October 28, 2004
October 28, 2004
LANSING – Governor Jennifer M. Granholm today issued three executive directives that continue the spending constraints on across-the-board expenditures by departments and agencies within the Executive Branch of state government. The directives focus on saving money by limiting non-essential travel, restricting the purchase of non-essential supplies, and restricting the creation of new positions or hiring of new employees.
“The sole impetus behind these directives continues to be saving money,” Granholm said. “In these tough economic times we must use every tax dollar efficiently and effectively. Fiscal responsibility remains a top priority. We were able to save millions of dollars in the last fiscal year, and we will continue to maintain tight fiscal discipline this year as well.”
The directives are effective immediately and will remain in effect until the end of the current fiscal year, September 30, 2005. Each directive is summarized as follows:
• Executive Directive 2004 – 7: Restrictions on Non-Essential Travel. This directive includes a two-fold plan to allow only essential travel expenses by 1) placing a moratorium on out-of-state travel, subject to limited exceptions and 2) restricting in-state travel. Web-conferencing, videoconferencing, and teleconferencing are encouraged as an alternative to travel wherever possible.
• Executive Directive 2004 – 8: Restrictions on Purchase of Non-Essential Supplies, Materials, Equipment, Printing or Other Products. Under this directive, the purchase of, or contracting for, all supplies, materials, equipments, printing, or other products financed with state funds should be deferred and limited to only the most essential requirements. Each department is given the flexibility to reduce expenditures in a way that works best for the department. However, if the 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 2004 – 9: Restrictions on Creation of New Positions, Hiring of Employees, and Acquisition of Contractual Services. This directive limits the creation of new positions, the hiring of new employees, and the acquisition of contracts for services financed with state funds to only the most essential requirements. Each department is given flexibility to meet staffing needs in a way that works best for the department. The Directive also gives the Office of the State Employer new tools to restrict the outsourcing of state work to temporary contractors.
“While resources are already scarce, and greater efficiencies in the administrative operations of state departments and agencies have already been achieved, it is essential we continue our efforts to reduce costs and curtail spending,” Granholm said. “The sacrifices and hard-work of our state employees is recognized, and greatly appreciated.”
