ANNAPOLIS, Md. — Facing a historic fiscal challenge and a $121 million personnel budget shortfall, Maryland Governor Wes Moore has outlined a plan to cut costs through a hiring freeze and voluntary separation program for state employees.
In an email sent to State employees this afternoon, Governor Moore announced the plan to cut that money, which includes buyouts and a hiring freeze starting on July 1, 2025.
The Governor says the State, "is being tested by two storms: An historic fiscal challenge – the worst since the Great Recession – and a federal administration that continues to harm Maryland’s people and the economy."
Maryland's budget was signed into law in May, raising taxes and fees by approximately $1.6 billion while cutting spending by about $1.5 billion —the largest amount in at least 16 years.
Now it needs to cut $121 million from its personnel fund in FY2026.
The state is looking for ways to save money and operate more efficiently, without having to reduce the number of employees, and to work towards eliminating 150 vacant and unfilled positions. Officials with the Moore administration says it hoped to have those figured out by early fall.
One way they hope to accomplish this is by a hiring freeze across all agencies starting July 1. During a call, the Moore administration stated that this will likely remain in effect for the entire fiscal year.
The Moore Administration is also working on a "Voluntary Separation Program," with details to be released in the coming weeks.
The program is being modeled after Voluntary Separation Programs from 2011 and 2015. At that time, certain agencies weren't eligible for the program.
In 2015, employees were offered $15,000 to leave their jobs, plus $200 for every year of service, and three months of healthcare.
In 2011, they were also offered severance pay and benefits.
The University of Maryland System was exempt from those programs in 2011 and 2015. It is also exempt this time around.
The Governor's letter says these actions are being taken "to more effectively navigate the extreme uncertainty caused by federal actions. "
Senate Minority Leader J.B. Jennings criticized the governor's action and says this should've happened sooner.
"Back in February, I questioned the wisdom of expanding state government while facing a $2.8 billion deficit. I said then, and I repeat now: when you’re in a hole, you need to stop digging. The decision to finally enact a hiring freeze and reduce vacant positions is the right one—but it should have happened months ago, before the situation became more urgent," said Senator J.B. Jennings in the statement.
In his letter, Governor Moore says they are working to minimize the impact on current employees and keep them informed throughout the process.
Back in February, Moore announced plans to fill vacant state positions with recently laid off federal workers.
When administration officials were asked about that, they said there are still critical positions where the state is recruiting and hiring, and those federal employees will be prioritized. Officials also say they'll try to connect federal workers with other job opportunities.
