DEPARTMENT OF BUDGET & MANAGEMENT

FUNCTIONS

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

OFFICE OF SECRETARY

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 serves as Vice-Chair of the Governor's Warrior to Worker Council, and is a member of the Governor's Executive Council; the Children's Cabinet; the Smart Growth Subcabinet; and the Maryland Subcabinet for Public-Private Partnerships. The Secretary also 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 Green Building Council; the Maryland Green Purchasing Committee; the Task Force to Study Cooperative Purchasing for Health Insurance; the Interagency Council on Homelessness; the Commission on Innovation and Excellence in Education; the Statewide Interoperability Executive Committee; the Justice Reinvestment Oversight Board; the Coordinating Council for Juvenile Services Educational Programs; the Objective Criteria Committtee, State Retirement and Pension System; the Council on Open Data; the Procurement Improvement Council; the Council for the Procurement of Health, Educational and Social Services; the Commission to Modernize State Procurement; the Board of Trustees of the State Retirement and Pension System; the Board of Revenue Estimates; and the Interdepartmental Advisory Committee on Small, Minority, and Women Business Affairs.

The Secretary oversees the Department's three main offices: Budget Analysis; Capital Budgeting; and Personnel Services and Benefits. Directly under the Secretary also are the Division of Finance and Administration, and the Division of Procurement Policy and Administration.

STATEWIDE EQUAL EMPLOYMENT OPPORTUNITY
Under the direction of the Deputy Secretary, the Statewide Equal Employment Opportunity Coordinator administers Maryland's Equal Employment laws and policies. The Coordinator assists and educates State agency personnel responsible for fair practices, equal employment opportunities, and the Americans with Disabilities Act. Further, the Coordinator investigates charges of discrimination, unfair employment practices, and whistleblower complaints; and reviews appeals of decisions in equal employment opportunity cases filed against State agencies (Code State Personnel and Pensions Article, secs. 5-201 through 5-215).

In August 2007, the Code of Fair Employment Practices was updated and reissued by the Governor (Executive Order 01.01.2007.09).

In 1973, the Central Collection Unit was created (Chapter 355, Acts of 1973).

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

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

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

The Division of Finance and Administration oversees internal fiscal operations of the Department, such as accounting, budget, payroll, and purchasing. It verifies budget requests and amendments, and maintains a master control file of State employee positions. It 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.

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

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.

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).

The Office also oversees the Interagency Steering Committee for Managing for Results.

INTERAGENCY STEERING COMMITTEE FOR MANAGING FOR RESULTS
In 1996, the Interagency Steering Committee for Managing for Results began its work of developing Maryland's Managing for Results initiative. Managing for Results is a strategic planning process in which an agency identifies the needs and expectations of those it serves, sets goals and priorities for meeting those needs and expectations, and measures its progress towards meeting those established goals. The Committee advises the Department on implementation of the initiative.

The Committee has published a guidebook and developed a training progam.

EDUCATION & CHILDREN'S SERVICES
Education and Children's Services provides budget analysis and assistance for the State Department of Education; Department of Human Resources; Department of Juvenile Services; and Governor's Office for Children. Further, it has responsibility for People's Counsel; Public Service Commission; State Retirement and Pension System; Subsequent Injury Fund Board; Uninsured Employers' Fund Board; and State Workers' Compensation Commission.

HEALTH
Health began as the Health and Human Services Team and reformed under its present name in 2016.

Health gives budget analysis and assistance to the Department of Aging; Department of Disabilities; Maryland Department of Health; Office of Administrative Hearings; Office of the Deaf and Hard of Hearing; Maryland Health Benefit Exchange; Maryland Insurance Administration; and Morgan State University.

HUMAN SERVICES, TRANSPORTATION, & ECONOMIC DEVELOPMENT
Originally, Human Services, Transportation and Economic Development started as the Higher Education, Transportation and Development Team, and reorganized by its present name in 2016.

Human Services, Transportation and Economic Development provides budget analysis and assistance to the Board of Public Works; Department of Labor, Licensing, and Regulation; Baltimore City Community College; Canal Place Preservation and Development Authority; College Savings Plans of Maryland Board; Maryland School for the Deaf; Maryland Higher Education Commission; Historic St. Mary's City Commission; St. Mary's College of Maryland; Maryland Technology Development Corporation; University System of Maryland; and support for State-operated institutions of higher education.

PUBLIC SAFETY & ENVIRONMENT
Public Safety and Environment provides budget analysis and assistance for the Office of Attorney General; Secretary of State; Department of Agriculture; Department of the Environment; Department of Natural Resources; Department of Planning; Department of Public Safety and Correctional Services; Department of State Police; Department of Veterans Affairs; Maryland State Board of Contract Appeals; Maryland Environmental Service; Maryland Institute for Emergency Medical Services Systems; Military Department; Office of State Prosecutor; and Office of Public Defender.

OFFICE OF CAPITAL BUDGETING

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

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.

Under the Office are seven main divisions: Classification and Salary; Employee Benefits; Employee Relations; Medical Services; Personnel Services; Recruitment and Examination; and Shared Services.

CLASSIFICATION & SALARY DIVISION

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

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

Employee Benefits supervises Fiscal Services.

EMPLOYEE RELATIONS DIVISION

The Employee 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. Under its present name, it transferred to the Department of Budget and Management in 1996.

Under the Office of Personnel Services and Benefits, the Division administers personnel transactions and the Employee Leave Bank.

The Division monitors, investigates, and mediates all grievances and complaints of State employees. When a State employee files a grievance that cannot be resolved within the employee's agency, the Division provides mediation services and conducts a settlement conference. Any grievances which the Division is unable to settle proceed to the Office of Administrative Hearings.

MEDICAL SERVICES DIVISION

The position of Medical Director was established in 1937. Functions of the office 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.

The Division determines if State employees or applicants for State employment are employable in terms of their health and provides medical review of the State Drug-Testing Program. To State agencies, the Division provides advice on issues of employee occupational health. It also oversees specialized medical evaluations, pre-employment physicals, workability examinations, drug and alcohol testing, and assessments of work-related injuries and illnesses.

PERSONNEL SERVICES DIVISION

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., Baltimore, Maryland, March 2004. Photo by Diane F. Evartt.

Vacancies in classified positions are advertised on the Internet (www.jobaps.com/md/), in the newspapers, and in 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, Department of Labor, Licensing, and Regulation.

SHARED SERVICES DIVISION

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