Annapolis, MD - Jan. 12, 2025 - Maryland Gov. Wes Moore launched a new government efficiency initiative by hiring a consulting group to save $50 million in taxpayer dollars.
The governor is spending money in an effort to save money. Moore signed an executive order Friday creating the Governor's Office of Performance Improvement to review data to find operational cost savings, streamline operations and eliminate redundancies, according to the governor's office.
The so-called government modernization initiative is intended to comb through all state agencies to identify wasteful and inconsistent spending, all in an effort to help close a portion of the almost $3 billion budget gap.
'Paying different prices': $1,000; $1,400; $600 for laptops
The governor convened a cabinet meeting Friday in Calvert County, at which he held up a state-issued laptop computer as an example of uneven spending in agencies.
"The details are in the nerdy. The savings are in the nerdy," Moore said. "In some departments, you are paying $1,000 for laptops. In some departments, you are paying $1,400 for laptops. In some departments, you are paying $600 for laptops. It is the same piece of machinery, but we are paying different prices."
The governor also used state fleet vehicles as another example of potential savings, to which he said hundreds of vehicles are only driven 1,200 miles a year while others are on the road fewer than 70 miles a month.
"How can we be more efficient? These are taxpayer dollars. They deserve better. They deserve greater accountability," Moore said.
State budget gap projected to be almost $3B
The hopeful $50 million in savings only puts a dent in the projected $3 billion budget deficit. The governor said he's also making $2 billion in cuts when he rolls out his state budget proposal on Wednesday, but he has not provided details. Legislators said they do not plan to rubber stamp the budget plan.
"Certainly, we are not going to take a budget and pass it. There's going to be a lot of conversations," said Senate President Bill Ferguson, D-District 46.
Balancing the budget shortfall will include cuts and possibly tapping into the state's Rainy Day Fund for specific purposes.
"For some specific purposes, (it) does make sense. We put those dollars there very intentionally. So, I would think we would see some use of the Rainy Day Fund," Ferguson said.
The state could also consider pausing programs that have not started, taking a deeper dive into the Blueprint for Maryland's Future education-funding proposals and adjusting the tax code.
State lawmakers are already looking at troubleshooting programs that contributed to the current shortfall.
One state agency contributing to the deficit is the Maryland Department of Health, has been underestimating costs and needs $350 million more per year to cover the costs of the Maryland Developmental Disabilities Administration.
"It was due to switching of the billing system between providers and a new billing system that initially overspent," Ferguson said.
MDH officials are being called to a Senate committee hearing next week to explain what went wrong.
Democrats and Republicans said they are looking for ways to grow the state's economy to blunt future deficits, including "ways to improve our business environment by cutting back on the excessive regulations and mandates that just don't work in the real world," said House Minority Leader Jason Buckel, R-District 1B.
State legislative leaders said they are at the beginning of a bigger conversation about the budget, and ultimately, they predict a spending plan will be balanced and reflect the governor's priorities and those in each chamber.