New service agency defends expansion of Maryland Core; DLS urges cuts to CRM and some positions

The newly created Department of Service and Civic Innovation (DSCI) presented its fiscal 2026 budget and defended program expansion for Maryland Core’s two service pathways while Department of Legislative Services recommended trimming some one-time and personnel costs.

Jacob Cash of DLS explained the fiscal 2026 allowance as presented in the governor's budget: DSCI’s labeled allowance totals $56,600,000 on the cover page but DLS said that figure double counted special funds that are seeded by general funds; the actual available expenditure authority without double counts is about $41,000,000. DLS flagged a proposed $1,000,000 customer relationship management (CRM) purchase and recommended reducing that amount while retaining $500,000 for a grant‑management system. DLS also recommended reducing the number of new service success coaches proposed in FY 2026, saying the department’s stated coach-to-participant goal of 1:25 would not require as many new hires under DLS projections and proposing a smaller increase in staff.

Secretary Paul Montero told the subcommittee DSCI launched its inaugural Maryland Core cohort less than two years after the Serve Act established the agency and that the department prioritized programmatic scale while reducing initial targets in the governor’s budget to reflect fiscal constraints. Montero said the first cohort had a roughly 84% retention/ completion rate, and described Class 2 as having nearly 600 members representing all 23 counties and Baltimore City. He said members earned recognized credentials and that the statutorily required $6,000 completion award is paid at the end of a nine‑month term.

Interim CFO Lisa Bishop described the CRM as foundational rather than an enhancement, saying it would replace a patchwork of spreadsheets and reduce ongoing staff burden, while also noting DLS’s fiscal concerns. Deputy Secretary Sarah Flomang described a tiered plan to increase wage cost sharing by host organizations: class 3 would require approximately 33% wage subsidization by host sites, with plans to move toward 50% in a later year through phased tiers to preserve access for smaller organizations.

DLS recommended two reductions to the governor’s allowance: (1) $1,000,000 for the proposed CRM, and (2) reductions in funding for additional administrator/coaching positions, leaving five new coaches to meet staffing ratios. DSCI partially concurred and proposed a compromise coach ratio near 1:35 rather than the governor’s 1:25 or DLS’s 1:50.

Ending: The committee had follow‑up questions on retention data and coach ratios; DSCI said it will provide detailed performance and post‑service evaluation results gathered by a third‑party evaluator.