EXECUTIVE DIRECTIVE NO. 2004-6

July 7, 2004
TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
SUBJECT: Moratorium on Purchase of Supplies, Materials, Equipment, Printing or Other Products

While this administration has always been firmly committed to preserving the state’s economic resources, the necessity for fiscal responsibility is particularly acute now due to ongoing state budget constraints.  Current budgetary conditions warrant a moratorium on the purchase of supplies, materials, equipment, printing, and other products for the remainder of the current fiscal year.  Accordingly, I direct:

A. An immediate moratorium is imposed, effective for the remainder of the fiscal year ending September 30, 2004, on the purchase of, or contracting for, supplies, materials, equipment, printing, or other products financed with state funds, including but not limited to revolving funds.
 
B. The moratorium imposed by this Directive extends to all procurement of supplies, materials, equipment, printing, or other products, including, but not limited to, procurement using a procurement card issued under Section 0510.03 of the Administrative Guide to State Government, a contract release, or a direct voucher.

C. Any and all procurement authority delegated to departments or autonomous agencies, including but not limited to delegation authorized by Section 261 of the Management and Budget Act, 1984 PA 431, MCL 18.1261, or under Sections 0510.01 or 0510.12 of the Administrative Guide to State Government, is rescinded for the remainder of the fiscal year ending September 30, 2004, unless an exemption granted by the State Budget Director under Paragraph F applies.

D. Exceptions to the moratorium imposed by this Directive are permitted only if one or more of the following apply:

1. The purchase or contract is required by legal mandate or court order.

2. The purchase or contract is necessary to protect the health or safety of Michigan residents, visitors, or state employees.

3. The purchase or contract is necessary to provide for the basic requirements of residents of state institutions or facilities, including but not limited to food, clothing, and prescription drugs.

4. A legally-mandated program or activity of state government will cease to function without the purchase or contract.

5. The purchase or contract will produce budgetary savings, increase state revenues, prevent the loss of federal funds, or secure additional federal funds.

E. Individual department directors and autonomous agency heads are responsible for ensuring compliance with this Directive and for determining when an exception authorized under Paragraph D is applicable.

F. If an individual department director or autonomous agency head believes an exception to the moratorium imposed by this Directive other than an exception authorized by Paragraph D is warranted, the director or agency head shall request a moratorium exemption from the State Budget Director pursuant to procedures established by the State Budget Director.  The State Budget Director may grant an exemption under this paragraph if the State Budget Director determines the exemption will contribute to the efficient and effective administration of state government.  The State Budget Director shall report all exemptions granted under this paragraph to the Governor.

G. In complying with this Directive, whenever feasible, departments and autonomous agencies should defer any purchase of, or contract for, supplies, materials, equipment, printing, or other products until after September 30, 2004. 

H. This Directive is effective immediately and remains in effect through September 30, 2004.

Your cooperation in complying with this Directive and the continued hard work of state employees is appreciated.

______________________________
Jennifer M. Granholm
Governor