DEPARTMENT OF BUDGET & MANAGEMENT

FUNCTIONS

45 Calvert St., Annapolis, Maryland, December 2003. 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 chairs the Board of Trustees of the Maryland Teachers and State Employees Supplemental Retirement Plans, is vice-chair of the Governor's Warrior to Worker Council, and is a member of the Governor's Executive Council; the Base Realignment and Closure Subcabinet; the Children's Cabinet; and the Smart Growth Subcabinet. The Secretary also serves on the Asbestos Oversight Committee; the Bay Restoration Fund Advisory Committee; the Capital Debt Affordability Committee; the Climate Change Commission; the Commission on Correctional Standards; the Commission on State Debt; the Interagency Disabilities Board; the Maryland State Drug and Alcohol Abuse Council; the Maryland Green Building Council; the Maryland Green Purchasing Committee; the Maryland Health Care Reform Coordinating Council; the Board of Directors of the Maryland Health Insurance Plan; the Statewide Interoperability Executive Committee; the Coordinating Council for Juvenile Services Educational Programs; the Maryland Integrated Map Executive Committee; the Interdepartmental Advisory Committee for Minority Affairs; the Procurement Advisory Council; the Task Force to Study the Procurement of Health, Education, and Social Services by State Agencies; the Joint Legislative and Executive Commission on Oversight of Public-Private Partnerships; the Board of Trustees of the State Retirement and Pension System; the Board of Revenue Estimates; the Maryland School-Based Health Center Policy Advisory Council; and the War of 1812 Bicentennial Commission.

The Secretary oversees the Division of Finance and Administration and the Division of Procurement Policy and Administration as well as the Department's three main offices: Budget Analysis; Capital Budgeting; and Personnel Services and Benefits.

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

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. Annually, the Division prints the Maryland State Budget (known as the State Budget Book) as proposed by the Governor to the General Assembly, and compiles the Fiscal Digest. 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 1957, Art. 19, secs. 43-46; State Finance & Procurement Article, secs. 3-201 through 3-206, 7-101 through 7-121).

In 1973, the Central Collection Unit was created (Chapter 355, Acts of 1973). The Unit is responsible for the collection of delinquent accounts owed to the State. If collection attempts are unsuccessful, a State agency refers unsettled debts to the Unit. Such debts may be 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).

300 West Preston St., Baltimore, Maryland, November 2003. Photo by Diane F. Evartt.

DIVISION OF PROCUREMENT POLICY & ADMINISTRATION

The Division of Procurement Policy and Administration began in 1976 as the Division of Management Analysis and Audits, reformed as the Division of Policy Analysis in 1996, and was reorganized under its present name in January 2005.

For State agencies, the Division reviews and approves procurements for services, and procures such services for State use. Further, the Division oversees statewide compliance on certain audits. To ensure effective and efficient statewide fleet and travel operations, the Division also provides policy and procedural direction and contract management services.

Under the Division are units for Audit Compliance, Minority Business Enterprise, Procurement, and State Fleet and Travel Management (Code State Finance & Procurement Article, secs. 3-501 through 3-503, 11-101(1)).

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 organized under its current name in July 1996.

The Office 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.

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 of work, duties, or functions, the Office examines the administration, organization, staffing, duties, and responsibilities of State agencies.

The Office reviews laws, policies, and regulations to ensure economical and efficient use of State funds, personnel, equipment (including State-owned motor vehicles), and other resources. In addition, the Office 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).

Five teams carry out the responsibilities of the Office, which 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 has published a guidebook and developed a training progam. Currently, the Committee advises the Department on implementation of the initiative.

TEAM A (PUBLIC SAFETY, ENVIRONMENT & TRANSPORTATION)
Team A provides budget analysis and assistance for the Governor's Office; Judiciary; Office of Attorney General; Secretary of State; State Treasurer; Board of Public Works; Department of the Environment; Department of General Services; Department of Natural Resources; Department of Planning; Department of Public Safety and Correctional Services; Department of State Police; Department of Transportation; Department of Veterans Affairs; Maryland African American Museum Corporation; State Archives; Maryland Environmental Service; Maryland Institute for Emergency Medical Services Systems; Commission on Human Relations; Military Department; Office of State Prosecutor; and Office of Public Defender.

TEAM B (HEALTH-RELATED AGENCIES, POLICY & PERFORMANCE BUDGETING)
Team B gives budget analysis and assistance to the Department of Aging; Department of Disabilities; Department of Health and Mental Hygiene; Office of the Deaf and Hard of Hearing; State Board of Elections; Maryland Health Benefit Exchange; Maryland Insurance Administration; and University of Maryland Medical System Corporation.

TEAM C (EDUCATION, LOCAL AID, & HUMAN SERVICES)
Team C provides budget analysis and assistance for the Department of Agriculture; State Department of Education; Department of Human Resources; Department of Labor, Licensing, and Regulation; Department of Planning; State Board of Contract Appeals; Maryland Energy Administration; Governor's Office for Children; and Maryland School for the Deaf.

TEAM D (BUDGET PREPARATION & FINANCIAL AGENCIES)
Team D researches fiscal issues, and makes economic forecasts for State revenues, expenditures, debt, and aid to local governments. Its fiscal planners oversee disparity grants to counties, security interest filing fees, and the State Reserve Fund Account, which includes the Rainy Day Fund, Dedicated Purpose Fund, Economic Development Opportunities Fund, Catastrophic Event Fund, and the Joseph Fund.

Team D provides budget analysis and assistance to the Office of the Comptroller; Department of Budget and Management; Department of Information Technology; Department of Juvenile Services; Office of Administrative Hearings; State Department of Assessments and Taxation; Maryland Automobile Insurance Fund; Canal Place Preservation and Development Authority; Injured Workers' Insurance Fund; State Lottery Agency; Property Tax Assessment Appeals Boards; State Retirement and Pension Systems; Maryland Tax Court; Maryland Teachers and State Employees Supplemental Retirement Plans; Maryland Technology Development Corporation; Workers' Compensation Commission; Registers of Wills; and Major Information Technology Development Fund.

TEAM E (HIGHER EDUCATION & ECONOMIC DEVELOPMENT)
Team E provides budget analysis and assistance to the Department of Agriculture; Department of Business and Economic Development; Department of Housing and Community Development; Maryland Food Center Authority; Historic St. Mary's City Commission; Office of People's Counsel; Public Broadcasting Commission; Interagency Committee for Public School Construction; Public Service Commission; Baltimore City Community College; Maryland Higher Education Commission; the Higher Education Labor Relations Board; Morgan State University; St. Mary's College of Maryland; Maryland Stadium Authority; University System of Maryland; and support for State-operated institutions of higher education.

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 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. The Capital Budget includes State-owned construction projects and numerous grant and loan programs. 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. For all capital projects, the Office inspects sites, holds hearings, and prepares testimony for the General Assembly.

The Office provides technical assistance to State agencies 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).

OFFICE OF PERSONNEL SERVICES & BENEFITS

The Office of Personnel Services and Benefits was created as the Office of Human Resources in 1996 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.

The Office administers State personnel policies and health benefit programs. It is responsible for six main divisions: Classification and Salary; Employee Benefits; Employee Relations; Management and Personnel Services; Medical Services; and Recruitment and Examination.

CLASSIFICATION & SALARY DIVISION

The Classification and Salary Division began in 1947 as the Classification Division. In 1953, it reorganized as the Classification and Compensation Division. 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). 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, and Operations, and is aided by the State Employees' Health Insurance Advisory Council.

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.

MANAGEMENT & PERSONNEL SERVICES DIVISION

So that State agencies may participate in the State Telework Program, the Division develops policy and arranges training.

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 is responsible for maintaining the State Personnel Policy Manual, developing and revising personnel regulations, and preparing and overseeing the budget for the Office of Personnel Services and Benefits.

Since July 2002, functions of the former Personnel Consulting Division have been assigned to the Management and Personnel Services Division. 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).

MEDICAL SERVICES DIVISION

The position of Medical Director was established in 1937. Functions of the office organized as the Medical Services Division in 1995. Formerly under the Department of Personnel, the Medical Services Division moved to the Department of Budget and Management in 1996.

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.

RECRUITMENT & EXAMINATION DIVISION

Duties of the Recruitment and Examination Division date to 1920 when the Merit System first was established for employees of State government. By 1947, the Examination Division formed. It 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).

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).

Vacancies in classified positions are advertised on the Internet (www.dbm.maryland.gov), 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, Department of Labor, Licensing, and Regulation.

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