Attorney General's Office faces $11.5M budget cut to $66.1M for fiscal 2025

In a recent session of the Maryland General Assembly's PST Committee, significant discussions unfolded regarding the budget and operations of the Office of the Attorney General (OAG). The meeting, held on March 1, 2024, highlighted a notable decrease in the OAG's operating budget, which is set to drop by $11.5 million, or 14.8%, to $66.1 million for fiscal year 2025.

Jacob Polikov from the Department of Legislative Services presented the budget analysis, emphasizing the implications of this reduction. The budget cuts come despite the previous fiscal year’s allocation of $548,900 aimed at enhancing the OAG's Independent Investigations Division (IID), which gained prosecutorial authority in 2024. This authority allows the IID to investigate police-involved deaths and serious injuries, a significant expansion of its role since its establishment in 2021.

The budget discussion also revealed a contingent reduction of $700,000 in general funds, which is tied to the repeal of a mandate requiring the governor to allocate funds for the consumer protection division. This reduction, along with the absence of mandated funding for the Maryland Legal Services Corporation's access to counsel and evictions program, has raised concerns about the OAG's ability to fulfill its responsibilities effectively.

Polikov noted that the OAG is facing a high turnover rate, with 56.4 positions vacant, significantly exceeding the budgeted turnover rate of 7.49%. To address this, the Department of Legislative Services recommended increasing the turnover rate to 9.5%, which would reduce the budgeted amount by nearly $1 million.

The meeting also touched on the Medicaid Fraud Control Unit, which has seen a decline in recoveries for the second consecutive year, primarily due to the conclusion of several large opioid cases. The unit anticipates a steady recovery of approximately $2.5 million annually moving forward.

Another critical topic was the rollout of the Access to Counsel and Evictions (ACE) program, which aims to provide legal representation for tenants facing eviction. The program, established in 2021, is set to expand its services significantly, but it currently faces funding challenges. The Maryland Legal Services Corporation estimates that the program will require over $25 million for its rollout in fiscal 2025, far exceeding the mandated $14 million, which is not yet included in the governor's budget proposal.

As the session concluded, the committee members expressed the need for ongoing oversight, with recommendations for quarterly reports on both the ACE program and the overall budget adjustments for the OAG. The discussions underscored the challenges ahead for the Office of the Attorney General as it navigates budget constraints while striving to fulfill its critical role in Maryland's legal landscape.