MARYLAND (WBFF) — Maryland’s state government is hemorrhaging taxpayer money, with recent audits uncovering more than $1.2 billion in questionable spending, improper payments and financial irregularities.
That figure, detailed across multiple state agencies, has ignited a debate in the state capital over a systemic inability to fix long-standing financial failures. As the same problems appear in audit report after audit report, lawmakers and taxpayer advocates are now demanding to know whether the state is capable of doing more than just identifying the problems.
The findings have been the subject of repeated reporting by Spotlight on Maryland and its partners at FOX45 News and The Baltimore Sun. Reports span the breadth of Maryland’s bureaucracy, from failures in unemployment insurance and Medicaid to questionable transportation expenses and state procurement.
“It’s a pattern of concern,” said state Del. Jesse Pippy, a Frederick County Republican. “Government’s role is as a fiduciary to the taxpayer. Taxpayers expect their government to live within its means. They certainly expect that somebody’s running the railroad and these audits are showing a pattern.”
Among the largest findings were roughly $760 million in unemployment insurance overpayments that auditors said the state failed to adequately pursue, nearly $360 million in questioned transportation expenses charged to federally funded projects, a failed state procurement system that cost taxpayers more than $32 million and millions of dollars in potentially improper Medicaid payments.
Senate Minority Whip Justin Ready, who serves on the Joint Audit and Evaluation Committee, said audits routinely uncover issues in state government. What concerns him, he said, is the growing size of the findings.
“What we’ve seen the last three years has been a surge in massive audit findings that involve a lot of money, a lot of oversight issues,” said Ready, a Republican who represents Carroll and Frederick counties.
Ready said lawmakers from both parties attempted to address one of the most common complaints about state audits: repeat findings.
This year, the Joint Audit Committee worked in a bipartisan fashion to create the Audit and Finance Compliance Unit within the Department of Budget and Management. The unit is tasked with helping agencies address audit findings and improve compliance before problems reappear in future audits.
“For many, many years, Annapolis had a very good auditing team. They identify the problems, but there wasn’t a dedicated unit to go solve the problems,” Ready said. “This is an effort to correct audit findings.”
Still, some lawmakers argue that more oversight is needed.
Pippy pointed to Republican-backed legislation that would have created a statewide inspector general to investigate waste, fraud and abuse across state government.
“We put in legislation this year for a statewide inspector general. That bill was killed,” Pippy said. “At a time where you keep finding these repeat audits, why would you not want a statewide inspector general?”
Spotlight asked multiple Democrats, including those on the Joint Audit Committee, to be interviewed for this story. Spotlight was either told no or did not receive an answer. Only one Democratic lawmaker agreed to an interview: Sen. Arthur Ellis, representing Charles County, but he did not show up for a scheduled virtual interview.
Taxpayer advocates echoed concerns about recurring findings.
David Williams, president of the Taxpayers Protection Alliance, said many of the issues identified by auditors are not new.
“It’s frustrating because these findings show a repeat of behavior where this is happening over and over again through multiple years,” Williams said. “And that means that these problems aren’t being fixed.”
Williams said the state cannot afford to ignore the findings while facing ongoing budget pressures.
“The state can’t afford to let more than $1 billion go to waste, fraud and abuse,” he said. “It is imperative that when an audit comes out that there’s follow-through. Just having an audit is not enough.”
The Moore administration disputes characterizations that the audits collectively represent more than $1 billion in fraud.
In a statement to Spotlight on Maryland, administration officials said the figure “is grossly exaggerated, conflates findings, and lacks critical context of corrective actions taken by agencies to resolve identified issues.” Officials also said many findings involved procedural, documentation or oversight concerns rather than confirmed fraud.
The administration noted that internal reviews have already resolved or clarified portions of several audit findings. For example, state officials said a review of Medicaid payments questioned by auditors found that 95% of certain payments examined were proper.
Officials also emphasized that roughly 90% of the unemployment overpayments cited by auditors were incurred under former Gov. Larry Hogan.
Maryland has recovered approximately $1 billion in fraudulent and overpaid claims, according to Moore’s office.
The administration said it has already addressed more than 30 repeat audit findings inherited from previous administrations and has directed agencies to strengthen financial controls and audit compliance procedures.
According to the administration, Chief of Staff Lester Davis has met with the 23 agencies audited over the past three years to review compliance efforts and identify areas for improvement. Agencies have also expanded oversight procedures, hired additional financial leadership personnel and implemented new compliance measures.
The administration further points to legislation signed this year that creates the Audit and Finance Compliance Unit, as mentioned by Ready, and notes that the fiscal 2027 budget includes $31 million dedicated to improving financial accountability.
Williams said those efforts are welcome, but taxpayers ultimately will judge success based on future audit results.
“Audits are only as good as the solutions,” Williams said. “The state legislature and the governor need to fix the problems identified by the audits.”
Spotlight on Maryland is a collaboration between FOX45 News, WJLA in Washington, D.C., and The Baltimore Sun. Have a story tip? Email spotlightonmaryland@sbgtv.com or call 410-467-4670. Investigative reporter Tessa Bentulan can be reached at tbentulan@sbgtv.com.
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