April 19, 2005

Sale Could Net $1 Million, Boost Efficiency

LANSING – Governor Jennifer M. Granholm said today the administration will sell five aircraft and implement efficiencies to streamline the state’s aeronautics operation to reduce state spending.  
 
The Governor’s decision is part of her ongoing effort to improve the efficiency of state government and reduce spending.  It follows the recommendations of an internal task force established at the Governor’s request to review air service efficiency within the departments of Management and Budget (DMB), Transportation, State Police, Natural Resources, and Military and Veterans Affairs
 
“At a time when we are accounting for every dime spent by state government, there are no sacred cows,” Granholm said.  “Just as we have downsized the vehicle fleet, we’re now ready to downsize the number of aircraft in a way that will result in greater efficiency without sacrificing the work we’re doing for Michigan citizens.”
 
“We plan to take advantage of cost-saving opportunities in aeronautics without compromising service,” said DMB Director Mitch Irwin, who chaired the task force.  “While each department has unique roles and responsibilities, we want to provide the best, most cost-effective service and can do that by sharing resources.”
 
The task force report includes the following recommendations:

•  The immediate sale of five aircraft with an estimated value of $1 million, and operational savings of $116,000 (through fiscal year 2006). Sale of MDOT aircraft must be approved by the Michigan Aeronautics Commission.
 
•  Consolidation of scheduling, dispatching, and passenger transport flights within the Michigan Department of Transportation.

•  Sharing of facilities and personnel in one location for major maintenance, repair, and upgrade of aircraft.

•  Forming an aviation safety team among those departments operating aircraft to keep safety as a top priority and ensure consistent communication in all aviation operations.

Since January 2003, the Granholm Administration has reduced state spending by approximately $325 million through contracts savings, vehicle fleet reductions, and administrative efficiencies.
 
With the Governor’s approval, implementation of recommendations will begin June 1, 2005. 

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