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What Governor Hogan’s Cut Means To Middle Class Families

What do Governor Hogan’s cuts mean
to our hard-working, middle class families?

Questions and Answers

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Across-the-board cuts to all state agencies & public universities/collegesaxe hand

Governor Hogan’s budget calls for cuts all state agencies and public universities and colleges across-the-board by 2% ($118 million), but that is a blanket and haphazard way to balance our budget.

Slashing every service to Maryland taxpayers by 2% is like trying to trim your fingernails with an axe.

Democrats and Republicans in the Legislature should work together to find smarter ways to balance our budget.

Unprecedented 2% pay takeaway now & No 2016 raiseback pocket

Governor Hogan says that he wants to cut the 2% COLA that our hard-working, middle class families are already living on and also cut our merit raise (step increase) for 2016.

The 2% raise we negotiated, voted for and that our families already got in January would go away in July. That means
our families would live on the 2% COLA between January and June but then Governor Hogan would reach into our back pockets and take away the pay our families are already living on, when the new Fiscal Year begins July 1, 2015. And there would be no merit raise (step increase) in 2016. So the Governor would take away pay we already got and there would be no possibility of a raise next year.

Voluntary Separation Program for someRetirement or work life

Governor Hogan is offering VSP (with supervisor sign off) to some but not all state employees. The program is expected to cut 500 positions to save $30 million.

But the governor is not extending his offer to workers at 24-7 institutions or anyone performing an indispensable job.

His current plan: $15K lump sum, plus $200 for every year of service and three months health insurance.

All employees should be eligle for the VSP.

Tell our legislators: We want Democrats & Republicans to work together to find smarter ways to balance our state budget. 
Toll Free: 877-547-5021

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Audit and Cut Private Contracts 
1% saves $180+ million

  • $18,038,527,166.00 (billion) was paid to private vendors (private corporations, individuals, private and out of state universities etc.) in FY 2014. (*1) 
  • 48.75% of the $37 billion operating budget in FY 2014 went to private vendors. These private vendors are not audited to the same level as state agencies and universities. (*2) All state agencies and universities are routinely audited to identify areas of savings or greater efficiencies.
  • Contracts to private entities can be rebid before the end of a current contract. The Maryland Governor has large powers to save in this large area spending (one of three positions on the Board of Public Works).
  • A 1% savings would save taxpayers $180,385,272.00 annually. 

Trim Top-Heavy Growth of Management & Supervisors.
1% Saves $9+ million

Type of employee SPMS DOT
Full Time Employees
Included in Bargaining
26,567 3,429
Full Time Employees
Excluded from Bargaining
14,811 2,417
Managerial 2,520 (6%) 833 (14%)
Supervisory 4,918 (12%) 1,196 (20%)
TOTAL 41,378 5,846 (100%)

Source: DBM Annual Personnel Report FY 2014

rich boss

  • Managers (Unit M) & Supervisors (Unit S) currently comprise 7,439 (18%) of State Personnel Management System (SPMS) employees and 2,029 (34%) of Department of Transportation (DOT) employees. 
  • From ’02-’14 Units M & S in SPMS and DOT grew from 7,894 to 9,468 (1,574 or 17%) while overall positions shrank by 6,159.
  • The average salary of a state employee in an AFSCME bargaining unit is $40,864.50. The average salary for Unit S and M employees is $81,442 annually (survey of 900). Average amount for benefits (health, pension, paid leave etc.) for all workers is $30,918(*3) annually. Based on a conservative average S & M salary of 70,000 the average manager/supervisors compensation would be $100,918.00.
  • A 1% cut in positions would save $9,554,916.24

[*1] Data extracted from MD State Stat Open Data Portal on 2-5-15. Available online at:  https://data.maryland.gov/Budget/FY14-Payments-Data/8xda-39tn  Any “vendors” that included Maryland State or Local governments or public institutions were removed.

[*2] http://ballotpedia.org/Maryland_state_budget

[*3] Data extracted from DBM Annual Personnel Report FY 2014 1/1/15 P.15 http://www.dbm.maryland.gov/employees/Documents/AnnualPersonnelReportFY14.pdf

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