Maryland Gov. Wes Moore launches government efficiency initiative to make dent in $3 billion deficit

Sam Janesch, The Baltimore Sun on Jan 10, 2025

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BALTIMORE — Gov. Wes Moore will look to make a dent in the looming $3 billion state budget deficit through a new effort that aims to save $50 million by eliminating wasteful and inconsistent spending across government agencies.

Real estate owned by the state and technology contracts will be among the first areas investigated, the governor announced Friday — two days after he first stressed he prefers to make cuts and find cost savings over passing tax increases this year.

The massive hole in the 2026 fiscal year budget is the most significant challenge facing lawmakers in the annual three-month session that began Wednesday. Moore will present his spending proposal Jan. 15 and has said it will include $2 billion in cuts.

The “government modernization” initiative will help close the other roughly $1 billion portion of the gap. Moore has not yet said where the rest, totaling more than $900 million, will come from in his proposal that legally must reflect a balanced budget.

It may also cost the state money to conduct. A contract approved by Moore’s administration in October will pay Boston Consulting Group, one of the world’s largest such agencies, up to $15 million if the state saves an estimated $75 million through its work over two years. Under the contract, the state would only pay if the savings are found in the areas identified.

Beyond real estate and technology, initial work will include streamlining the state’s contracting process and fleet management. That will mean, for example, reviewing policies for maintaining vehicles and whether agencies are paying different prices for items like laptops or desktop computers, Moore’s office said.

Though the effort is still in its early stages, officials believe they can find at least $50 million in the fiscal year beginning July 1, and they will plan for that amount of savings when presenting the budget Wednesday. Lawmakers will then amend the budget and negotiate with the administration before a final plan is passed before the session ends in early April.

Leading the efficiency initiative will be Asma Mirza, a former official in President Joe Biden’s administration who Moore appointed as his “chief performance officer” in 2022. Mirza, who previously helped implement Biden’s $1.2 trillion infrastructure law, has so far worked to enact Moore’s vast policy goals — including the “state plan” he pitched last year to outline a wide range of priorities.

The announcement Friday featured an executive order expanding Mirza’s office to include a new “director of government modernization” and codify the Governor’s Office of Performance Improvement.

It also follows recent steps at the federal level by President-elect Donald Trump to kickstart a Department of Government Efficiency, or DOGE, that he’s said will look to trim federal spending. Elon Musk, the Tesla CEO and world’s richest man, is preparing to lead the effort alongside entrepreneur and former presidential candidate Vivek Ramaswamy. Moore has targeted a relatively smaller amount of savings, when compared to the rest of the state budget, with his efficiency plan while Musk has said he hopes to significantly slash federal costs, potentially up to $2 trillion.

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