnology (CARB II), would be more apparent if the institution used the Plant
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budget program. Particularly as the institution grows, an examination of its investments in plant, pre- and
post-award research support, K-12 program, and other nonresearch activities will be advisable.
According to the institution, its Public Service activities are too small to be of consequence in the
budget. It maintains that virtually all its spending and personnel support only the Research program and
therefore would be reported in the Research program even at another institution. Nevertheless, it remains
impossible to assess the plant, administrative, and other overhead spending of the institution given the
current budget structure.
DLS recommends that the institution use all available and relevant budget programs.
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Recommended Actions
1. Add the following language to the University System of Maryland Office appropriation:
, provided that $700,000 in general funds for the University System of Maryland Office may not
be expended until evidence of allocation of $700,000 from the University System of Maryland
Office current unrestricted fund balance for support of the fiscal 2003 operations of the
Christopher Columbus Center is submitted to the budget committees. This will ensure that the
University System of Maryland (USM) and the University of Maryland Biotechnology Institute
share the costs of the operations and maintenance of the Christopher Columbus Center until full
occupancy can be achieved. If a tenant makes rent payments adequate to absorb the cost of
maintaining the vacant space, the transfer from the System Office may be prorated to reflect only
the time the space remained vacant. All costs associated with securing a suitable tenant shall be
the responsibility of the System Office. The General Assembly urges USM to proceed
precipitously to secure a suitable tenant for the Columbus Center. It is the intent of the General
Assembly that the system resolve all questions about the use and lease of the space and begin
actively seeking a tenant no later than July 1, 2002.
Explanation: In previous years, the University of Maryland Biotechnology Institute has had to
absorb the entire operating costs of the Christopher Columbus Center, including vacant space,
despite an agreement with the USM Office that it is a shared system responsibility. In fiscal 2002,
the system shared the cost. This language requires USM to continue to share in the financial
burden of the unoccupied space. In addition, it provides that any cost necessary to secure a
suitable tenant shall be the responsibility of the USM Office.
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Appendix 1
Current and Prior Year Budgets
Current and Prior Year Budgets
University of Maryland Biotechnology Institute
($ in Thousands)
Other Total
General Unrestricted Unrestricted Restricted
Fund Fund Fund Fund Total
Fiscal 2001
Legislative
Appropriation $16,304 $5,452 $21,756 $13,168 $34,924
Deficiency
Appropriation 0 0 0 0 0
Budget
Amendments (60) 2,096 2,036 4,033 6,069
Reversions and
Cancellations 0 (2,683) (2,683) (482) (3,165)
Actual
Expenditures $16,244 $4,865 $21,110 $16,718 $37,828
Fiscal 2002
Legislative
Appropriation $16,705 $5,733 $22,438 $15,042 $37,481
Budget
Amendments (79) 3,303 3,224 2,258 5,482
Working
Appropriation $16,626 $9,036 $25,663 $17,300 $42,963
Note: Numbers may not sum to total due to rounding.
Fiscal 2001
In fiscal 2001, the institution expended about $2.9 million more than its legislative appropriation of
$34.9 million. The restricted fund increase of $3.6 million is due to increased contract and grant activity,
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mainly at the Institute of Human Virology. The institution cancelled $482,000 in restricted funds, due to
slower than expected contract and grant activity in the last two months of the year. In unrestricted funds,
the institution brought forward from fiscal 2000 over $2 million at the Institute of Human Virology but
cancelled $2.7 million, mostly due to unspent faculty start-up packages. Some faculty were not hired as
planned prior to the end of the fiscal year. In other cases, new faculty did not spend their start-up
packages in 2001 because they generally have two to three years to use start-up funding. About $1 million
of the cancellation was due to lower than expected expenses related to the Designated Research Initiative
Fund and sales and services of educational activities.
Fiscal 2002
In fiscal 2002, statewide cost containment reduced UMBI’s budget by $78,897. An anticipated budget
amendment increases unrestricted funds by $3.3 million due to $3.2 million in carryforward funds from
fiscal 2001 and $148,519 in educational sales and services. The amendment also increases restricted funds
by $2.3 million due to increased contract and grant activity.
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Object/Fund Difference Report
University of Maryland Biotechnology Institute
FY02
FY01 Working FY03 FY02 - FY03 Percent
Object/Fund Actual Appropriation Allowance Amount Change Change
Positions
01 Regular 259.09 351.17 354.17 3.00 0.9%
02 Contractual 63.00 80.00 68.00 (12.00) (15.0%)
Total Positions 322.09 431.17 422.17 (9.00) (2.1%)
Objects
01 Salaries and Wages $ 20,229,283 $ 23,310,089 $ 23,679,557 $ 369,468 1.6%
02 Technical & Spec Fees 236,950 373,710 358,710 (15,000) (4.0%)
03 Communication 444,293 386,520 264,020 (122,500) (31.7%)
04 Travel 633,006 618,718 508,718 (110,000) (17.8%)
06 Fuel & Utilities 1,629,451 1,650,300 1,650,300 0 0%
07 Motor Vehicles 727 11,850 10,428 (1,422) (12.0%)
08 Contractual Services 7,137,208 8,458,404 8,011,220 (447,184) (5.3%)
20
09 Supplies & Materials 5,645,002 5,824,012 5,281,961 (542,051) (9.3%)
10 Equip - Replacement 10,325 348,520 298,520 (50,000) (14.3%)
11 Equip - Additional 785,174 1,200,595 926,766 (273,829) (22.8%)
12 Grants, Subsidies, Contr 406,064 347,200 192,975 (154,225) (44.4%)
13 Fixed Charges 198,737 407,877 404,877 (3,000) (0.7%)
14 Land & Structures 471,456 25,000 5,000 (20,000) (80.0%)
Total Objects $ 37,827,676 $ 42,962,795 $ 41,593,052 ($ 1,369,743) (3.2%)
Funds
40 Unrestricted Fund $ 21,109,599 $ 25,662,795 $ 24,293,052 ($ 1,369,743) (5.3%)
43 Restricted Fund 16,718,077 17,300,000 17,300,000 0 0%
RB.35 - USM - University of Maryland Biotechnology Institute
Total Funds $ 37,827,676 $ 42,962,795 $ 41,593,052 ($ 1,369,743) (3.2%)
Note: Full-time and contractual positions and salaries are reflected for operating budget programs only.
Appendix 2
Fiscal Summary
University of Maryland Biotechnology Institute
FY02 FY02
FY01 Legislative Working FY01 - FY02 FY03 FY02 - FY03
Unit/Program Actual Appropriation Appropriation % Change Allowance % Change
02 Research $ 37,827,676 $ 37,480,906 $ 42,962,795 13.6% $ 41,593,052 (3.2%)
Total Expenditures $ 37,827,676 $ 37,480,906 $ 42,962,795 13.6% $ 41,593,052 (3.2%)
Unrestricted Fund $ 21,109,599 $ 22,438,479 $ 25,662,795 21.6% $ 24,293,052 (5.3%)
Restricted Fund 16,718,077 15,042,427 17,300,000 3.5% 17,300,000 0%
Total Appropriations $ 37,827,676 $ 37,480,906 $ 42,962,795 13.6% $ 41,593,052 (3.2%)
21
RB.35 - USM - University of Maryland Biotechnology Institute
Appendix 3