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Executive Directives Issued in Response to Budget Crisis

Last week Governor Jennifer M. Granholm issued ten executive directives, which will be in effect until the end of the fiscal year.

"These directives take action to both deal with the state's immediate cash-flow crisis and force further efficiency in overall government operation, said Teresa Bingman, Deputy Chief of Staff for Cabinet Affairs and Management and Cabinet Secretary.

A brief description of each follows:

Executive Directive 2007-10-Special Monitor for State Purchasing. Designates Ed Dore of the Department of Management and Budget (DMB) as the Special Monitor for State Purchasing to assist the Governor, DMB Director, and State Administrative Board in scrutinizing state purchasing for compliance with restrictions and to identify additional administrative efficiencies. Effective until September 30, 2007.

Executive Directive 2007-11-Moratorium on State Grants. Imposes a moratorium halting all state grant expenditures through September 30, 2007, with some exceptions.*

Executive Directive 2007-12-Moratorium on State Employee Training. Imposes a moratorium halting all state employee training expenditures, with some exceptions.

*Executive Directive 2007-13-Comprehensive State Hiring Freeze. Imposes an expanded and comprehensive moratorium on hiring of executive branch state employees, classified and unclassified, effective through September 30, 2007. Applies to creation of new positions, new hires, filling of vacancies, external hires, transfers, and promotions, with some exceptions.*

Executive Directive 2007-14-No Performance Pay Awards. Imposes a ban on performance pay awards for state employees, both bonuses and salary adjustments, for all executive branch employees. Civil Service action needed to extend to all state departments.

Executive Directive 2007-15-Collecting Revenue Owed To State. Requires departments and agencies to increase time and resources devoted to the enhancement and expediting of efforts to collect revenue owed to the State of Michigan using both state employees and outside vendors.

Executive Directive 2007-16-Periodical and Subscription Moratorium. Imposes a moratorium halting all state expenditures for periodicals and subscriptions, effective through September 30, 2007. Requires expanded use of electronic materials available through the Library of Michigan and MeL.org and expanded use of multi-agency contracts.

Executive Directive 2007-17-Expanded Moratorium on non-essential purchasing. Expands restrictions on the purchase of or contracting for all supplies, materials, equipment, printing using outside vendors, or other products in place, with some exceptions.*

Executive Directive 2007-18-Expanded Moratorium on Service Contracts and Use of Temporary Employees. Expands restrictions on service contracts or hiring of temporary employees in place, with some exceptions.*

Executive Directive 2007-19-Travel Moratorium. Expands travel moratorium and restrictions already in place. Restricts in-state travel to essential travel. Imposes strict moratorium on out-of-state travel with some exceptions.* Requires reimbursement to executive branch for travel paid by executive branch for legislative, judicial, and local officials. Encourages increased use of teleconferencing, video conferencing, and web conferencing.

State departments have also been charged with developing contingency plans in case of a revenue shortfall in May, which could lead to a shutdown of services. What does this mean for Corrections? Stay tuned to the F.Y.I. for further updates.

*Exceptions will typically be allowed only if the item is required by legal mandate, federal mandate, or court order; necessary to protect health, safety, or welfare; or necessary to produce budgetary savings or state revenue.

Michigan Department of Corrections, FYI Newsletter 040507

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