[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6661609,"mediaKeyId","2407300-da4cdcf2a90faa066d61959b72dbd8b2","parentId",2407300,"title","Analysts recommend $100,000 restriction, question vacancy and salary assumptions in DBM personnel budget","audioSeconds",740,"startMs",295000,"endMs",1035000,"viewUrl","/Search/View?dp=1&key=2407300-da4cdcf2a90faa066d61959b72dbd8b2&start=295&end=1035","thumbnailUrl","https://assets.pipeline.soar.com/2407300-da4cdcf2a90faa066d61959b72dbd8b2/thumbnail_295000.jpg","articleUrl","/articles/6661609/Maryland/Analysts-recommend-100000-restriction-question-vacancy-and-salary-assumptions-in-DBM-personnel-budget","mediaUrl","https://secure.pipeline.soar.com/6661609-0db0432bd62df9155ce3f30d18e9b8ed/orig.mp4?Expires=1770926966&Signature=LRQuEmzIekr2lOaw9sJhGu0GhbdOjljbmcFBiyVa-euqQUcEFSBgiDAH-Nrho-af1eWwE6wxMwZa1E--rvyvHwYRuC6jO30gkJMg3~Dg42~qpfkWWCtH0iM4MkzQAPHv8wEDMxon7zrPiwKhuPWtkPGJMaHdRFX9IOjLzMvXDDhAlifu0kY~6nnIkxBJQryfnNLOKs4EetR87ajALgxVTW~rzIwavNZYdgU1RdZelu2wQznK2vP1mrlwbWlDeA6En2sJn2ES87VAnrIdGf0jWUBlqvdquF1yb8NoIrxcvxAKfLdNU09PUTYTb7VG5jKsIkIKlDM1dk34GTvTyMmMxQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland General Assembly - Appropriations","date","2025-02-26T18:48:40.203Z","article","For the record, my name is Jacob Cash. I'm a budget analyst for the Department of Legislative Services, and I'll be presenting the budget for the Department of Budget and Management Office of Personnel Services and Benefits, including the transition of retiree prescription drug coverage to Medicare Part D.

The Department of Legislative Services (DLS) told the Appropriations Committee that the fiscal 2026 allowance for the Department of Budget and Management (DBM) personnel program is $326,500,000 and that much of that funding will be transferred out to support statewide salary actions. DLS flagged multiple issues in the personnel budget: rapid growth in prescription drug spending driven by specialty medications, timing gaps in agency reporting, an ongoing high number of vacant positions relative to budget assumptions, and potential differences between agency-requested funding for health insurance and the amounts shown in agency appendices.

DLS highlighted prescription drug spending as a major driver of cost growth. \"Diabetes is a big driver of both healthcare and prescription costs, with antidiabetic drugs being the largest share of prescription drug costs for some time,\" Jacob Cash said, noting large growth in antidiabetic medication costs in fiscal 2023 and 2024 and changes in utilization after a rule limiting GLP-1 coverage in quarter 3 of fiscal 2024. DLS reported overall prescription drug costs up 13.6% from a year earlier and said three quarterly reports required by annual committee narrative were submitted late, limiting DLS's ability to estimate costs ahead of the fiscal 2026 budget cycle.

On the basis of those timing and data concerns, DLS recommended \"adding budget bill language, restricting $100,000 pending receipt of future quarterly medical, dental, and prescription drug cost reports.\" That recommendation was included in DLS's list of recommended actions presented to the committee.

DLS also recommended reductions linked to salary funding and vacancy assumptions. The analysis showed executive-branch vacancies peaked near 6,500 in October 2022, fell to about 4,730 in April 2024, rebounded to 5,346 in October 2024 and then to 5,222 in the second quarter of fiscal 2025. DLS estimated roughly $140,000,000 in salary funding will not be needed because of vacancy trends and recommended reducing funding for salary actions by $85,200,000 in total funds to reflect a higher budgeted turnover rate (8.6%).

DLS asked DBM to explain a discrepancy it found in agency health insurance appendices: DLS identified a difference of at least $60,000,000 in fiscal 2026 that could require additional funding; DBM told DLS that nonbudgeted funds are available to fill that gap, and DBM and DLS agreed to follow up on the data discrepancy.

DLS also summarized the state's transition of retiree prescription drug coverage to Medicare Part D. Jacob Cash said about 56,595 retirees and dependents were on the state plan and that outreach identified roughly 1,933 additional Medicare-eligible retirees not previously covered by the state drug plan. DLS reported that about 84% of the total group enrolled through the state's vendor and that the transition is estimated to generate approximately $50,000,000 in first-year savings and $100,000,000 in future annualized savings.

Secretary Helene Grady, testifying for DBM, acknowledged the late report submissions and accepted the DLS recommendation on the quarterly reports. \"DBM accepts this recommendation. I personally apologize for the late submissions over the past year,\" Grady said. Grady disputed several DLS budget-cut recommendations, saying negotiated collective bargaining agreements produced the fiscal 2026 1% COLA and that DBM did not concur with deleting that funding. \"DBM feels strongly that our negotiated agreement should be honored,\" she said.

Grady also disputed the DLS vacancy-reduction recommendation, saying the governor's allowance already budgets for statewide reversion and turnover, and that general fund turnover is budgeted at 9.22% for the executive branch (excluding higher education), which she said is close to current trends. DBM described steps to reduce vacancies, including converting contractual positions to regular status and an initiative to recruit separating federal employees for state vacancies.

DLS recommended multiple specific budget actions in its write-up, summarized by the analyst as: restricting $100,000 pending quarterly reports; requesting annual narrative and agency closeout health insurance information; reducing funding for the 1% general salary increase and fiscal 2026 increments; requesting a funding breakdown for the supplemental retirement match; and reducing funds for vacancy savings. Jacob Cash closed by recommending the restricted $100,000 be released at the conclusion of the fiscal 2026 budget hearings if reports satisfy the committee's requirements.

Why this matters: The committee must reconcile DLS technical recommendations, DBM's negotiated labor commitments, and uncertainties in health and prescription cost forecasting as it finalizes fiscal 2026 appropriations. Prescription drug trends, vacancy-driven salary savings and the timing of agency reporting each affect near-term budget choices and the state's projected operating balance.

Recommended follow-ups and outstanding items noted by DLS and DBM include: clearer reconciliation of Appendix O health insurance figures across years, confirmation of the accounting for the supplemental retirement match funding, and timely submission of the quarterly medical, dental and prescription drug reports that DLS cited as late.

Provenance: Transcript testimony introducing the DLS presentation and the analyst's close were used to assemble this article. Topic introduction: Jacob Cash, Department of Legislative Services presentation (transcript segment beginning \"For the record my name is Jacob Cash...\" ). Topic finish: Jacob Cash concluding \"That concludes my presentation and I'm happy to answer any questions you might have.\"","mediaType","Video","parentTitle","APP Committee Session, 2/26/2025 #1","oneSentenceSummary","The Department of Legislative Services told the Appropriations Committee that it found rising prescription drug costs, late reporting and vacancy-related salary savings in the Department of Budget and Management personnel budget and recommended adding budget bill language to restrict $100,000 pending submission of quarterly medical, dental and prescription drug cost reports.","taxTitle","Appropriations Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland","taxId",15058,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6661605,"AFSCME leaders urge Appropriations Committee to preserve negotiated raises, warn of staffing shortages and safety risks",657,1883000,2540000,"/Search/View?dp=1&key=2407300-da4cdcf2a90faa066d61959b72dbd8b2&start=1883&end=2540","https://assets.pipeline.soar.com/2407300-da4cdcf2a90faa066d61959b72dbd8b2/thumbnail_1883000.jpg","/articles/6661605/Maryland/AFSCME-leaders-urge-Appropriations-Committee-to-preserve-negotiated-raises-warn-of-staffing-shortages-and-safety-risks","https://secure.pipeline.soar.com/6661605-415f55fd05a7291a6c08ab28722446d9/orig.mp4?Expires=1770926966&Signature=AojSjK9~bcBE81JQHQjO0gHBgiZOexN6facGhiiFw7HDXhTOtxJa294rX27a6uINqVPHKlD4tA7BQ~ngEqMCm5nY05bg6ijSPjSfEf1f-JEK~kDeer6TmW3fAzqepXveuCeljwPAXmjrHJW3dIO1rmBnE61aIbzkCDUZ97PKFv0op~B4yfzwhxiXeX~bsZdxHs9XWAC1oQGJXDn-RGClkTBl8izsC88rXU1V4~f5l1UP-2N9KFthZpUasPfxzOAL9K9zecHfHuwGdVJhr65ZV1RsL3ombsX~DGfylZrthMqDNYcjuEjTs3VfowuNH8-Q9ecQGusmm6It3DyHQHJQ7A__&Key-Pair-Id=KUT5TJCACFTXG","Patrick Moran, president of AFSCME Maryland Council 3, told the Appropriations Committee the union opposes DLS's recommendation to delete negotiated cost-of-living and merit increases in fiscal 2026. \"We strongly oppose the DLS's recommendation to cut the negotiated COLA and merit increases our members have earned for fiscal year 2026,\" Moran said, adding that the agreements were reached through negotiation and \"a deal was made and our contract must be respected and upheld.\"

Several AFSCME local leaders and long-tenured front-line staff followed Moran with personal testimony about understaffing and the effects of pay that lags inflation. Reneka Robinson, president of AFSCME Local 3661, described high caseloads and safety concerns in community supervision work: \"Right now, the Gaithersburg office has 4 agents responsible for 633 *** offenders. That's a caseload average of 158 per agent, despite the recommended standards of 50 to 1 for moderate to high cases,\" she said, and urged the committee to avoid cuts that would worsen staffing and risk.

Oluwadamola Olaniyo, who identified themself as a correctional officer and president of a local bargaining unit, said overtime spending has ballooned and voiced safety concerns inside state prisons. \"Since 2020, DPSCS has spent over hundred and 50,000,000 annually on overtime, and it is projected to spend $230,000,000 in fiscal year 2026. I am the face of those overtime hours, and I'm tired,\" Olaniyo said, asking for more hires and higher pay to reduce reliance on mandatory overtime.

Shanae Parker, a family investment specialist in the Baltimore City Department of Social Services and a 25-year state employee, described the consequences of understaffing for clients who rely on in-person assistance for benefits. \"When rising cost for food, gas, rent, and insurance without the COLA that keeps up I feel like I'm starting each pay period with a pay cut,\" Parker said, adding that online systems and automated tools cannot replace staff who provide one-on-one help to vulnerable clients.

Jenny Reese, a licensed practical nurse at Springfield Hospital Center, said staffing deficits have kept inpatient units closed and left people waiting in detention. \"We currently have over 220 defendants languishing in local detention centers because the state refuses to invest in enough staff to open the empty units at my hospital and other MDH facilities statewide,\" Reese told the committee. She urged funding that would allow hospitals to staff and open beds and to meet court-mandated timelines for admission.

Why this matters: Union witnesses tied pay and staffing to worker safety, patient care and corrections outcomes. Several speakers urged the committee to seek alternatives to cutting negotiated increases, including changes to revenue or tax policy, rather than reducing employee compensation.

No formal committee action on AFSCME requests was taken during the hearing. Committee members thanked the witnesses for testimony and recognized their public service.

Provenance: Public testimony from AFSCME representatives and front-line employees recorded during the hearing.","Union leaders and front-line state employees told the Appropriations Committee that cutting negotiated pay would worsen staffing shortages and public safety risks across corrections, mental health hospitals and human services; witnesses described high caseloads, overtime costs and staffing ratios that remain unmet.","actionData","errors"]

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Analysts recommend $100,000 restriction, question vacancy and salary assumptions in DBM personnel budget

AFSCME leaders urge Appropriations Committee to preserve negotiated raises, warn of staffing shortages and safety risks