DEPARTMENT OF BUDGET & MANAGEMENT

FUNCTIONS

[photo, 45 Calvert St., Annapolis, Maryland] Major responsibilities of the Department of Budget and Management concern the budget of State government. They include budget development, supervision of budget execution, and revenue estimating. The Department ensures that current fiscal needs are met, strives for efficiency in State government, and, through evaluation and study of economic conditions, makes plans to meet future needs. Since 1996, the Department also has served as the central personnel agency of the State.

45 Calvert St., Annapolis, Maryland, October 2017. Photo by Diane F. Evartt.

OFFICE OF SECRETARY

45 Calvert St., Annapolis, MD 21401 - 1907

Appointed by the Governor with Senate advice and consent, the Secretary of Budget and Management supervises the Department. The Secretary also is the Governor's principal adviser in fiscal matters. In addition, the Secretary prepares the Department's portion of the agenda for Board of Public Works meetings (Code State Finance & Procurement Article, secs. 3-201 through 3-206).

The Secretary of Budget and Management is a member of the Governor's Executive Council; the Governor's Artificial Intelligence Subcabinet; the Children's Cabinet; the Governor's Subcabinet on Climate; the Governor's Subcabinet on Infrastructure; the Maryland Subcabinet for Public-Private Partnerships; and the Smart Growth Subcabinet; and is Vice-Chair of the Governor's Warrior to Worker Council, and Chair of the Maryland Efficient Grant Application Council.

As a member, the Secretary serves on the Asbestos Oversight Committee; the Bay Restoration Fund Advisory Committee; the Behavioral Health Advisory Council; the Capital Debt Affordability Committee; the Coast Smart Council; the Commission on Correctional Standards; the Maryland Cybersecurity Coordinating Council; the Commission on State Debt; the Interagency Disabilities Board; the Maryland Economic Council; the Maryland Efficient Grant Application Council; the Maryland Green Building Council; the Maryland Green Purchasing Committee; the Maryland Commission on Health Equity; the Historic St. Mary's City Fort to 400 Commission; the Interagency Council on Homelessness; the Statewide Interoperability Executive Committee; the Justice Reinvestment Oversight Board; the Council on Open Data; the Board of Trustees of the State Retirement and Pension System, and its Objective Criteria Committee; the Board of Revenue Estimates; the Interdepartmental Advisory Committee on Small, Minority, and Women Business Affairs; the Maryland Commission on Transportation Revenue and Infrastructure Needs; the Commission on Trauma-Informed Care; and the Maryland 250 Commission.

The Secretary oversees the Department's three main offices: Budget Analysis; Capital Budgeting; and Personnel Services and Benefits.

CHIEF OF STAFF

Under the Chief of Staff is Minority Business Enterprise and the Office of Government Relations.

DEPUTY SECRETARY

Under the Deputy Secretary are the Audit Compliance Unit, the Central Collection Unit, and the Division of Finance and Administration. The Deputy Secretary also oversees Statewide Equal Employment Opportunity Coordination.

[photo, 300 West Preston St., Baltimore, Maryland] CENTRAL COLLECTION UNIT
300 West Preston St., Room 500, Baltimore, MD 21201 - 2365

In 1973, the Central Collection Unit was created within the Department of Budget and Fiscal Planning (Chapter 355, Acts of 1973). In 1996, the Department reformed as the Department of Budget and Management.

300 West Preston St., Baltimore, Maryland, October 2019. Photo by Diane F. Evartt.

The Central Collection Unit collects delinquent accounts owed to the State. If collection attempts are unsuccessful, a State agency refers unsettled debts to the Unit.

Unsettled debts may include student loans, tuition, and fees; public assistance and food stamp overpayments; restitution for damage to State property; workmen's compensation premiums; reimbursement for institutional care; and payment for goods and services provided by the State. They do not include delinquent accounts collected by other agencies, such as taxes, child support, unemployment insurance contributions and overpayments, or court costs (Code State Finance & Procurement Article, secs. 3-301 through 3-305).

DIVISION OF FINANCE & ADMINISTRATION

45 Calvert St., Annapolis, MD 21401 - 1907

Origins of the Division of Finance and Administration trace to 1969, when the Division of Administration was created under the Department of Budget and Fiscal Planning. It continued as the Department reformed in 1996 as the Department of Budget and Management. By 2001, the Division of Administration was reorganized as the Division of Finance and Administration .

Internal fiscal operations of the Department, such as accounting, budget, payroll, and purchasing, are the responsibilities of the Division, which verifies budget requests and amendments, and maintains a master control file of State employee positions. The Division also prepares the Statewide Cost Allocation Plan that is filed with the federal government to obtain reimbursements for the cost of indirect State services that benefit federally funded programs (Code State Finance & Procurement Article, secs. 3-201 through 3-206, 7-101 through 7-121).

Annually, the Division prints the Maryland State Budget (known as the State Budget Book) as proposed by the Governor to the General Assembly. Moreover, the Division annually compiles and each June issues the Fiscal Digest, containing the State's approved operating budget.

Under the Division are four units: Budget and Financial Management; Procurement and Contract Management; Records Management; and State Fleet and Travel Management.

BUDGET & FINANCIAL MANAGEMENT
Formerly, functions of Budget and Financial Management were assigned to the Division of Finance and Administration until Budget and Financial Management formed within the Division of Finance and Administration in April 2026.

Here, the Department's operating budget is formulated and executed. The unit also manages all departmental financial matters, including accounting, invoicing, and purchasing.

PROCUREMENT & CONTRACT MANAGEMENT
301 West Preston St., Room M10, Baltimore, MD 21201 - 2365

In 1937, Procurement and Contract Management originally began when the position of Medical Director was established. Functions of the position were organized as the Medical Services Division in 1995 under the Department of Personnel. In 1996, the Medical Services Division moved to the Department of Budget and Management. It was renamed Contract Administration by 2023. Formerly under the Office of Personnel Services and Benefits, the unit was renamed Procurement and Contract Management and transferred to the Division of Finance and Administration in March 2026.

Procurement and Contract Management is responsible for contract solicitations and administers the Department's personnel-related contracts.

RECORDS MANAGEMENT
Since October 1, 2017, the Department of Budget and Management has had a program for the continual, economical and efficient management of its records. The Department's Records Officer develops and oversees the program, and serves as liaison to the Records Management Division of the Department of General Services, and to the State Archives (Chapter 539, Acts of 2017; Code State Government Article, secs. 10-608 through 10-611).

OFFICE OF BUDGET ANALYSIS

45 Calvert St., Annapolis, MD 21401 - 1907

[photo, 45 Calvert St., Annapolis, Maryland] In 1996, the Office of Budget Analysis originated when the Fiscal Planning Division and the Budget Analysis Division merged to form the Office of Budget. The Office reorganized under its current name in July 1996.

The Office of Budget Analysis helps the Secretary of Budget and Management draft an annual State operating budget for the Governor's consideration. To prepare the budget, the Office evaluates requests for appropriations from all operating units of State government. Professional analysts make recommendations regarding agency budgets after evaluating budget requests, agency goals, objectives, performance measures, historical data, and other information about State agencies under their review.

45 Calvert St., Annapolis, Maryland, July 2014. Photo by Diane F. Evartt.

Financial, revenue and fiscal matters that affect the budget of State government (including budget amendments and projected budgetary requirements) are reviewed by the Office. To detect any duplication or overlap in work, duties, or functions, the Office examines the administration, organization, staffing, duties, and responsibilities of State agencies.

To ensure economical and efficient use of State funds, personnel, equipment (including State-owned motor vehicles), and other resources, the Office reviews laws, policies, and regulations. The Office also studies economic conditions, trends, and indicators, and analyzes their impact on Maryland; prepares forecasts of revenues and expenditures, State debt, and aid to local governments; and conducts fiscal research (Code State Finance & Procurement Article, secs. 3-201 through 3-503, 7-101 through 7-404).

OFFICE OF CAPITAL BUDGETING

301 West Preston St., Room 1209, Baltimore, MD 21201 - 2365

The Office of Capital Budgeting started within the Department of State Planning. In 1989, responsibilities for capital budgeting transferred to the Division of Capital Programs in the Department of Budget and Fiscal Planning (Chapter 540, Acts of 1989). Renamed the Division of Capital Budgeting in 1990, the Division became the Division of Capital Budget within the Department of Budget and Management, and placed under the Office of Budget in 1996. Later that year, the Division reorganized as the Office of Capital Budget and, in 1997, under its present name.

The Governor's Annual Capital Budget is prepared by the Office of Capital Budgeting. The Capital Budget includes State-owned construction projects and numerous grant and loan programs. For all capital projects, the Office inspects sites, holds hearings, and prepares testimony for the General Assembly. The Office also develops the Five-Year Capital Improvements Program.

For State-owned construction projects, the Office reviews facility programs and must approve them before design can begin. Department of Transportation projects, however, are not reviewed by the Office.

To State agencies, the Office provides technical assistance in preparing master plans, and studies the feasibility and need for certain State facilities. The Office also coordinates the purchase of all capital equipment for State agencies (Code State Finance & Procurement Article, secs. 3-601 through 3-611).

In July 2018, the Office organized into two teams: Education, and State Services.

OFFICE OF PERSONNEL SERVICES & BENEFITS

301 West Preston St., Room 609, Baltimore, MD 21201 - 2365

[photo, 301 West Preston St., Baltimore, Maryland] In 1996, the Office of Personnel Services and Benefits was created as the Office of Human Resources when functions of the former Department of Personnel transferred to the Department of Budget and Management. The Office was renamed the Office of Personnel Services and Benefits on June 1, 1998.

301 West Preston St., Baltimore, Maryland, June 2004. Photo by Diane F. Evartt.

State personnel policies, health care benefit programs for State employees and retirees, and flexible spending accounts for State employees are administered by the Office. Moreover, the Office is responsible for salary administration and classification, recruitment and examination, and employee relations. Further, it provides centralized support to agencies for the Statewide Personnel System.

Under the Office are six main divisions: Classification and Salary; Employee Benefits; Employee Relations; Personnel Services; Recruitment and Examination; and Shared Services. The Office also oversees the Legislative Affairs and Special Projects Unit.

LEGISLATIVE AFFAIRS & SPECIAL PROJECTS UNIT
Created in 2022, the Legislative Affairs and Special Projects Unit formed under the Office of Personnel Services and Benefits.

The Legislative Affairs and Special Projects Unit monitors all legislation potentially affecting State employees, conducts legislative analysis, and drafts fiscal notes. The Unit also manages process improvement efforts within the Office of Personnel Services and Benefits, and leads projects that impact statewide personnel management policy. It supports the Department and Office through project management, data analysis, change management, and strategic communication.

CLASSIFICATION & SALARY DIVISION

301 West Preston St., Room 603, Baltimore, MD 21201 - 2365

The Classification and Salary Division began in 1947 as the Classification Division within the Department of State Employment and Registration. In 1953, it reorganized as the Classification and Compensation Division. In 1970, it was made part of the Department of Personnel. By 1977, the Division was renamed the Salary Administration and Position Classification Division. By 1981, it divided into two units: the Salary and Benefits Division, and the Position Classification Division. In 1985, it reformed as the Salary Administration and Position Classification Division, and in 1996, moved to the Department of Budget and Management under the Office of Human Resources (now Personnel Services and Benefits). The Division received its present name in November 2007.

The Division determines the classification for all State employee positions under the jurisdiction of the Secretary of Budget and Management. The Division analyzes individual positions and systematically maintains the classification plan. The Division also maintains the State Salary Plan. In addition, the Division recommends emergency salary actions and develops salary and benefits data and costs for pay recommendations (Code State Personnel & Pensions Article, secs. 6-101 through 6-404).

EMPLOYEE BENEFITS DIVISION

301 West Preston St., Room 510, Baltimore, MD 21201 - 2395

Functions of the Employee Benefits Division were administered first by the Fiscal Management Division of the Department of Personnel. In 1990, they were assumed by that department's Employee Benefits Division. In 1994, the State Employee and Retiree Health and Welfare Benefits Program transferred from the Department of Personnel to the Department of Budget and Fiscal Planning (Chapter 107, Acts of 1994), which reformed as the Department of Budget and Management in 1996. Formerly under the Deputy Secretary, the Division was placed under the Office of Human Resources (now Personnel Services and Benefits) in 1996.

The Division provides health benefits coverage for State employees, retirees, and their dependents to protect them from catastrophic financial loss from health care expenses.

Employee Benefits supervises Fiscal Services.

EMPLOYEE & LABOR RELATIONS DIVISION

301 West Preston St., Room 608, Baltimore, MD 21201 - 2395

The Employee and Labor Relations Division was created in 1969 as the Employee Assistance Program and assigned to the Department of Personnel in 1970. In accordance with the Executive Order on Fair Employment Practice, the Program reorganized in June 1995 as the Employee Services Division. The Division transferred to the Department of Budget and Management in 1996 as the Employee Relations Division and received its present name in 2013 in recognition of its involvement in collective bargaining and labor relations.

Under the Office of Personnel Services and Benefits, the Division addresses all grievances and disciplinary appeals State filed at the final step by employees in the State Personnel Management System. The Division conducts a settlement conference and assists the parties in resolving the conflict. Any appeals which the Division is unable to settle are referred to the Office of Administrative Hearings.

On employee and labor relations issues, the Division advises and trains supervisors, managers, and human resource professionals in State Personnel Management System agencies. It also processes management referrals of employees to the Employee Assistance Program for counseling or drug or alcohol treatment, and addresses issues that arise under the State's 218 Agreement with the federal government as the State's Social Security Administrator.

The Division oversees Employee and Labor Relations, and State Social Security Administration.

PERSONNEL SERVICES DIVISION

Within the Department of Budget and Management, the Personnel Services Division formed under the Office of Personnel Services and Benefits in 1999 as the Management and Labor Services Division. It became the Management and Personnel Services Division in 2002. In July 2002, functions of the former Personnel Consulting Division were assigned to the Management and Personnel Services Division which was restructured as the Personnel Services Division in November 2012.

The Statewide Personnel System is managed by the Division. A cloud-based application hosted and run by a third-party service provider, the System is used by State agencies to record personnel transactions, including appointments, promotions, and certain salary adjustments. It also is used to record and maintain time sheets and leave transactions and records.

The System launched in three stages. The first concerned with human resources transactions, such as new employee hires and employee terminations, started in November 2014. The second began operating in May 2016, and handled timekeeping and the calculation of gross payroll, including tracking employee leave balances. The third, which tracks and calculates employee benefits, began to run in January 2019. Separate from the System, several State agencies, such as the Department of Transportation and the University System of Maryland, continue to maintain their own personnel and payroll systems.

In addition, the Division helps State agencies implement and interpret memorandums of understanding negotiated for their employees through the collective bargaining. So that State agencies may participate in the State Telework Program, the Division also develops policy and arranges training. Further, the Division develops and revises personnel regulations, prepares and oversees the budget for the Office of Personnel Services and Benefits, and maintains the State Personnel Policy Manual.

All legislation potentially affecting State employees is monitored by the Division. Also, the Division drafts legislation pertaining to personnel matters and provides fiscal and policy analysis, and testimony to legislative committees.

The Division helps small State agencies implement personnel reform by analyzing their classified and unclassified positions, organizations, work methods, programs, and operations. The Division also assists State agencies in using other programs, such as the Transit Plus Program (access to public transportation through use of State Employee Identification Program); Retirees to Work; college-level internships; and Career Connections (mentoring for high school students). Moreover, the Division aids in the development and installation of the Personnel Benefits Information System (PBIS).

RECRUITMENT & EXAMINATION DIVISION

301 West Preston St., Suite 601, Baltimore, MD 21201 - 2365
[photo, 301 West Preston St., Baltimore, Maryland] Duties of the Recruitment and Examination Division date to 1920 when the Merit System first was established for employees of State government. The Division became part of the Department of State Employment and Registration in 1922. By 1947, the Examination Division formed. It joined the Department of Personnel in 1970, and was renamed the Recruitment and Examination Division by 1977. From the Department of Personnel, it moved in 1996 to the Department of Budget and Management where it was placed under the Office of Human Resources (now Personnel Services and Benefits).

301 West Preston St., Baltimore, Maryland, March 2004. Photo by Diane F. Evartt.

The Division recruits, tests, and certifies candidates as eligible for employment in classified positions within State government. Information about Maryland State employment opportunities and applications may be obtained by calling the Division. Personnel specialists also are available for employment counseling at Division offices (Code State Personnel & Pensions Article, secs. 4-201 through 4-307).

Job openings or vacancies in State government classified positions are advertised by the Recruitment and Examination Division on the Internet (https://jobapscloud.com/md/) and in newspapers and bulletins sent to State agencies. They also are listed with the One-Stop Career Centers System of the Division of Workforce Development and Adult Learning of the Maryland Department of Labor.

The Division oversees four units: Employment of People with Disabilities; Training and Internship; Veterans' Employment; and Websites and Social Media.

SHARED SERVICES DIVISION

The Shared Services Division formed in November 2012.

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