Maryland Offers $20,000 Buyouts to State Employees to Reduce Payroll Costs
Maryland's government introduces a voluntary separation program offering $20,000 plus benefits to eligible state employees as part of efforts to cut $121 million from personnel expenses.
Thousands of Maryland state employees have been offered a $20,000 buyout as part of a voluntary separation program aimed at reducing the state's payroll costs by $121 million. The program, announced by Gov. Wes Moore (D), also includes an additional $300 for each year of service, six months of paid state health benefits, and compensation for unused leave and compensatory time. The initiative, detailed on the state Department of Budget and Management's website, targets full-time employees in the executive branch, with applications due by August 4.
There is no specific target for the number of employees the state hopes will accept the buyout, according to officials. The program is part of broader measures to achieve financial savings, including a previously announced hiring freeze. With nearly 52,000 positions in the state's personnel systems, about 4,800 were vacant as of May, and 13,500 are exempt from the buyout offer. Eligibility criteria exclude employees with less than two years of service, and not all applications will be approved.
Critics, such as Senate Minority Leader Sen. Stephen S. Hershey Jr. (R-Upper Shore), have labeled the buyout a "short-term fix for a long-term problem" attributed to the current administration and legislature. The program's success in meeting its financial goals remains to be seen as the deadline for applications approaches.