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The Maryland Board of Public Works on Wednesday approved eliminating about 500 vacant state positions to help address the state's budget deficit, according to the board's meeting agenda for Wednesday. The cuts include 332 jobs vacated through a Voluntary Separation Program and about 170 other vacant positions. The job cuts are part of Maryland Gov. Wes Moore's plan to reduce personnel spending and close a projected shortfall in the state's general fund. According to the Department of Budget and Management, the reductions fulfill a requirement in the fiscal 2026 budget bill directing the agency to abolish vacant positions to save money. The Voluntary Separation Program, launched in July year under an executive order, offered employees a $20,000 lump-sum payment and six months of state-paid health benefits to leave state service. A total of 877 employees applied for the program, and 332 were approved, according to the Board of Public Works. Those separations took effect Sept. 30. The Moore administration says the move is expected to save about $121 million in general funds this fiscal year and is part of a broader effort to streamline state operations, which also includes a hiring freeze and reviews of agency staffing needs. Maryland's budget deficit In April, the Maryland Senate passed budget measures to address a deficit of more than $3 billion with tax increases and cuts throughout state government, as well as plans for spending adjustments that could be triggered by future federal cuts from the Trump administration. New taxes targeted high-income brackets as well as IT and data services, capital gains, cannabis sales, and sports betting revenue streams. Cuts affected nearly all state agencies, including a $150 million reduction to the Developmental Disabilities Administration. Moore called the state deficit the greatest fiscal crisis in the last 20 years and worse than the Great Depression. Gov. Moore in January said part of his plan to close the funding gap included focusing on government efficiency and bringing new streams of revenue to the state, including new businesses. Moore on Tuesday announced a new international investment partnership between Maryland's TEDCO, a state agency that funds startups, and partners from Taiwan, which could bring up to $50 million into Maryland's innovation economy. The governor's office said the deal is part of a broader effort to position Maryland as a global leader in industries like artificial intelligence, biotech, and deep tech.
