Maryland Gov. Wes Moore’s administration is offering state workers a lump sum of $20,000, plus $300 for each year they’ve worked, as an incentive to resign.

Departing workers would also continue on their state health insurance plan for six months and be paid for unused leave.

The offer, part of a budget-tightening effort, opened to state workers Thursday, and they have until Aug. 4 to apply. Only workers with at least two years with the state are eligible.

The buyout offer — officially called the “voluntary separation program” — is one element of Moore’s plan to trim personnel costs by over $120 million to meet requirements of the state budget.

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The state will also institute a hiring freeze, though certain positions and departments will be exempt. The administration also will eliminate vacant positions from the books.

Moore, a Democrat who is in Idaho attending a conference dubbed “billionaire summer camp,” issued an executive order outlining the terms of the buyout program Thursday. Further details were posted online.

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Moore administration officials have not said how many employees they hope will take the buyout or how much money could be saved.

Officials with AFSCME Maryland Council 3, the largest union for state workers, issued a statement expressing concerns that the cost-cutting measures could harm the ability of workers to do their jobs serving Marylanders.

“Our union continues to stand by our position that any solutions to help our state navigate these tough and volatile times must not come at the cost of providing quality state services,” the statement read.

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The union wants the state to prioritize different options, such as addressing inefficiencies and hiring state workers for certain jobs that are currently contracted to private companies.

The personnel actions represent a change of course for the governor, who came into office in 2023 pledging to fill thousands of vacant positions in state government. The state’s financial outlook has worsened since, and the governor had to work with lawmakers to close a $3.3 billion gap between planned expenses and revenues for the current budget year.