Managing Maryland’s State and Local Fiscal Recovery Funds

Project Overview

In early 2021, the Maryland Department of Budget and Management (DBM) contacted Hagerty Consulting to manage and administer the State’s $3.7 billion American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Funds (SLFRF) allocation. Facing urgent post-pandemic recovery needs, DBM sought a partner with the expertise to oversee SLFRF compliance, reporting, and strategic fund distribution statewide.

To meet this need, Hagerty delivered full lifecycle support—standing up a statewide SLFRF compliance framework, designing a desk review program for state agencies, distributing nearly $500 million to 145 local governments, and launching a robust technical assistance program to support those municipalities in managing their SLFRF awards.

Understanding the Mission

From the outset, Maryland needed a centralized oversight approach that balanced strict federal compliance with practical flexibility. Hagerty acted quickly, advising DBM and other state agencies on SLFRF eligibility to accelerate funding deployment during a period of severe revenue loss.

At the same time, we supported DBM in distributing $500 million in SLFRF to 145 non-entitlement units of local government (NEUs)—a federal requirement layered onto the State’s own compliance responsibilities. As a result, it was critical to quickly augment DBM’s internal capacity to manage multiple programs simultaneously.

The Hagerty Approach

To meet these challenges, Hagerty led the development of the State Agency Technical Assistance Program, which provides tailored support to help agencies navigate SLFRF rules and reporting requirements. Specifically, we created:

• On-demand training webinars
• Weekly office hours
• Step-by-step guidance documents and checklists
• Responsive, on-call advisory services

To centralize access, we launched the Compliance Hub—a one-stop online platform where agencies can request support, access policies, download templates, and upload documentation for monitoring. This tool enables DBM to track engagement, synthesize insights, and apply real-time data to improve performance statewide.

In parallel, we designed and executed a desk review process that evaluated 25 state agencies and over 120 programs across key sectors such as public health, broadband, workforce development, critical infrastructure, and the arts. To support this effort, Hagerty developed standard operating procedures, staffing models, reporting tools, and evaluation frameworks that ensure end-to-end grants management oversight.

Throughout this engagement, Hagerty has worked closely with DBM leadership and the Governor’s Office to translate program insights into strategic recommendations. These findings directly inform Maryland’s broader federal funding strategy. Additionally, we collaborate with DBM’s performance management team to ensure that key takeaways from the evaluation process are reflected in the State’s Recovery Plan Performance Reports submitted to the United States (US) Treasury each year.

Achieving Results

Since the start of our engagement, Hagerty has helped Maryland fully obligate its state and local fiscal recovery funding and continues to support state agencies in meeting federal expenditure deadlines. We have completed over 15 desk reviews, providing actionable recommendations to strengthen compliance. Our team also supports DBM in preparing the annual SLFRF Recovery Plan Performance Reports and responding to legislative reporting requests.

At the local level, Hagerty has engaged with Maryland’s 145 non-entitlement units (NEUs) more than 3,500 times through webinars, question-and-answer sessions, written guidance, and collaboration with the Maryland Municipal League.

In 2022, at DBM’s direction, we expanded this support beyond SLFRF to include guidance on additional federal funding opportunities—specifically those available through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). This expansion has allowed us to advise local governments on how to identify, apply for, and manage strategic grant resources effectively. We also track successful grant awards to provide DBM and state leadership with insight into municipal performance and progress in securing critical funding.