Just a Lil' Economic Downturn...

On Wall Street, many brokers had this same reaction as they watched the market fall. Today the market was up but who knows what will happen tomorrow... (photo courtesy of washingtonpost.com)

We’re going to talk the economy. Wait… wake up… stay with me here.
I’m not going to go into details on why the economy is undergoing the biggest crash in 50 years, or the details of a $700 billion bailout plan.

I want to talk about how this economic downturn is going to affect all of us, whether we like it or not, because frankly everyone should notice and care. My goal isn’t to scare you… just wake you up a little.

With the economy on a slippery slop and a $700 billion rescue plan that will put our country in debt (possibly over $1 trillion) for decades to come, we’re going to be facing a lot more challenges than we thought we would as freshmen.

Let us start close to home, our one and only UMD. We’re about to face big, big, BIG cutbacks in the funding from the state. Maryland’s Gov. Martin O’Malley is proposing enormous budget cuts, and education is going to take a hard hit, so in-state and out-of-state students, get ready for a tuition increase to make up for lost funds.

The governor is proposing cutting back $20 million in annual grants and transfer funds for the University System of Maryland. That means between all the colleges in Maryland – Frostburg, Salisbury, UMBC, Towson, etc. – we are going to be fighting to get funds with less money in the pot. Maryland is already facing challenges with the state because Maryland thinks UMD is a “privileged” school and already has enough funding.

Aid programs are also going to take a hit. BRAC grants are going to be reduced by $1 million. On top of that, $1.2 million will be saved by reducing 582 people from the Educational Excellence Awards which provides need-based aid.

Housing? Forget about new dorms being built. The state has already frozen a project to build a new dorm with room for 650 students. Any additional housing brought to this campus for the time being is going to have to be private. So people, start house hunting for next year now if you’re not already set. The private companies can’t make it happen either.

Watch how your classes change next year as departments across the university are facing millions of dollars in budget cuts. That means less resources, possibly faculty lay offs and your small classes might just get bigger.

The new journalism building, Byrd Stadium renovations and Tawes updates are going to probably be the last updates to the campus we see in a while.

Ok, let’s look into the future now. What does everyone come to college for? Jobs? Well, start making yourself the best person out there to get a job, get internships, after school jobs and start to network because, baby, it’s going to be tough.

Thousands of students are going to be entering an ultra-competitive job market at a time when few jobs are going to be available. It’s not only newspapers making huge layoffs. While AIG is taking a $444,000 retreats with their bailout money, smaller businesses all over are going to have to make cuts.

The good news? We’re usually willing to start working at lower salaries. So if you’re willing to take a mediocre salary, you’re a golden replacement to people hanging on to their jobs to get their retirement benefits.

So again, not trying to scare you, just making sure you all know what’s in store. Maybe you’ve lost money in investments, maybe you’ve never invested. Either way, keep an eye on your money and the market. And cross your fingers.