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Governor Granholm Issues Directive Ending Performance Bonuses for State Managers

October 10, 2003

LANSING – Governor Jennifer M. Granholm today announced that in response to the state’s latest budget crisis, her administration will not pay bonuses to its highest paid managers.

This morning, the Governor signed Executive Directive 2003-15 that prohibits "performance pay awards" through the 2004 fiscal year. The Governor’s directive formalizes a policy that has been in place since January and comes one day after the Civil Service Commission decision to allow "performance pay awards."

"At a time when we could be facing close to a billion dollar budget deficit, it would be wrong for some of our highest paid managers to be paid performance bonuses when our dedicated civil service employees have been asked to sacrifice," said Granholm. "When I promised that everyone would be asked to tighten their belts, I meant everyone."

The directive applies to all directors and managers in departments and agencies under the Governor’s supervision.

"Every cut we’ve had to make, every necessity we’ve learned to do without, and every resource that we have creatively stretched due to the state budget is undermined by these bonuses," stated Granholm. "Paying bonuses would only serve to undermine the values we are trying to instill in state government."