Moore government efficiency effort saves $29M so far, officials say

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Cuts under Gov. Wes Moore’s effort to minimize waste and modernize the state government have saved $29 million in savings thus far for fiscal year 2026, administration officials reported Monday.

“Our Administration launched the Government Modernization Initiative because fiscal discipline and effective government go hand in hand,” Moore, a Democrat, said in a statement. “By using data, tracking performance, and modernizing how the state operates, we’re cutting waste, saving taxpayers money, and making Maryland more efficient for the people we serve.”

In January 2025, Moore launched the Government Modernization Initiative in an effort to have all state agencies compile data regarding where the state could find operational cost savings, streamline operations and reduce waste among Maryland’s government to help close the $3 billion-plus budget deficit the state was facing.

According to administration officials, the initiative has so far saved $29 million for the current fiscal year, including $20 million for the General Fund. The goal is to reach $50 million in annualized savings through permanent cost reductions rather than one-time cuts.

The current and projected savings have been built into the more than $800 million in cuts outlined in Moore’s $70.8 billion budget proposal for fiscal year 2027.

Maryland is currently facing a $1.4 billion budget deficit.

The administration has analyzed more than 350 data sets, conducted approximately 250 interviews and working sessions with state employees and worked with nearly 50 state agencies to target spending cuts, focusing on fleet management, IT services, shipping, telecommunication and procurement. The administration is also in the early stages of looking at real estate efficiencies. 

Among the savings is a drive to push state agencies away from off-contract spending, including the renegotiation or restructuring of contracts with seven key vendors that typically net $81 million in annual state spending. This accounted for about $18 million in year-over-year spending reductions.

The state also plans to sell under-utilized agency vehicles and pilot a shared vehicle pool program.

According to administration officials, hundreds of state vehicles were found to be driven less than 1,200 miles annually. The modernization initiative plans to shrink the fleet by 520 vehicles in fiscal year 2026, and has paused or cancelled 196 unnecessary vehicle purchases. To date, this has saved approximately $800,000 in fuel and vehicle maintenance, and $8 million in vehicle purchases.

In addition, the Government Modernization Initiative found and terminated about 1,000 unused or barely used cellphones across nine government agencies, and an audit discovered that between 35% and 50% of legacy copper phone lines can be terminated without disrupting agency operations. State employee laptops are now on track to be swapped for new models on five-year cycles rather than every three years. Administration officials say the cuts in cellphones will save about $500,000 annually, the discarded copper phone lines could net between $1.4 million and $1.7 million, and the new laptop schedule will save $3 million each year.