Thousands Of State Employees Are Ineligible For MD Buyout Program As Officials Cut Costs

By FOX45
Posted on 07/15/25 | News Source: FOX45

Baltimore, MD - July 15, 2025  - As state workers begin applying for the Voluntary Separation Program, a cost-cutting measure implemented by Governor Wes Moore's Office, data shows thousands of employees won't be eligible for it.

To help balance the budget and deal with the Maryland's deficit, state officials are working to make $121 million dollars in personnel cuts, as required by the latest budget. To do that, Governor Wes Moore's Office has implemented a hiring freeze, has plans to eliminate vacant positions and has also started the Voluntary Separation Program. The VSP allows eligible state employees to leave their position with a lump sum of $20,000, $300 per year of service and six months of health insurance.

"I think it'll help get them there, but it may not get them all the way there, and that's one of the problems, too," said political expert John Dedie.

To be eligible for the buyout program, an employee must be employed in a full-time permanent position in the Executive Branch of the State, not in a classification or agency that has been designated as excluded from the VSP, and have at least twenty-four months of current, continuous State service.

However, employees from over 30 agencies, including several universities and colleges, the judiciary, and many others, won't be able to apply for the program. In addition, employees in a plethora of positions are also ineligible.

According to the Maryland Department of Budget and Management, the State Personnel Management System and MDOT together have roughly 47,000 employees when accounting for vacant positions.

"Of the roughly 47,000 employees, approximately 14,500 are in exempt classes, leaving about 32,500 eligible employees. However, some of the 32,500 will not be eligible because they have less than 2 years of service," a spokesperson said.

"I am at least happy to see you know they're not seeking voluntary buyouts or people to leave positions in corrections, public safety, mental health, we need, frankly, more people in those fields," said Delegate Jason Buckel, who represents Allegany County.

"But where we probably can afford to shed state workers is in a lot of the bureaucracy," he added.

Employees have until August 4th to apply for the program, so currently it is not clear how many individuals will take the offer. While it may be attractive to some, Del. Buckel says it might not be as appealing to others.

"There's certainly a lot of positions in a lot of regions where that $20,000 probably really isn't that attractive, and where people feel like they can't quickly transition into the private sector, into another job. And so I'm just not sure how it will play out. I'm not sure," he said.

"I hope that it that it works to achieve those types of savings. But we really do need to keep looking at right sizing, the scope and the cost of our state," Buckel added.

In a statement from AFSCME Maryland Council 3, a union representing state employees, a spokesperson said, "Our union continues to stand by our position that any solutions to help our state navigate these tough and volatile times must not come at the cost of providing quality state services. Across key agencies, our members continue to struggle with chronic understaffing, dangerous working conditions, and unsustainable workloads. We want to reiterate that responsible decision-making around both cost-saving and revenue-raising measures must prioritize preserving our state services and the jobs of the workers who make them happen. That includes eliminating costly contracts, in-sourcing services where needed, addressing other inefficiencies, and closing corporate tax loopholes to raise much-needed state revenues."