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Office of the Attorney General







Operating Budget Data

($ in Thousands)



FY 01 FY 02 FY 03 % Change

Actual Working Allowance Change Prior Year



General Fund $16,482 $17,598 $18,343 $745 4.2%

Special Fund 613 420 434 14 3.4%

Federal Fund 1,199 1,521 1,523 2 0.1%

Reimbursable Fund 2,123 2,067 2,569 502 24.3%

Total Funds $20,417 $21,606 $22,869 $1,263 5.8%



Ä Personnel costs account for almost $1 million of the fiscal 2003 increase.





Personnel Data

FY 01 FY 02 FY 03

Actual Working Allowance Change



Regular Positions 254.50 260.50 262.50 2.00

Contractual FTEs 1.50 2.00 0.00 (2.00)

Total Personnel 256.00 262.50 262.50 0.00



Vacancy Data: Regular Positions



Budgeted Turnover: FY 03 17.59 6.70%

Positions Vacant as of 12/31/01 27.60 10.51%



Ä Two new positions for the Electronic Transaction Education, Advocacy, and Mediation Unit and

two positions for representation of sheriffs are included in the fiscal 2003 allowance.









Note: Numbers may not sum to total due to rounding.

For further information contact: Elizabeth Forkin Phone: (410) 946-5530

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Analysis in Brief

Issues

Significant Statewide Litigation: The Office of the Attorney General (OAG) represents the State’s interest

as both a plaintiff and a defendant in litigation which involves substantial sums of money. The outcome of

statewide litigation can have a large impact on State revenues. Based upon this, last year the budget

committees requested that the OAG submit an annual report outlining all significant statewide litigation. The

submitted report, while informative, did not include information on the issues included in each case or the

legal status of each case. The Department of Legislative Services (DLS) recommends that future

reports contain a description of the issues and the legal status of each case. DLS recommends that

committee narrative be adopted to request the inclusion of this information in the annual report.







Recommended Actions



Funds Positions

1. Delete four new positions. $ 163,511 4.0

2. Delete one long-term vacant PIN. 1.0

3. Reduce growth in garage rent by 10%. 10,360

4. Reduce growth in general fund legal services from 25.9% to 10% 17,421

over fiscal 2002 working appropriation.

5. Adopt committee narrative requesting the inclusion of certain

information in the annual report on significant statewide litigation.

Total Reductions $ 191,292 5.0









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Updates



House Bill 22 Would Create a New Position within the OAG: Enactment of House Bill 22 would create

the position of Pornography Complaints Ombudsman within the OAG.





Governor’s Salary Commission Recommends Increase for Attorney General: The January 2002 Report

of the 2001 Governor’s Salary Commission recommends an increase in the salaries of four constitutional

officers, including the Attorney General. The increase would take effect in fiscal 2003.









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Office of the Attorney General



Operating Budget Analysis

Program Description



The Attorney General acts as legal counsel to the Governor, General Assembly, Judiciary, and all

departments, boards, and commissions (except the Human Relations Commission, Public Service

Commission, and State Ethics Commission). The Office of the Attorney General (OAG) represents the State

in all matters of interest to the State, including civil litigation and criminal appeals in all State and federal

courts. The office also reviews legislation passed by the General Assembly prior to consideration by the

Governor. The office is supported by 11 divisions: Legal Counsel and Advice, Securities, Consumer

Protection, Antitrust, Medicaid Fraud Control, Civil Litigation, Criminal Appeals, Criminal Investigations,

Educational Affairs, Correctional Litigation, and Contract Litigation.



The office also provides assistant attorneys general and staff attorneys to State agencies. The positions

are in the agency budgets, rather than in the budget of the Attorney General. Salaries, grades, steps,

promotions, and employee evaluations are determined by the Attorney General. There are 294 assistant

attorneys general and 21 staff attorneys in State agencies. A breakdown of the positions by agency appears

in Appendix 4.





Cost Containment



The OAG is subject to both the Governor’s hiring freeze and the 1.5% cut in certain operating expenses.

However, five PINS have been approved for exemption by the Governor’s staff. Originally, the OAG was

to revert $106,000 for fiscal 2002 to the general fund as part of its contribution to the Governor’s cost

containment measures. However, the administration gave cost containment relief to a number of agencies,

including the OAG. This relief cut the OAG’s contribution to the general fund for fiscal 2002 to $71,000.





Governor’s Proposed Budget



Exhibit 1 shows the increase in the fiscal 2003 allowance. The fiscal 2003 allowance is $22.9 million;

it increases by $1.3 million or 5.8%. General funds in fiscal 2003 are $18.3 million, comprising 80.2% of the

fiscal 2003 allowance. Special funds comprise 1.9% of the fiscal 2003 allowance, federal funds comprise

6.7% of the allowance, and reimbursable funds account for 11.2%.









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Exhibit 1





Governor’s Proposed Budget

Office of the Attorney General

($ in Thousands)

General Special Federal Reimb.

How Much It Grows: Fund Fund Fund Fund Total

2002 Working Appropriation $17,598 $420 $1,521 $2,067 $21,606

2003 Governor’s Allowance 18,343 434 1523 2569 22,869

Amount Change $745 $14 $2 $502 $1,263

Percent Change 4.2% 3.4% 0.1% 24.3% 5.8%

Where It Goes:

Personnel Expenses

New positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $164

Abolished/transferred positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (105)

Fiscal 2003 increments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Annualize fiscal 2002 general salary increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

Net fiscal 2003 cost containment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29)

Employee and retiree health insurance cost increase . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Retirement contribution cost increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267

Other Changes

Increase in legal services, including experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Increase in expenditures for library books and supplies and office supplies . . . . . . . . . 84

Increase in garage rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Software for Electronic Transaction Education, Advocacy, and Mediation Unit . . . . . . 28

Decrease in communications expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15)

Miscellaneous adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51)

Total $1,263

Note: Numbers may not sum to total due to rounding.









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Personnel



New Positions



Personnel expenses in the fiscal 2003 allowance increase by $987,960 over the fiscal 2002 working

appropriation. This increase accounts for nearly all of the increase in the fiscal 2003 allowance. New fiscal

2003 positions are shown in Exhibit 2. These new positions account for only $163,511 of the total personnel

increase



Exhibit 2





New Positions in Fiscal 2003

Office of the Attorney General



Number of

Number of Similar

Positions Fringe Positions

Position Requested Salary Benefits Turnover Total Costs Vacant





Administrator II 3 $119,298 $36,912 ($39,072) $117,138 1

Administrator V 1 48,405 13,436 (15,468) 46,373 0







Total cost of new

positions 4 $167,703 $50,348 ($54,540) $163,511



Source: Office of the Attorney General, fiscal 2003 allowance







Two of these positions stem from the passage of Chapter 440, Acts of 2001 which created an Electronic

Transaction Education, Advocacy, and Mediation Unit in the OAG. The other two positions are to be used

in conjunction with representing sheriffs. Although the Department of Budget and Management (DBM) has

allocated these positions as administrative, the OAG reports that they requested assistant attorney general

positions. Thus, either the positions would be underfunded or would not serve the intended purpose. As

discussed later in this analysis, various vacant positions currently exist at the OAG that could be used, once

the hiring freeze has been lifted, to staff this unit. Further, due to fiscal constraints, the Spending

Affordability Committee has recommended that there should be no new positions added to the fiscal 2003

budget with very little exception. Therefore, the Department of Legislative Services (DLS) recommends

that all four new positions be deleted from the 2003 budget.







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Vacant Positions



As of December 31, 2001, the OAG had 27.60 vacancies. Thirteen of those positions have been vacant

for 12 months or longer. DLS recommends that a 27-month vacant Administrative Officer III position (PIN

001736) be deleted from the OAG. In coming to this conclusions, DLS took into account the number of

months the position has been vacant and the number of vacant positions available in that classification should

the position be eliminated. Further, in light of the Governor’s hiring freeze, DLS recommends that only the

PIN, and not the associated funding, be deleted from the fiscal 2003 budget. Of course, there will be future

savings since this position will not be funded for fiscal 2004 and beyond.





Special Funds



Special funds increase by $14,255 or nearly 3.4% over the fiscal 2002 working appropriation. Part of

this increase results from Chapter 522, Acts of 2000 which requires registration for the State’s homebuilders.

Registration fees accrue to a special fund, which supports enforcement of the legislation. The OAG also

receives funds through the Health Spa Registration Fund to support enforcement of legislation governing the

operation of gyms, spas, and athletic clubs. These funds are generated by health club registration fees.





Federal Funds



The allowance includes only a $1,796 increase over the fiscal 2002 working appropriation. The agency’s

Medicaid Fraud Control Unit is supported by a grant from the U.S. Department of Health and Human

Services. Increases in this grant award are driven by increases in attorney salaries resulting from the grade

increase occurring in fiscal 2002.





Reimbursable Funds



The agency receives reimbursable funds from the Health Care Regulatory Fund to enforce health care

insurance laws and regulations. The OAG’s Contract Litigation Unit also receives reimbursable funds from

the Department of General Services (DGS), the University System of Maryland, and the Maryland

Department of Transportation for its representation of these agencies in contract dispute litigation.

Reimbursable funds increase $502,167, or 24.3% over the fiscal 2002 working appropriation, due primarily

to expert witness fees involved in DGS contract litigation.









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Performance Analysis: Managing for Results



As a directly elected constitutional officer, the Attorney General’s participation in Managing for Results

(MFR) is voluntary. Because MFR is considered a valuable tool for evaluating whether an agency is properly

utilizing State resources, during their 1999 legislative session the budget committees requested that the OAG

submit an MFR. No MFR was submitted, but the OAG noted its intent to seek assistance from MFR

professionals at the University of Baltimore’s Schaefer Center for Public Policy. The OAG did seek that

assistance but submitted an unsatisfactory MFR with its fiscal 2002 budget request. In its analysis, DLS

found only the mission and vision statements satisfactory. DLS also noted that the quality of the OAG’s

performance has a fiscal impact on the State because it is involved in litigation which involves substantial

sums of money, representing the interests of the State as both a plaintiff and defendant. Thus, as per DLS’s

recommendation, the 2002 Joint Chairmen’s Report included committee narrative requesting that the OAG

submit a complete MFR that included goals, objectives, and strategies linked to its fiscal 2003 budget request

by September 1, 2001. The OAG submitted a satisfactory MFR with its budget request for fiscal 2003.



Based upon the information provided in Exhibit 4, complaints have steadily risen in the Consumer

Protection Division. A corresponding increase in arbitrations and hearings is thus understandable.

Investigations and enforcement actions in the Antitrust Division have remained steady, as have measures in

the Civil Litigation, Criminal Appeals, and Correctional Litigation Divisions. Criminal Investigations have

fluctuated. After a brief increase from 1999 to 2001, projections in measures for the Securities Division seem

to have leveled off.









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Exhibit 4





Program Measurement Data

Office of the Attorney General

Fiscal 1999 through 2003



Ann. Ann.

Actual Actual Est. Actual Est. Est. Chg. Chg.

1999 2000 2001 2001 2002 2003 99-01 01-03



Consumer Protection Division

Complaints 11,177 12,700 13,000 13,076 13,000 13,500 8.2% 1.6%

Arbitrations 88 100 110 146 120 125 28.8% -7.5%

Hearings 26 18 25 38 25 25 20.9% -18.9%





Antitrust Division

Investigations 571 569 565 629 600 575 5.0% -4.4%

Enforcement actions 19 18 21 17 18 18 -5.4% 2.9%



Civil Litigation

Civil litigation cases 472 477 477 476 476 476 0.4% 0.0%



Criminal Appeals

Criminal appeals 1,027 1,149 1,200 1,061 1,150 1,150 1.6% 4.1%



Criminal Investigation

Investigations conducted 463 279 300 394 500 500 -7.8% 12.7%

Cases litigated 111 90 101 198 226 226 33.6% 6.8%



Securities Division

Investment advisor

registration (firms) 1,122 1,370 1,425 1,408 1,405 1,405 12.0% -0.1%

Investor advisor

registration (individuals) 4,971 5,285 5,400 6,394 6,400 6,400 13.4% 0.0%

Securities registrations 16,452 19,016 19,100 20,073 20,200 20,300 10.5% 0.6%



Correctional Litigation

Correctional litigation 546 546 547 540 547 547 -0.6% 0.6%





Source: Office of the Attorney General



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Issues

1. Significant Statewide Litigation



The OAG represents the State’s interest as both a plaintiff and a defendant in litigation which involves

substantial sums of money. The outcome of this litigation can have a significant fiscal impact on the State.

The 2001 Joint Chairmen’s Report included committee narrative requesting that the OAG submit an annual

report providing a summary of revenues collected by the OAG and of all significant litigation in which the

State is involved as both a plaintiff and a defendant to the General Assembly. The request set a due date of

November 1, 2001, and annually thereafter. Pursuant to this request, the OAG submitted its report. This

report included fiscal 2001 actual revenues as seen in Exhibit 5.





Exhibit 5





Actual Revenues

Fiscal 2001



Recoveries for Recoveries for Total Revenues

Registrations State Consumers and Recoveries





Securities $19,368,148 $238,550 $3,319,099 $22,925,797

Consumer Protection 0 539,656 5,403,180 $5,942,836



Antitrust 0 927,000 812,000 $1,739,000

Medical Fraud Control 0 1,267,257 0 $1,267,257







Total $19,368,148 $2,972,463 $9,534,279 $31,874,890





Source: Office of the Attorney General Annual Report on Significant Statewide Litigation









The report also listed significant litigation including cases in which the State may recover fees or in which

the State may be liable for payment. Estimated recoveries/liabilities were listed for each case. Appendix 5

shows the information provided by the OAG regarding significant litigation. In addition, the report also

included information on significant nonmonetary cases. As you can see, what the report did not include was

a description of the issues involved in each case and the status of the case. Last year’s committee narrative

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specifically requested a summary of all litigation in which the State was involved as either a plaintiff or a

defendant. While a list of the current caseload of significant statewide litigation and possible economic

impact on the State is helpful, this information is rendered meaningless without the knowledge of what the

issue(s) included in the case are and the legal status of the case. Therefore, DLS recommends that future

reports contain a description of the issues and the legal status of each case. Accordingly, DLS

recommends that the following committee narrative be adopted:



Annual Reporting of Significant Statewide Litigation: The committees request that the Office of the

Attorney General continue to include in its annual report information on significant statewide litigation

registration fees, fines, revenues, and settlements, as well as a summary of all significant litigation in which

the State is involved as both a plaintiff and a defendant. The summary should include a brief description of

the issues involved in each case and the legal status of each case. The budget committees request that this

report continue to be submitted annually, on November 1.









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Recommended Actions



Amount Position

Reduction Reduction

1. Delete four new positions for the Electronic Transaction $ 163,511 GF 4.0

Education, Advocacy, and Mediation Unit. Current

vacancies could be used to staff this unit once the hiring

freeze has been lifted. Moreover, the Spending

Affordability Committee recommended against adding

new positions with certain exceptions. These positions

would not meet those exceptions.

2. Delete one long-term vacant PIN. This is an 1.0

Administrative Officer III position which has been vacant

for 27 months.

3. Reduce growth in garage rent by 10%. 10,360 GF

4. Reduce growth in general fund legal services from 25.9% 17,421 GF

to 10% over the fiscal 2002 working appropriation. This

would still yield almost $11,000 in growth.

5. Adopt the following narrative:



Annual Reporting of Significant Statewide Litigation: The committees request that the Office

of the Attorney General continue to include in its annual report information on significant statewide

litigation registration fees, fines, revenues, and settlements, as well as a summary of all significant

litigation in which the State is involved as both a plaintiff and a defendant. The summary should

include a brief description of the issues involved in each case and the legal status of each case. The

budget committees request that this report continue to be submitted annually, on November 1.

Information Request Author Due Date



Annual Report OAG November 1, 2002, and

annually thereafter





Total General Fund Reductions $ 191,292 5.0









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Updates

1. House Bill 22 Would Create a New Position within the OAG



Enactment of House Bill 22 would create the position of Pornography Complaints Ombudsman within

the OAG. This ombudsman would be a practicing attorney with knowledge of pornography law. The bill

would not have an effect on the fiscal 2003 budget since it would not be effective until July 1, 2003.

However, the projected cost would be an additional $143,600 from general funds for fiscal 2004, which

includes the cost of hiring one assistant attorney general and one legal secretary as support.





2. Governor’s Salary Commission Recommends Increase for Attorney General



The January 2002 Report of the 2001 Governor’s Salary Commission recommends an increase in the

salaries of four constitutional officers, including the Attorney General. SB 203/HB 257 propose the increases

set forth in that report. Currently, the Attorney General receives $100,000 per year as salary. Exhibit 6

reflects the proposed salary schedule:



Exhibit 6





Proposed Salary Increase for the Attorney General

% Change from

Year of Term Salary Current Salary





First $112,500 12.5

Second 116,667 16.7



Third 120,833 20.8



Fourth 125,000 25.0



Note: The salaries of the Treasurer and the Comptroller will increase in the same manner. The salary of the Secretary of State

will increase at the same percentage, but that position starts from a different base salary.



Source: Department of Legislative Services









DLS has calculated the total effect of the increase in all four constitutional officer salaries. General fund

expenditures will increase by $25,200 in fiscal 2003 for salaries and fringe benefits. This reflects the effective

date of the legislation, October 1, 2002. General fund expenditures will grow in future years to $100,300

in fiscal 2007.



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Appendix 1





Current and Prior Year Budgets

Current and Prior Year Budgets

Office of the Attorney General

($ in Thousands)



General Special Federal Reimb.

Fund Fund Fund Fund Total



Fiscal 2001



Legislative

Appropriation $16,378 $120 $1,199 $1,919 $19,616

Deficiency

Appropriation 0 369 0 0 369

Budget

Amendments 121 215 199 485 1,020

Reversions and

Cancellations (17) (91) (199) (281) (588)

Actual

Expenditures $16,482 $613 $1,199 $2,123 $20,417





Fiscal 2002



Legislative

Appropriation $17,625 $422 $1,521 $2,067 $21,635

Budget

Amendments (27) (2) 0 0 (29)

Working

Appropriation $17,598 $420 $1,521 $2,067 $21,606





Note: Numbers may not sum to total due to rounding.









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Fiscal 2002



The OAG’s fiscal 2002 general fund working appropriation was reduced by $71,000 due to the

Governor’s cost containment measures, offset by $44,088 in statewide adjustments to telecommunications

expenses made by DBM.





Fiscal 2002 Deficiency



The OAG received $369,000 in special funds as a fiscal 2002 deficiency. These funds were for the legal

fees of outside counsel representing the State in the tobacco settlement fee dispute.







Fiscal 2001 Budget Amendments

Fund Type Amount Source of Funds Purpose

Special $215,000 Home Builders Registration Created a Homebuilders Registration Unit

Fund under the Maryland Home Builders

Registration Act. The funding provided for

four new positions and operating expenses

related to publicizing the new homebuilders

requirements

Federal 125,000 Governor’s Office of Crime Funds Family Violence Council project

Control and Prevention

Federal 25,299 Governor’s Office of Crime For the Family Violence Council’s Abuser

Control and Prevention Intervention Project

Federal 19,105 Governor’s Office of Crime Funds Family Violence Council project

Control and Prevention



Federal 15,000 Alternative Dispute Resolution Funded the Attorney General’s

(ADR) Commission ADR/Negotiation Seminar

Federal 2,500 State’s Attorney’s Coordination Witness protection expenses

Council



Reimbursable 132,499 Governor’s Office of Crime Support the activities of the Family Violence

Control and Prevention (Byrne Council

Memorial)



Reimbursable 107,675 Governor’s Office of Crime Operation Crime Gun

Control and Prevention (Byrne

Memorial)



Reimbursable 68,560 Department of General Services Funding for expert witness contracts

Reimbursable 65,500 Department of Transportation Funding for salaries for Contract Litigation

Division

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Fiscal 2001 Budget Amendments

Reimbursable 43,000 University of Maryland Funding for salaries and fringe benefits for

Contract Litigation Division



Reimbursable 25,299 Governor’s Office of Crime Funding for Family Violence Council

Control and Prevention



Reimbursable 19,105 Governor’s Office of Crime Funding for Family Violence Council

Control and Prevention



Reimbursable 15,000 Governor’s Office of Crime Funded the Attorney General’s

Control and Prevention ADR/Negotiation Seminar

Reimbursable 8,433 Governor’s Office of Crime Funding for part-time research assistant

Control and Prevention









Fiscal 2001 Reversions/Cancellations

Fund Type Amount Reason

Special $16,875 Cancellation of health spa licensing fees to reflect amount collected

Special 74,230 Expenditures for homebuilders unit. Hiring delay. Funds carried over to

fiscal 2002

Federal 169,404 Cancellation of unexpended Violence Against Women Formula Grant funds

brought in by budget amendment through the Governor’s Office of Crime

Control and Prevention

Reimbursable 154,674 Remaining funds from implementation of Chapter 5, Acts of 2001

Reimbursable 82,433 Cancellation of unexpended funds from Operation Crime Gun to carry

over to fiscal 2002



Reimbursable 40,500 Cancellation of unexpended funds from Family Violence Council to carry

over to fiscal 2002



Reimbursable 2,915 Unexpended funds from contract litigation









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Object/Fund Difference Report

Office of the Attorney General

FY02

FY01 Working FY03 FY02 - FY03 Percent

Object/Fund Actual Appropriation Allowance Amount Change Change



Positions



01 Regular 254.50 260.50 262.50 2.00 0.8%

02 Contractual 1.50 2.00 0 (2.00) (100.0%)



Total Positions 256.00 262.50 262.50 0 0%



Objects



01 Salaries and Wages $ 15,342,407 $ 16,608,001 $ 17,595,961 $ 987,960 5.9%

02 Technical & Spec Fees 154,876 135,230 23,000 (112,230) (83.0%)

03 Communication 323,062 460,247 445,570 (14,677) (3.2%)

04 Travel 166,580 107,300 119,000 11,700 10.9%

07 Motor Vehicles 370,378 142,449 246,840 104,391 73.3%

08 Contractual Services 1,082,852 975,845 1,132,004 156,159 16.0%

09 Supplies & Materials 173,642 145,200 337,800 192,600 132.6%









19

11 Equip - Additional 470,566 172,700 78,854 (93,846) (54.3%)

12 Grants, Subsidies, Contr 346,136 430,984 472,128 41,144 9.5%

13 Fixed Charges 1,986,537 2,428,518 2,418,251 (10,267) (0.4%)



Total Objects $ 20,417,036 $ 21,606,474 $ 22,869,408 $ 1,262,934 5.8%



Funds

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01 General Fund $ 16,482,072 $ 17,598,430 $ 18,343,146 $ 744,716 4.2%

03 Special Fund 612,895 420,079 434,334 14,255 3.4%

05 Federal Fund 1,198,742 1,521,235 1,523,031 1,796 0.1%

09 Reimbursable Fund 2,123,327 2,066,730 2,568,897 502,167 24.3%



Total Funds $ 20,417,036 $ 21,606,474 $ 22,869,408 $ 1,262,934 5.8%





Note: Full-time and contractual positions and salaries are reflected for operating budget programs only.

Appendix 2

Fiscal Summary

Office of the Attorney General

FY02 FY02

FY01 Legislative Working FY01 - FY02 FY03 FY02 - FY03

Unit/Program Actual Appropriation Appropriation % Change Allowance % Change





01 Legal Counsel and Advice $ 5,484,986 $ 5,074,845 $ 5,092,933 (7.1%) $ 5,518,087 8.3%

04 Division of Securities 1,934,529 2,168,888 2,138,888 10.6% 2,114,477 (1.1%)

05 Division of Consumer Protection 3,515,392 4,038,499 4,036,499 14.8% 4,319,097 7.0%

06 Antitrust Division 878,454 1,028,320 1,028,320 17.1% 918,910 (10.6%)

09 Medicaid Fraud Control Unit 1,573,910 1,833,628 1,833,628 16.5% 2,030,294 10.7%

14 Civil Litigation Division 1,923,575 1,833,542 1,833,542 (4.7%) 1,928,854 5.2%

15 Criminal Appeals Division 1,448,658 1,711,543 1,711,543 18.1% 1,778,939 3.9%

16 Criminal Investigation Division 1,190,136 1,356,846 1,341,846 12.7% 1,377,524 2.7%

17 Educational Affairs Division 537,042 623,461 623,461 16.1% 645,614 3.6%

18 Correctional Litigation Division 386,793 437,897 437,897 13.2% 463,401 5.8%

20 Contract Litigation Division 1,543,561 1,527,917 1,527,917 (1.0%) 1,774,211 16.1%



Total Expenditures $ 20,417,036 $ 21,635,386 $ 21,606,474 5.8% $ 22,869,408 5.8%









20

General Fund $ 16,482,072 $ 17,625,342 $ 17,598,430 6.8% $ 18,343,146 4.2%

Special Fund 612,895 422,079 420,079 (31.5%) 434,334 3.4%

Federal Fund 1,198,742 1,521,235 1,521,235 26.9% 1,523,031 0.1%



Total Appropriations $ 18,293,709 $ 19,568,656 $ 19,539,744 6.8% $ 20,300,511 3.9%





Reimbursable Fund $ 2,123,327 $ 2,066,730 $ 2,066,730 (2.7%) $ 2,568,897 24.3%

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Total Funds $ 20,417,036 $ 21,635,386 $ 21,606,474 5.8% $ 22,869,408 5.8%

Appendix 3

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Appendix 4



Breakdown of Assistant Attorneys General by Agency

Aging 2

Agriculture 2

Assessments and Taxation 3

Budget and Management 8 Plus 3 staff attorneys

Business and Economic Development 11 Plus 1 staff attorney

Education 22 Plus 1 staff attorney

Energy 1 Plus 1 staff attorney

Environment 22

Environmental Crimes 2

Environmental Services 2

Food Center Authority 1

General Services 6

Children & Youth 1

Health and Mental Hygiene 39 Plus 10 staff attorneys

Health Services Cost Review 2

Housing and Community Development 13

Human Resources 17 Plus 1 staff attorney

Insurance Administration 9

Insurance Fraud 3

Juvenile Justice 3

Labor, Licensing and Regulation 22 Plus 1 staff attorney

Lottery 3

Maryland Automobile Insurance Fund 2

Maryland Center for Public Broadcasting 2

Natural Resources 10 Plus 1 staff attorney

Planning 1

Public Safety and Correctional Services 13 Plus 1 staff attorney

Stadium Authority 1

State Police 6

State Retirement Systems 3

State Treasurer 2

Subsequent Injury Fund 6

Transportation 44 Plus 1 staff attorney

Comptroller 6

Uninsured Employers’ Fund 3

Workers' Compensation 1

Total 294 Plus 21 staff attorneys



Source: Office of the Attorney General







CC.00 - Office of the Attorney General





Appendix 5

Office of the Attorney General

Significant Litigation



Antitrust Division

Completed:

Maryland v. Kimberly-Clark $166,000 to State

$175,000 to counties and school boards

Maryland v. Playmobil Corp. $36,000 to State

Maryland v. American Cyanamid $83,000 to State

Maryland v. Zeneca Corp. $239,000 for Maryland agriculture

Pending:

Maryland v. Microsoft Corp. $50,000 to State

unquantified to consumers

Contact Lens $400,000 to State

$2 million for Maryland consumers

Maryland v. Mylan Labs $300,000 to State

$2,000 per Maryland consumer

Compact Disks $1.8 million for Maryland consumers





Consumer Protection Division

Completed:

T-Up, Inc. $3 million to State

$2.4 for consumers

Berkshire Realty Holdings, LP $55,000 to State

$347,050 for consumers

Publisher’s Clearinghouse $388,462 to State

$675,000 for consumers

Time $75,000 to State

$94,500 for consumers

Pending:

Creative Financial and Housing Services, Inc.

Omega Financial Services

Travelers Data Services

Consumer Protection Division v. Lee P. Shpritz, etal.









CC.00 - Office of the Attorney General



Medicaid Fraud Control Unit

Completed:

James Kessler and Pharmacare, Inc. $458,363 to State

Alfredo J. Herrera, M.D. $100,000 to State

Nancy A. Rosen $67,000 to State

Optimum Care Medical Clinic $20,000 to State

CVS Corporation $59,316 to State

CVS Corporation $38,774 to State

Bayer Pharmaceuticals $80,491 to State

Pending:

TAP $327,694 to State

NMC $281,727 to State





Contract Litigation Division

Pending:

Arundel Engineering Corporation $2 million Contractor claims

Driggs Corporation $2.8 million State claims

$6.5 million Contractor claims

EnviroServe, Inc. $2.7 million Contractor claims

Kibler Construction Co., Inc. $4.2 million Contractor claims

Bell BCI Company, Inc. $4.7 million Contractor claims

University of Maryland v. Fidelity and Deposition Company $1.2 million State claims





Securities Division

Recoveries to Consumers of $25,000+ or Recoveries to State of $10,000+

Completed:

Fidelity Capital Group, Inc. $75,000 for consumers

Plus Properties LLC $4,000 to State

$1,170,000 for consumers

Boardwalk Fries, Inc. $45,000 for consumers

Jet-Black International, Inc. $25,000 for consumers

Allergy Solution, Inc. $30,000 for consumers

Demitrius Glass $13,050 for State

Butler, Wick & Co., Inc. $10,000 for State





CC.00 - Office of the Attorney General



Allen & Company, Inc. $10,000 to State

$2,979 for consumers

Erik M. Carey $87,500 for consumers

Robert Mar Bynum $75,000 for consumers

Mark Considine $12,500 to State

$48,900 for consumers

IFG Network Securities, Inc. $25,000 to State

$507,750 for consumers

Armaguard $35,000 for consumers

Mutual Benefits $34,236 for consumers

Michael Keating $538,000 for consumers

Delta Equity Services $30,000 for consumers

Legg Mason $70,000 for consumers

Pending:

Legg Mason $2.5 million for consumers

Capital Concepts $520,000 for consumers

Answer Care $550,000 for consumers

Starboard $400,000 for consumers

iMSP, Inc. $56,000 for consumers





Civil Litigation Division

Damages Claimed of $1 million +

Linda Beall, et al. v. Cynthia Jackson, et al. $1.5 million

Jacqueline Manikhi v. MTA $1.5 million

Lisa Marie Spicknall v. State Police $20 million

Bears v. Raymond Kight $1.0 million

Chase v. Sherman $84 million

Dixon v. Montgomery County $1.0 million +

Dugar v. Prive George’s County $8.5 million

Ford v. Baltimore City Sheriff $7 million

Hemphill v. Aluisi $10 million

Lyles v. Prince George’s County, et al. $46 million

Turner v. Kight $15 million

Robert Lee Smith v. John Anderson $1.3 million

Wharton v. State of Maryland $1.0 billion



CC.00 - Office of the Attorney General



Young v. City of Mt. Rainer, et al. $2.5 million

Chinbuba v. Larsen $1.0 million





Comptroller of the Treasury

Pieter Kuypers v. Comptroller of the Treasury $10 million





Consumer Protection Division

Stuart Hill v. Consumer Protection Division $26 million





Courts

Register of Wills for Baltimore County v. Arrowsmith $2 million





Dept. of Agriculture

Scott McCardell v. State of Maryland $230 million





Dept. of Environment

Wolfkill v. Bauer $1 million





Dept. of Education

Keith Bradford, et al. v. Maryland State Board of Education $80 million+





Educational Affairs

Francis Akrino v. Morgan State University $2 million

Thomas Athanason v. The Servall Group and UMCP $2 million

Mary Boddie v. Mrogan State University $1 million

Brandy M. Britton v. UMBC $10 million

Michael Conte v. Towson University $5 million

Kimberly Devenport v. Towson University $5 million

Farmer v. Ramsey $1 million+

Cynthia Renee Foster v. Earl Richardson, et al. $3 million

University of MD University College’s Competent Authority $1.1 million

Stephen Hill v. University of Maryland College Park $35 million

Ardenia Holland v. Reese Boyd, et al. $1.5 million

Nofi v. Cornell $3 million+



CC.00 - Office of the Attorney General



Thomas Palotai v. UMCP $3 million

Ramakrishna v. Salisbury State University $1 million

Frank Samuels v. James Tschechtelin ($ 1 million for each of 7 courts)

Sheila Sullivan v. St. Mary’s College of MD $4 million

Oz v. Maryland Public television, et al. $5 million





Health & Mental Hygiene

Edward Dahne v. Melvin F. Kusher $25 million

E.P. v. Department of Health & Mental Hygiene $1 million

In Re: Mariner Post-Acute Network, Inc. $1,957,782

Maidy v. Guerzon, et al. $12 million

Catherine Bankston v. State of Maryland $5.0 million

Corner Clinic v. DHMH $1.9 million

Joe Dean Crawford v. Sydney Seidman $2 million+

FreeState Health Plan v. Benjamin $1.4 million

O’Neal v. Radentz $10 million

Kenn Prevans v. United States Dept. of Defense $19 million





Housing And Community Development

Albert Davis v. Schade Family Trust $11 million





Human Resources

Jasper Lloyd Dockery v. Price George’s County $5 million

Commissioner

Johnson v. Maple Shade Youth and Family Services, Inc. $1 million

John R. Williams v. State of Maryland (DHR) $1.1 million

Dennis L. Hall v. Pamela Jean Wass, et al. $29 million





Labor, Licensing & Regulation

Jon Will v. DLLR, et al. $1 million+











CC.00 - Office of the Attorney General



Public Safety & Correctional Services

Appeal of the Wackenhut Corporation $1,263,179

Appeals of the PHP Healthcare, Inc. $355,700,000





Transportation

Port Administration

Ceres Marine Terminal v. Maryland Port Administration $8.2 million

Project Life v. Glendening 15 million +





Transportation Authority

Campitelli v. Glendening, Osborne, et al. $7 million

Ovstrovsky v. Cashen, et al. $52 million

Neun v. State of Maryland $1.4 million

Claim of Waterman Family and Estate $2 million





Mass Transit Administration

Jacqueline Manikhi v. MTA $1.5 million





State Police

Brenda Candeloro v. TFC C. Cole, et al. $32 million

Audrey M. Keatts v. Maryland State Police $2 million

Knussman v. Maryland State Police $1 million

NAACP v. Maryland State Police $2.5 million

William A. Taccino v. State of Maryland $1.7 million

Perdue v. Town of Snow Hill, et al. $10 million

Singh v. Maryland State Police $1 million

Reverend Marcus & Elinor Briddell v. State of Maryland $20 million





Source: Office of the Attorney General Annual Report on Significant Statewide Litigation












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