Governor’s Office budget request increases; administration will fund federal affairs contract despite DLS recommendation

The Public Safety and Administration Subcommittee heard an analysis of the Governor’s Office fiscal 2026 allowance and proposals on Feb. 17, 2025, where the Department of Legislative Services recommended reducing two new positions and eliminating a requested deficiency for a federal government affairs contract. Scott Benson, an analyst with the Department of Legislative Services, told the subcommittee the fiscal 2026 allowance for the Governor’s Office “increases by 1,600,000 or 7% to 24,100,000,” and that two proposed deficiencies produced a net general fund increase of $403,712.

Why it matters: The disputed items affect the office’s ability to staff a new government modernization initiative and to maintain a federally focused contract intended to protect and pursue federal funding and partnerships — matters the governor’s office and lawmakers said have statewide implications for infrastructure and federal investments.

Benson said personnel comprises the majority of the governor’s office budget (83%), that the allowance includes funding for three new positions, and that the office received Bloomberg Philanthropies grants to seed an innovation team. “Bloomberg Philanthropies is providing $2,320,000 in fiscal 20 26 for the innovation team,” Benson said, and the innovation team’s initial project is to expand access to capital through a Maryland Community Investment Venture Fund.

Fagan Harris, chief of staff to the governor, opposed the DLS recommendation to eliminate the two positions and described them as necessary to implement a new government modernization initiative. Harris said the administration expects six current vacancies to be filled by March 2025 and that the additional staff would “play a key role in streamlining government operations, eliminating redundancies, modernizing outdated processes” and produce what the office projects as a “$40,000,000 net positive impact to the state's general fund.”

On the federal government affairs contract, DLS recommended eliminating a $480,000 deficiency for a contract to support the governor’s federal relations work. Harris said the governor’s office “concur[s] with the DLS recommendation to reduce the Federal Government Affairs contract” in recognition of fiscal constraints but then added that the office intends to fund the contract internally by using vacancy savings. “We are going to absolutely move forward on the contract,” Harris told the subcommittee, adding the office may seek additional resources next year if needed.

Subcommittee members pressed for context about the governor’s international outreach — Delegate McComas asked about a meeting between the governor and King Abdullah II of Jordan — and Harris characterized those meetings as economic-development and higher-education partnerships. Vice Chair Ivey emphasized the statewide stakes of federal engagement, naming Aberdeen Proving Ground and Fort Meade as examples.

DLS recommended several budget adjustments, including eliminating two new positions and the deficiency appropriation for the federal government affairs contract; the governor’s office accepted the DLS recommendation on cutting the contract appropriation but stated it will nevertheless proceed with the contract using existing vacancy savings and disagreed with deleting the two new positions. There was no formal vote on these recommendations at the hearing.

Context and next steps: The Governor’s Office allowance includes Bloomberg-funded staffing for an innovation team and additional personnel costs tied to salary increases. The subcommittee did not vote at the hearing; any appropriation changes would be decided later in the budget process. The transcript shows DLS’s analysis and the governor’s office responses on the record.