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TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
DATE:  October 28, 2003
SUBJECT: Reductions in State Motor Vehicle Fleet

Based upon a close review of recent economic and state fiscal indicators, it is clear that prompt steps must be taken to further reduce the rate of state government expenditures.  I will soon be invoking constitutional and statutory provisions to reduce state expenditures, but decisions on where to curtail spending will not be easy because state government already has many service needs that are unmet or less than fully met.  If approved by the Legislature, additional major program expenditure reductions will be ordered.

In addition, I am issuing this Executive Directive, which has as its objective further expenditure reductions related to state motor vehicles.  While recognizing that resources are already scarce, and that greater efficiencies in the administrative operations of state departments and agencies have already been achieved, further cost avoidance and curtailment of spending are essential.  Accordingly, I direct:

A. As required under Executive Order 2003-7, the Director of the Department of Management and Budget has developed proposed guidelines and recommendations for determining the appropriate number and assignment of motor vehicles within state government, consistent with safety requirements and service delivery needs.  To ensure the optimal size of the fleet of state-owned motor vehicles and the fleet of state-leased motor vehicles consistent with current state budget constraints, the Department of Management and Budget shall work with state departments and agencies to reduce the motor vehicle fleet, including state-owned and state-leased vehicles, by an additional 1,200 vehicles not later than September 30, 2004.  By September 30, 2004, the Department of Management and Budget shall reduce the number of vehicles in the downtown Lansing motor pool to not more than 40 vehicles.

B. As required under Executive Directive 2003-7, the Department of Management and Budget has prepared a comprehensive state motor vehicle fleet study.  The Department of Management and Budget shall work with state departments and agencies to implement the following recommendations by September 30, 2004:

1. Establish standards matching vehicle types to job requirements.

2. Eliminate unnecessary vehicle options such as compact disc players, power seats, and deep-tinted windows whenever in the best economic interests of the State of Michigan.

3. Reduce the number of vehicle models and types by a minimum of 20 percent from the 104 vehicle models and types used by state government in Fiscal Year 2002-2003.

4. Require departments and agencies to sign a use agreement for each vehicle assigned to a department or agency.

5. Require employees and officers to sign a user agreement detailing their responsibility for proper care and use of state vehicles.

6. Charge departments and agencies any lost resale value resulting from damage unreported by a department or agency, poor care of the vehicle by the department or agency, or by early lease termination.

7. Eliminate any specialty vehicles for heads of departments and agencies by assigning a standard fleet vehicle when in the best economic interests of the State of Michigan.

8. Minimize the use of non-state contracted maintenance facilities for maintenance performed on state vehicles.

9. Negotiate with gasoline retailers to obtain discount pricing in areas of this state heavily traveled by state employees using state vehicles.

C. The Director of the Department of Management and Budget shall prepare and deliver to the Governor quarterly reports on the reduction of the state motor vehicle fleet and on compliance with this Directive by departments and agencies.

This Directive is effective immediately.

Your assistance and fiscally responsible action, and the continued hard work of state employees in these difficult times are greatly appreciated.

Jennifer M. Granholm