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April 10, 2003

Dear Fellow State Employee:

It has been 100 days since I took my oath to serve as your Governor. Our pace has been fast, and we have accomplished an awful lot already. Continued achievement rests not on my but on our shoulders. So, I am writing to share some thoughts on the challenges we face in the weeks and months ahead.

First, let me thank so many of you for your responses to the email letters I sent in the past. I have heard from hundreds of you directly or through your managers, and the two main themes repeated again and again are your thanks for the openness of this office and your tremendous pride in, and commitment to, public service. The openness will continue. We are in this together, and I will do my utmost to keep you informed about the important issues in our collective work. I am hopeful, grateful, and energized. I hope you are, too, even in this sobering time of war.

As brave men and women risk their lives overseas, it is more important than ever that we live up to our potential as engaged citizens here at home. These are times for sensitivity to the deep emotions the war evokes – equally powerful among those in passionate support or passionate opposition to the war – and times for reaching out to support our troops and their families.

I humbly ask you to be great friends to our co-workers – 130 of whom are on active military leave – and those whose spouses, children, nephews and nieces, and friends are in active service. I have asked all our leaders to be sensitive to their needs and to look for ways to support them.

I will be supporting our co-workers at war by asking the Civil Service Commission to extend our policy of supplementing the military pay of any state employee called up to active duty to the level they would receive in state government. Personal economic costs should not be added to the extreme burdens they already bear.

In the context of the war and its human challenges, the budget crisis seems comparatively small. Yet, it is the most important work we must take on together this year. As you probably know, the general fund budget deficit for the coming year was projected at $1.7 billion. It was caused by two main forces: cuts in revenue without corresponding cuts in spending, and the continued poor performance of the economy.

Our team in the budget office did an exceptional job under tremendous time pressures, and together we devised a budget I presented to the Legislature with pride. It features four key elements:

(1) It pursues the priorities of protecting families and educating children: We worked very hard to accomplish the following:
  • We restored the K-12 foundation grant from the state to $6,700.
  • We restored Medicaid funding to ensure that the families of foster children have health care
    protection.
  • We tripled the number of seniors eligible for prescription drug coverage through an
    expanded state drug program.
  • We identified funds to allow a new trooper school to be enrolled to restore the ranks of the
    Michigan State Police.

(2) It cuts more than had ever been cut from the budget ($1.1 billion) to eliminate the deficit. For the first time in years, this is a budget proposal that does not spend more than it takes in.

(3) It does not increase general fund taxes. This was my commitment and the ongoing expectation of citizens.

(4) It makes every effort to improve the efficiency and scope of what we do and streamline government services. We are working hard to make government work better and cost less.

This fourth point is one I would like to discuss further with you. First, let me say that this budget is not an assault on government workers and government work. I am constantly impressed by the dedication and ability of our employees.

As one of our first looks at containing costs, I have instructed the department heads to examine outside contracting with a fine tooth comb. State contractors have all been told that they must find cost savings and that future contracts are not guaranteed. I know that in many cases our employees have the expertise to provide services that are currently provided by contractors. We should be promoting our own workforce – not building profit opportunities for outside vendors.

To do more we must be more creative and efficient, and I know we must engage you in the discussions. I am looking for your thoughts for saving money, for finding new grant dollars, and for leveraging federal funds. We have to find efficiencies in all we do. I am pushing my top leaders to seek your input and to listen to you. I am listening, too. Indeed, I have forwarded to Mitch Irwin, Director of DMB, well over a hundred suggestions for savings that I received via e-mail from you. I am looking for your continued input, feedback, and support, and I know you’ll deliver, because I know how strongly you feel about the work you do.

I will also be working with you and with our labor leaders to find fair, thoughtful, win-win ways to save. For instance, because of our current budget crisis, I will be asking all state agencies to promote the use of Voluntary Work Schedule Adjustment Programs, such as Plan A, where a reduction in work hours does not adversely affect our ability to deliver services.

I am confident that a year from now we can look back with pride at how we solved this budget crisis. At a fundamental level, we have deeply shared interests: a workplace that is rewarding, satisfying, and engaging in which to produce great work for the citizens we serve. I will be looking to create and extend and preserve such a workplace in all we do.

I thank you again for all you have done to help us get off to a great start, albeit in very tough and sobering times. I look forward to continuing to work together to do great things for the people of Michigan. Let me know what you think and how you can help.

Sincerely,

Jennifer M. Granholm
Governor

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