DEPARTMENT OF BUDGET & MANAGEMENT

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).

45 Calvert St., Annapolis, Maryland, December 2003. Photo by Diane F. Evartt.

DIVISION OF FINANCE & ADMINISTRATION

The Division of Finance and Administration oversees internal fiscal operations of the Department, 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 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 an initial collection attempt is 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 POLICY ANALYSIS

The Division of Policy Analysis began in 1976 as the Division of Management Analysis and Audits and reformed under its present name in 1996. The Division conducts management studies, performance audits, and program analyses of State agencies and programs. It oversees the State Fleet Management Office, the State Travel Management Office, and the Procurement Unit. In addition, the Division provides technical assistance to State agencies in management, planning, program evaluation, and systems development (Code State Finance & Procurement Article, secs. 3-501 through 3-503, 7-101 through 7-121).

GOVERNOR'S INTERAGENCY STEERING COMMITTEE FOR MANAGING FOR RESULTS
In 1996, the Governor's 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 oversees implementation of the initiative and provides guidance to State agencies on managing for results.

OFFICE OF BUDGET ANALYSIS

In 1996, the Office of Budget Analysis originated from two divisions: Fiscal Planning and Budget Analysis. The divisions 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 help prepare the draft, the Office evaluates requests for appropriations from all operating units of State government. Professional analysts evaluate budget requests, historical data, and other information about State agencies under their review and make recommendations regarding agency budgets.

Financial, revenue and fiscal matters that affect the current 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.

Laws and regulations that ensure economical and efficient use of State funds, personnel, equipment (including State-owned motor vehicles), and other resources are enforced by the Office. 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.

TEAM A (CRIMINAL JUSTICE)
Team A provides budget analysis and assistance to the Office of Attorney General, the Office of the State Treasurer; the Judiciary; Department of Juvenile Justice; Department of Public Safety and Correctional Services; Department of State Police; Department of Veterans Affairs; State Archives; Maryland Automobile Insurance Fund; Maryland State Board of Contract Appeals; Maryland Food Center Authority; State Lottery Agency; Military Department; Office of Public Defender; State Retirement and Pension System; Maryland Stadium Authority; and Maryland Teachers and State Employees Supplemental Retirement Plans.

TEAM B (EDUCATION)
Team B oversees the budgets of the General Assembly; the Executive Department; Board of Public Works; Interagency Committee on School Construction; Secretary of State; Executive Boards, Commissions, and Offices; State Department of Education; Baltimore City Community College; Office for Children, Youth, and Families; Maryland School for the Deaf; State Board of Elections; Maryland Institute for Emergency Medical Services Systems; State Higher Education Labor Relations Board; Historic St. Mary's City Commission; Morgan State University; People's Counsel; Public Service Commission; St. Mary's College of Maryland; University of Maryland Medical System Corporation; University System of Maryland; and Support for State-Operated Institutions of Higher Education.

TEAM C (AGRICULTURE, ENVIRONMENT, NATURAL RESOURCES, & TRANSPORTATION)
Team C provides budget analysis and assistance to the Office of Comptroller of Maryland, and the Department of Agriculture; Department of Business and Economic Development; Department of the Environment; Department of Labor, Licensing, and Regulation; Department of Natural Resources; Department of Transportation; Office of Administrative Hearings; Canal Place Preservation and Development Authority; Maryland Energy Administration; Maryland Environmental Service; Governor's Workforce Investment Board; and Registers of Wills.

TEAM D (HEALTH & HUMAN SERVICES)
Team D oversees the budgets of the Department of Aging; Department of Health and Mental Hygiene; Department of Human Resources; Office for the Deaf and Hard of Hearing; Office for Individuals with Disabilities; Commission on Human Relations; Injured Workers' Insurance Fund; Maryland Insurance Administration; Maryland Public Broadcasting Commission; Subsequent Injury Fund Board; Uninsured Employers' Fund Board; and State Workers' Compensation Commission.

TEAM E (FISCAL PLANNING & MANAGEMENT)
Staffed by the Executive Director, two Deputy Directors, and the Assistant Director, Team E provides overall direction and management to the Office. Team E also 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 E provides budget analysis and assistance to the General Assembly; Department of Budget and Management; Department of General Services; Department of Housing and Community Development; Department of Planning; Maryland African American Museum Corporation; State Department of Assessments and Taxation; Maryland Higher Education Commission; Maryland Higher Education Investment Board; Property Tax Assessment Appeals Boards; State Prosecutor; and Maryland Tax Court.

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 INFORMATION TECHNOLOGY

Functions of the Office of Information Technology began in 1993 when certain responsibilities for information technology were assigned to the Department of Budget and Fiscal Planning (Chapter 120, Acts of 1993). The Office of Information Technology formed within the Department of Budget and Management in 1996 (Code State Finance & Procurement Article, secs. 3-401 through 3-405).

45 Calvert St., Annapolis, Maryland, February 2001. Photo by Diane F. Evartt.

In 1997, the Department was authorized to establish a telecommunication and computer network in Maryland (Chapter 722, Acts of 1997). The network is accessible through direct connection and through local intra-LATA (local access and transport areas) telecommunications to State and local governments and public and private educational institutions in Maryland (Code State Finance & Procurement Article, sec. 3-705).

The Office of Information Technology plans the coordinated use of information technology to further State objectives. It also manages the major Information Technology Development Project Fund.

Appointed by the Governor, the Chief of Information Technology heads the Office (Code State Finance & Procurement Article, sec. 3-410).

Under the Office, work is organized into eight components: Application Systems Management; Contracts and Project Management; Enterprise Information Services; Investment Management; Network Maryland; Security and Architecture; Telecommunications; and Web Systems. The Office is assisted by the State Information Technology Board.

STATE INFORMATION TECHNOLOGY BOARD
The Governor created the State Information Technology Board in 1993 (Executive Order 01.01.1993.06). The following year it was established by statute (Chapter 493, Acts of 1994). The Board advises the Chief of Information Technology on the Master Plan of Information Technology and such other matters as the Chief may request. In 1999, the Board was further mandated to study and make recommendations concerning Internet-based acts, including commerce, transgressions against user privacy, crime, and uses in the health care industry (Chapter 656, Acts of 1999).

The Board consists of thirty-four members. Fifteen members are appointed to three-year terms by the Governor with Senate advice and consent. The Senate President and House Speaker each appoint two members and the Chief Judge of the Court of Appeals appoints one. Fourteen serve ex officio. The Governor names the chair (Code State Finance & Procurement Article, secs. 3-406 through 3-411).

APPLICATION SYSTEMS MANAGEMENT

Formed in June 1999, Application Systems Management oversees Financial Management Information Systems; and Human Resources Management.

FINANCIAL MANAGEMENT INFORMATION SYSTEMS
Financial Management Information Systems (FMIS) organized in 1991 to create a new, high-technology, administrative management system for State government. In 1996, it was placed under the Office of Information Technology.

This division is responsible for computer applications that manage the system of State government purchasing, accounting, payroll, personnel, and budgeting.

CONTRACTS & PROJECT MANAGEMENT

ENTERPRISE INFORMATION SERVICES

Enterprise Information Services oversees: Customer Services; Network Services; Security Services; Technical Services; and Voice Services.

VOICE SERVICES
Voice Services originated as Voice and Customer Services, became Technical Support Services in 1997, and became Voice and Technical Services in 2002. As Voice Services, it transferred from Telecommunications to Enterprise Information Services in November 2004.

Between State agencies and vendors, Voice Services coordinates the installation, management, and operation of telecommunication equipment and systems for voice applications. The office provides technical advice and consultation services to State and local governments.

INVESTMENT MANAGEMENT

Information Technology Investment Management started as Information Technology in 1993. At that time, first the Governor and then the General Assembly established the position of Chief of Information Technology to develop policies, procedures, and standards for statewide information technology (Executive Order 01.01.1993.06; Chapter 120, Acts of 1993). Within the Office of Information Technology, the division reformed as Planning, Standards, and Technical Assistance in 1996 and as Planning, Policy, and Standards in 1999. It became Information Technology Investment Management in July 2002, and adopted its present name in November 2004.

To assure Maryland's preeminence in information technology, Investment Management prepares and updates a statewide Master Plan of Information Technology.

SECURITY & ARCHITECTURE

TELECOMMUNICATIONS

Telecommunications formed as the Telecommunications Division in the Department of General Services. The Division became the Office of Telecommunications Management in 1986, when the General Assembly expanded Department responsibilities for telecommunications management to provide guidelines and central direction to all State agencies in the procurement, use, and maintenance of communication systems. The Office reorganized as Telecommunications in 1990. It joined the Department of Budget and Management in 1996 under the Office of Information Technology, and was placed under Department Information Technology in 2002.

Voice, video, wireless, data and other electronic communication services, including MARCOM (an integrated digital State communications network), are coordinated by Telecommunications (Code State Finance & Procurement Article, secs. 4-901 through 4-904). The State of Maryland Telephone Directory also is produced by this office for State agencies.

Under Telecommunications are three units: Enabling Technologies and Administration; Telecommunications Access of Maryland; and Wireless Services.

TELECOMMUNICATIONS ACCESS OF MARYLAND
300 West Preston St.
Baltimore, MD 21201 - 2308

Telecommunications Access of Maryland started in 1988 as the Telecommunications for Disabled Individuals Program within the Department of Human Resources. In 1990, the federal Americans with Disabilities Act required all states to have a telecommunications relay system operating by July 1993. In 1991, Maryland's Program was renamed and transferred to the Department of General Services (Chapter 598, Acts of 1991). In 1996, it moved to the Department of Budget and Management.

The Maryland Relay Service was initiated by Telecommunications Access of Maryland in December 1991 to convey dual-party telephone messages for persons with disabilities. The Service enables a deaf person to communicate via a telecommunications device with an intermediary party who then verbally relays the message to a third party. For State residents who are deaf or have impaired hearing, speech, vision, or mobility, the Service makes telephone use possible 24 hours per day, seven days per week.

GOVERNOR'S ADVISORY BOARD FOR TELECOMMUNICATIONS RELAY
The Governor's Advisory Board for Telecommunications Relay formed in 1987 as the Telecommunications for Disabled Individuals Board within the Department of Human Resources (Chapter 525, Acts of 1987). Reorganized under its present name, the Board transferred to the Department of General Services in 1991 (Chapter 598, Acts of 1991). The Board joined the Department of Budget and Management in 1996. In consultation with the Board, the Department of Budget and Management maintains the Maryland Relay Service.

The Board's twelve members are appointed by the Governor who names the chair. Members serve three-year terms (Code State Finance & Procurement Article, secs. 3-801 through 3-807).

WIRELESS SERVICES
301 West Preston St., Room 1304
Baltimore, MD 21201 - 2365

Wireless Services began within the Department of General Services as Radio Services, became Wireless Communication Services in 1994, and transferred to the Department of Budget and Management in 1996. Renamed Wireless Support Services in 1997, it adopted its present name in 2002. Wireless Services promotes compatibility between radio systems; evaluates and promotes the sharing of resources, where appropriate; and procures wireless systems, including radio, microwave, cellular phone and paging systems. The office also advises State agencies on planning, acquisition, and operation of radio systems; and provides radio frequency coordination assistance to State and local government.

WEB SYSTEMS

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 the Employee Development and Training Institute, and seven main divisions: Employee Benefits; Employee Development and Training Institute; Employee Relations; Management and Personnel Services; Medical Services; Recruitment and Examination; and Salary Administration and Position Classification. The Office is aided by the State Labor Relations Board.

STATE LABOR RELATIONS BOARD
The State Labor Relations Board was created within the Department of Budget and Management in 1999 (Chapter 298, Acts of 1999). The Board resolves disputes arising from the interpretation of contracts negotiated between the State and the elected exclusive representatives of State employees.

The Board consists of five members. Four are appointed to six-year terms by the Governor with Senate advice and consent. One serves ex officio (Code State Personnel & Pensions Article, secs. 3-101 through 3-601).

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.

STATE EMPLOYEES' HEALTH INSURANCE ADVISORY COUNCIL
In 1985, the State Employees' Health Insurance Advisory Council was created (Chapter 217, Acts of 1985). The Council advises the Secretary of Budget and Management on implementation, maintenance, negotiations, and administration of the State Employees' Health Insurance Program. The Council also advises the Secretary on the procedure for soliciting bids from health care providers for a contract under the Program; the types of providers contracted to provide health care benefits; and the amounts of those benefits.

The Council consists of eighteen members. Seventeen are appointed to two-year terms by the Governor. The Secretary of Budget and Management serves ex officio. The Governor names the chair (Code State Personnel & Pensions Article, secs. 2-505 through 2-506).

EMPLOYEE DEVELOPMENT & TRAINING INSTITUTE

The Employee Development and Training Institute began in 1995 as the Employee Development Division in the Department of Personnel. As the Employee Development and Training Division, it transferred to the Department of Budget and Management in 1996. Shortly thereafter, the Division reorganized as the Employee Development and Training Institute.

The Institute is responsible for the Employee Development Center, Club Maryland, the Incentive and Innovative Idea Awards Program,the Service Awards Program,and the Quality Improvement Program. The Institute also coordinates the training and employee awards program and the State Quality Initiative (Code State Personnel & Pensions Article, secs. 10-101 through 10-404).

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 Maryland Job Service, Division of Workforce Development, Department of Labor, Licensing, and Regulation.

SALARY ADMINISTRATION & POSITION CLASSIFICATION DIVISION

The Salary Administration and Position Classification 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 was divided into two units: the Salary and Benefits Division, and the Position Classification Division. Since 1985, it has borne its present name. In 1996, it moved to the Department of Budget and Management under the Office of Human Resources (now Personnel Services and Benefits).

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).

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