October 28, 2003
October 28, 2003
LANSING – Governor Jennifer M. Granholm today issued six executive directives aimed at further reducing across-the-board expenditures by departments and agencies within the Executive Branch of state government. The directives focus on saving money by restricting the purchase of non-essential supplies, reducing the state’s motor vehicle fleet, and by limiting travel, periodical subscriptions, membership associations, and wireless communication services.
“We are obligated to spend every penny of every taxpayer dollar efficiently and effectively,” said Granholm. “Since January, Michigan has saved more than $14 million in administrative spending alone. With additional restrictions and greater fiscal discipline, we expect even more savings this year.”
“The sole impetus behind these directives is saving money,” Granholm added. “In tight economic times, every cent counts. Thanks to incredibly creative and hard-working state employees, we’ll continue to be able to offer excellent service in a more cost-effective way.”
The directives seek to curtail spending in places where budget and economic research show discretionary spending may be cut or delayed. The directives are effective immediately and will remain so in effect until the end of the current fiscal year, September 30, 2004. Each directive is summarized as follows:
• Executive Directive 2003 -16: Restriction on Purchase of Non-Essential Supplies, Materials, Equipment, Printing or Other Products. Under this directive, the purchase of, or contracting for, all supplies, materials, equipment, printing, or other products financed with state funds should be limited to only the most essential requirements. Each department is given the flexibility to reduce expenditures in the way that works best for the department. However, if Department of Management and Budget (DMB) or the State Budget Office does not see demonstrable progress, DMB is required to rescind delegated purchasing authority.
• Executive Directive 2003-17: Restrictions on Non-Essential Travel. This directive includes a twofold plan to allow only essential travel expenses by 1) placing a moratorium on out-of-state travel and 2) restricting in-state travel. Web-conferencing, videoconferencing, and teleconferencing are encouraged as an alternative to travel wherever possible.
• Executive Directive 2003-18: Reductions in State Motor Vehicle Fleet. This directive calls for the state motor vehicle fleet to be reduced by an additional 1,200 vehicles by the end of the fiscal year. Further, the directive requires DMB to implement its plan to increase efficiencies and decrease motor vehicle fleet expenditures.
• Executive Directive 2003-19: Reduction in Use of Wireless Phone Services, Pagers and Wireless Data Services. Stipulated in this executive directive, each department must cut cellular phone services, wireless pager services, and wireless data services by at least 15 percent from expenditure levels in the previous fiscal year.
• Executive Directive 2003-20: Reductions in Periodical Subscriptions. This directive orders each department and autonomous agency to develop and present a plan to reduce expenditures for periodical subscriptions by at least 15 percent from expenditures in the previous fiscal year. Whenever possible, periodicals should be accessed through the Library of Michigan or in electronic form at reduced or no cost. This directive would not apply to the Library of Michigan, which will be providing periodicals and electronic databases to other state agencies and the public.
• Executive Directive 2003-21: Membership in Associations and Organizations: This directive requires departments and agencies to obtain approval from the State Budget Office prior to paying any dues for membership in associations or organizations with state funds.
“Fiscal responsibility is an on-going goal and cannot be accomplished by a one-time cut,” Granholm said. “While greater efficiencies in the administrative operations of state departments and agencies have already been achieved, the necessity still exists for further action. The assistance and continued diligence of state employees is duly recognized and greatly appreciated."
