Smith Students Assess How Deeply Federal Spending Impacts the State of Maryland

A joint report from the Maryland Comptroller’s Office and the University of Maryland Robert H. Smith School of Business finds the federal government spent $150 billion in the state in the most recent fiscal year. That includes federal wage and retirement income, contracts, grants and direct payment spending.

Eight Smith Master of Finance students and two candidates in the PhD program compiled and analyzed publicly accessible data on a granular level, identifying critical patterns in federal spending in the state over the past 10 years. Using federal employment information, they quantified the massive number of Marylanders employed by the federal government, finding that they are high earners, earning significantly more than state residents working in the private sector. The students’ rigorous analyses, which utilized historical trends and detailed patterns, led to the illuminating findings revealed in their report, including the fact that, until this year, federal employment had been expanding in Maryland.

This groundbreaking experiential learning project was guided by Liu Yang, associate professor of finance and Founding Executive Director of UMD’s Federal Statistical Research Data Center, and Vojislav Maksimovic, finance professor and William A. Longbrake Chair in Finance. They worked collaboratively with the Comptroller’s Office while overseeing the analysis. Research professor and Academic Director of Smith’s Center for Global Business, Kislaya Prasad, helped organize the joint effort.

“The students learned several very important skills and saw how those skills are implemented in a government setting,” Maksimovic says. “This is a high-profile project and they’re seeing what state agencies need—how to present it given the data and modeling tools available, and how to use those tools to deliver useful information to state officials.” 

Master of Quantitative Finance graduate Shrenik Kalambur, MQF ’25 served as project manager, delegating work to his fellow students, making sure deadlines were met and liaising with the students and the Comptroller’s Office staff. “Our work was threefold: data gathering and data cleaning, deriving insights from the information, and presenting our findings in a detailed report.” Employers are seeking workers with this kind of analytical experience, and Kalambur says the project “helped him and his peers sharpen their research, data analysis, data visualization and communication skills, all of which are extremely valuable for our job search.” When asked what this experience has meant to him, he describes it in one word: incredible. “I had the chance to work with a strong team of my peers, be mentored by the best faculty, interact directly with the Comptroller’s Office and learn several invaluable skills and insights in the process.”

The next steps in this collaboration with the Office of the Maryland Comptroller involve examining the ripple effects associated with the drastic reduction in federal spending in Maryland. A digital interface designed for policymakers and public stakeholders will allow them to better predict and understand the consequences that come with changes in federal funding and federal job availability. Maksimovic says moving forward, “this tool could be rolled out across the whole country.”

This project is a shining example of how institutions of higher learning have always provided tremendous support to local, state and federal government entities. The university community’s research and development efforts drive innovation and economic growth by utilizing the vast faculty expertise at its disposal. Their insight aids legislators and other policymakers in better serving their constituents and improving quality of life through effective risk management and proactive planning.

Smith exemplifies the partnership between higher education and government, while providing its students with experiential learning experiences that propel them into great careers. These high-profile opportunities also leave students with memories they will cherish for the rest of their lives.

Read: Impact of Federal Government Spending and Jobs on the Maryland Economy