EXECUTIVE DIRECTIVE No. 2007-16

TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
DATE:  March 29, 2007
SUBJECT: Reduction of State Expenditures for Periodical Subscriptions and Other Subscription Services

Because of the economic conditions currently facing the citizens and government of this state and the resulting fiscal difficulties for our state budget, Executive Directive 2007-8 directed the Director of the Department of Management and Budget to present a plan to reduce expenditures by departments and agencies within the Executive Branch of state government for periodical subscriptions (including, but not limited to, newspapers, magazines, newsletters, and journals) and other subscription services.  Given the state's continuing fiscal crisis, state departments and agencies must initiate action now to realize additional administrative efficiencies and economies.  Accordingly, I direct:

A. Effective immediately, and through September 30, 2007, a moratorium is imposed on all expenditures for periodical subscriptions or other subscriptions services.  This moratorium does not extend to purchases for the Michigan Electronic Library (MeL.org) or the Library of Michigan.  An exception to this moratorium may be granted by the State Budget Director only if a state department or agency demonstrates to the satisfaction of the State Budget Director that a purchase is required by legal mandate or court order or is otherwise needed to address an imminent threat to the health, safety, or welfare of Michigan citizens or visitors.

B. When making purchases, departments and agencies are directed only to use the proper object code as outlined by the Department of Management and Budget so that expenditures for periodical subscriptions and other purchases can be identified accurately.

C. Departments and agencies are prohibited from using procurement cards to purchase periodical subscriptions or other subscription services.  The Department of Management Budget shall adopt any policies and procedures necessary to implement this restriction.

D. Beginning October 1, 2007, departments and agencies are prohibited from making expenditures for periodicals or subscriptions when the information provided via the periodical or subscription is available on-line or via MeL.org without charge.  Not later than September 30, 2007, the Department of Management and Budget shall compile a list of periodicals and subscriptions not eligible for expenditures.  The Department of Management and Budget and the Department of History, Arts, and Libraries shall work to inform departments and agencies about periodicals and other publications available via MeL.org.

E. Beginning October 1, 2007, departments and agencies are prohibited from using delegated purchasing authority to acquire periodical subscriptions or other subscriptions for expenditures of $ 5,000.00 or more.  The Department of Management Budget shall adopt any policies and procedures necessary to implement this restriction.

F. The Department of Management and Budget may establish mandatory use contracts for similar publications or subscription services purchased by multiple state agencies to leverage volume and secure pricing concessions when possible.

G. The Department of Management and Budget shall issue a "call for publications" to state departments and agencies requiring departments and agencies to identify publications and periodical subscriptions utilized and the reasons used.  The Department of Management and Budget shall use this information to identify further potential administrative efficiencies and economies in the provision of needed information to state departments and agencies.

H. The Director of the Department of Management and Budget is responsible for the enforcement of the requirements of this Directive.  The Director may issue, alter, or rescind administrative or procedural directives related to the purchasing of periodical subscriptions and other subscriptions as authorized under Section 131 of The Management and Budget Act, 1984 PA 431, MCL 18.1131, to implement the requirements of this Directive.  Violations of this Directive shall be reported to the Director of the Department of Management and Budget.

I. This Directive is effective immediately.

I extend my sincere appreciation for your assistance and the continued hard work of state employees as we respond to the state's difficult fiscal condition.
______________________________
JENNIFER M. GRANHOLM
GOVERNOR