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Debate over $63.8 million salary step expansion pits analysts against DBM and unions
Summary
DLS recommended deleting $63.8 million proposed for salary‑step expansions in FY27 amid tight finances; DBM Secretary Jake Weissman pushed back, citing pay equity and negotiated agreements, while multiple unions urged the committee to protect step increases to retain staff.
Analysts told the Appropriations Committee that the statewide personnel account includes proposals to expand salary steps and a 1.5% general pay increase, but DLS recommended deleting $63.8 million for the step expansion because of the state's fiscal condition.
Jacob Cash, the committee analyst, told members the governor's FY27 budget adds an additional 1.5% pay raise and a technical widening of salary steps to at least 2%, and that DLS recommends deleting the step‑expansion funding as a cost‑containment measure.
The recommendation drew a direct response from Jake Weissman, Secretary of the Department of Budget and Management. For the record, Secretary Weissman said DBM “respectfully disagrees” with deleting the step fix and described the step changes as a multiyear, equity‑focused effort negotiated in good faith with labor representatives: “This issue has emerged as a long‑standing issue of inequity … this 64 million is the first step of what will ultimately be a three‑year phase in,” he said.
Labor leaders urged the committee to honor negotiated agreements. Denise Gilmore, representing ASME Council 3, said cutting the negotiated steps would be counterproductive and pointed to rising overtime—“state employees worked 6.7 million hours of overtime … which cost the state nearly $350 million”—as evidence that underinvestment in staffing increases total costs.
Jerry Smith, president of the Maryland Professional Employees Council, called freezing steps again “patently unfair” given years without increments under prior administrations and urged the committee to approve the governor’s plan. Todd Reynolds of the American Federation of Teachers in Maryland also asked lawmakers to reject the DLS recommendation, arguing that negotiated tradeoffs included the step changes alongside other concessions.
Analysts and witnesses acknowledged the state's tight fiscal picture. Cash recommended deletion because of fiscal constraints; union leaders argued the step expansion is a necessary, phased remedy to pay inequities that drive turnover and contracting out. Secretary Weissman noted the administration will continue to seek areas for cost containment while honoring bargaining outcomes.
The hearing included questions from delegates about retention, the timing of negotiations and how the steps fit into broader workforce strategies. The committee did not take a vote at today's hearing; DLS recommendations and agency responses will inform floor deliberations and any budget amendments as the General Assembly considers the FY27 budget.
