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Maryland DBM describes state-paid family and medical leave plan, seeks technical amendments

2574135 · March 12, 2025
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Summary

The Department of Budget and Management told the Appropriations Committee that HB 15-03 would provide paid family and medical leave to state executive-branch employees beginning July 1, 2026, paid at employees’ regular rate and without employee payroll contributions.

The Department of Budget and Management told the House Appropriations Committee that HB 15-03 would provide state executive-branch employees paid family and medical leave beginning July 1, 2026, at their regular pay rate and without payroll contributions by employees.

“This bill, HB 15 oh 3, is the outcome of the negotiations and the state's leave proposal for paid family and medical leave that not only complies with but exceeds the requirements of Maryland's Family and Medical Insurance Program,” Secretary Helene Grady said in the committee hearing. Grady said the proposal covers temporary employees and removes hours-worked eligibility thresholds for state staff.

The department and its legal team proposed a set of technical amendments. Danielle Miller, an assistant attorney general assigned to DBM, said the changes would replace references to the department making certain leave decisions with each employee’s appointing authority, and would align the appeal process and the definition of “application year” with regulations under the Department of Labor’s Family and Medical Leave Insurance program. “These amendments are technical in nature,” Miller said, summarizing the changes.

Union and employer groups who testified were largely supportive of the state plan for executive-branch employees but sought clarity on separate amendments pending in other committees. Denise Gilmore of AFSCME Maryland Council 3 said the union supports ensuring employees are not required to exhaust accrued annual or personal leave before accessing the new paid leave. County and municipal representatives — including Michael Sanderson of the Maryland Association of Counties and Bill George of the Maryland Municipal League — asked the committee to coordinate timing if the statewide program timeline changes, so local governments can align budgeting and private-insurance alternatives.

DBM officials emphasized the administration’s intent to implement benefits for state employees on the July 1, 2026 date already set in statute for the statewide program. Grady said the department negotiated terms with unions and is “particularly excited” about the program’s role in recruitment and retention. Committee discussion did not include a final committee vote on the bill during the hearing recorded in the transcript.

The hearing record shows DBM’s testimony and the proposed technical amendments, as well as statements from multiple labor and employer witnesses. The committee received favorable-with-amendment testimony from several union witnesses and technical questions from members about the relationship between this state-employee bill and separate bills that would change the statewide implementation timetable.