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TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
DATE:  March 29, 2007
SUBJECT: Moratorium on State Employee Training Expenditures

As you are well aware, the economic conditions facing the citizens and government of this state have caused serious and immediate fiscal difficulties for our state budget.  As a result of these economic conditions, the repeal of the Single Business Tax, and inaction by the Michigan Legislature, the State of Michigan continues to face a combined projected budget deficit of nearly $3 billion.

Given the severity of the budget deficit, state departments and agencies should continue to aggressively identify and implement administrative efficiencies and economies to generate budgetary savings.  While I recognize that resources are scarce, and that greater efficiencies in the operation of state departments and agencies have been achieved, additional cost-containment measures must be implemented.  Accordingly, I direct:


A. For the remainder of the fiscal year ending September 30, 2007, a moratorium is imposed on the expenditure of funds for the provision of training to state employees.  Employee training expenditures shall be deferred and limited only to only the most essential requirements.  An employee training expenditure meets essential requirements only if a department or agency can demonstrate that one or more of the following applies:

1. An employee training expenditure is required by legal mandate, federal mandate, or court order.

2. An employee training expenditure is necessary to protect the health, safety, or welfare of Michigan citizens or visitors.

3. An employee training expenditure is necessary to produce budgetary savings or to protect existing state revenue or secure additional state revenue.

B. In complying with this Directive, department directors and heads of autonomous agencies should regularly review expenditures and implement measures to restrict employee training expenditures unless authorized by this Directive.

C. The restrictions established under this Directive apply both to new training activities, previously authorized training activities, and to the renewal, extension, or reauthorization of existing training activities, whether performed pursuant to a contract or not.  The restrictions established under this Directive do not apply to state employee training activities provided without cost to a state department or agency.


A. State department directors and autonomous agency heads are directed to closely and regularly monitor and review employee training expenditures to ensure compliance with the requirements and spirit of this Directive and the efficient expenditure of tax dollars.

B. The State Budget Office shall review department and agency expenditures on a regular basis and shall make every effort to ensure compliance with this Directive, including, but not limited to, implementing limits on employee training expenditures and restrictions on the release of fund for employee training activities.  Other departments and agencies shall cooperate fully with the State Budget Office in this effort.

C. In exercising general supervisory control over the functions and activities of all administrative departments, boards, commissioners, and officers of the state, and of all state institutions, as required under Section 3 of 1921 PA 2, MCL 17.3, the State Administrative Board shall monitor compliance with the requirements of this Directive.

D. Violations of the requirements of this Directive shall be reported to the State Budget Director and to the Chairperson of the State Administrative Board.

E. The State Administrative Board may take action to enforce the requirements of this Directive as authorized under 1921 PA 2, MCL 17.1 to 17.3.


A. The restrictions established under this Directive apply regardless of the fund source financing an employee training expenditure.

B. This Directive is effective immediately and remains in effect through September 30, 2007.

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.