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TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
DATE:  October 28, 2003
SUBJECT: Reductions in Use of Wireless Phone Services, Pagers, and Wireless Data Services

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 telecommunications services.  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. By December 31, 2003, each department and autonomous agency shall develop and present to the State Budget Director a plan to reduce Fiscal Year 2003-2004 expenditures for the following telecommunications services:  cellular phone services, wireless pager services, and wireless data services, by at least 15% from expenditure levels in Fiscal Year 2002-2003.

B. Whenever feasible, departments and agencies should limit the use of cellular phone services, wireless pager services, and wireless data services to essential state functions.

C. State department should continue to utilize telecommunications services whenever the use of telecommunications services is a less costly alternative to travel.

D. The Department of Management and Budget in cooperation with the Department of Information Technology shall review all state agreements for wireless communications services and report to the Governor not later than February 27, 2004 possible opportunities for contract consolidation and rate reductions.

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

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

Jennifer M. Granholm