TO: Department Directors and Autonomous Agency Heads
FROM: Governor Jennifer M. Granholm
DATE: January 24, 2007
SUBJECT: Restrictions on Nonessential Travel

The economic conditions currently facing the citizens and government of this state and the resulting fiscal difficulties for our state budget are detailed in Executive Directive 2007-1. Given the severity of the state budget constraints, I am issuing this Directive now, which has as its objective reduction in expenditures by departments and agencies within the Executive Branch of state government. While I recognize that resources are already scarce, and that greater efficiencies already have been achieved in the administrative operations of state departments and agencies, it is critical to implement additional efforts to reduce costs and curtail spending. Accordingly, I direct:

I. MORATORIUM ON OUT-OF-STATE TRAVEL

A. For the remainder of the fiscal year ending September 30, 2007, a moratorium is imposed on all out-of-state travel paid with state funds. An exception to the moratorium is permitted only if one or more of the following apply and the travel is approved in advance by the State Budget Director and a department director or autonomous agency head:

1. The travel is required by legal mandate or court order or for law enforcement purposes.

2. The travel is necessary to protect the health or safety of Michigan citizens or visitors or to assist other states in similar circumstances.

3. The travel is necessary to produce budgetary savings or to increase state revenues, including protecting existing federal funds or securing additional federal funds.

4. The travel is necessary to comply with federal requirements.

5. The travel is necessary to secure specialized training for staff that a department director or autonomous agency head certifies is not available within this state or cannot be brought to, or performed in, Michigan at a lesser cost.

6. The travel is financed entirely by federal or non-state funds.

B. Department directors and heads of autonomous agencies are responsible for determining situations where additional exceptions to the moratorium on out-of-state travel are warranted and securing advance authorization from the State Budget Director to proceed with travel. If out-of-state travel is necessary but does not meet one or more of the conditions in Section I.A, the State Budget Director may grant an exception to allow the travel. All exceptions granted by the State Budget Director shall be reported on a monthly basis to the Governor.

C. Upon mutual agreement between an officer or employee and a department director or autonomous agency head, the officer or employee may travel on state business at personal expense, without state reimbursement.

II. RESTRICTIONS ON IN-STATE TRAVEL

A. For the fiscal year ending September 30, 2007, departments and agencies shall make all reasonable efforts to limit in-state travel funded with state funds unless the travel is necessary for the effective and efficient operation of state government.

B. By February 16, 2007, the Director of the Department of Management and Budget shall issue recommendations to state departments and autonomous agencies on measures to reduce in-state travel expenditures.

III. REIMBURSEMENT OF JUDICIAL TRAVEL

A. Department directors and autonomous agency heads shall prepare inter-account billings to charge the State Court Administrative Office or the appropriate court for any travel by a justice, judge, or judicial staff financed from any appropriations for an Executive Branch department or agency. Copies of the billings shall be submitted to the State Budget Director for compilation of a state-wide report.

B. This section applies to all travel funded by Executive Branch appropriations in Fiscal Year 2006-2007 and all funds controlled by departments or agencies of the Executive Branch.

IV. REIMBURSEMENT OF LEGISLATIVE TRAVEL

A. Department directors and autonomous agency heads shall prepare inter-account billings to charge the Secretary of the Senate or the Clerk of the House of Representatives, as appropriate, for any travel by a legislator or legislative staff financed from any appropriations for an Executive Branch department or agency. Copies of the billings shall be submitted to the State Budget Director for compilation of a state-wide report.

B. This section applies to all travel funded by Executive Branch appropriations in Fiscal Year 2006-2007 and all funds controlled by departments or agencies within the Executive Branch of state government.

V. REIMBURSEMENT OF LOCAL GOVERNMENT TRAVEL

A. Department directors and autonomous agency heads shall prepare billings to charge local units of government for any travel by a local government official or an official of a political subdivision of this state financed from any appropriations for an Executive Branch department or agency. Copies of the billings shall be submitted to the State Budget Director for compilation of a state-wide report.

B. This section applies to all travel funded by Executive Branch appropriations in Fiscal Year 2006-2007 and all funds controlled by departments or agencies of the Executive Branch.

VI. TELECONFERENCING, VIDEO CONFERENCING, AND WEB-BASED CONFERENCING AS ALTERNATIVES TO TRAVEL

A. Departments and agencies shall encourage the use of teleconferencing, video conferencing, or web-based conferencing as an alternative to travel, when financially prudent. The current budget situation demands that only the most essential travel occur. Whenever teleconferencing, video conferencing, and/or web-based conferencing is a cost-effective alternative to travel, it should be utilized.

B. By February 16, 2007, the Director of the Department of Management and Budget shall issue recommendations to state departments and autonomous agencies on measures to expand the use of teleconferencing, video conferencing, web-based conferencing, and other alternatives to travel when conducting state business.

VII. ENFORCEMENT

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

B. The State Budget Director shall take all actions necessary to enforce the requirements of this Directive, consistent with Michigan law. All departments and agencies shall assist the State Budget Office, as necessary, in implementing this Directive.

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 Secretary 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.

VIII. MISCELLANEOUS

A. All travel paid with state funds should be conducted in the most cost-effective manner that is reasonable given time considerations and should take advantage of ride sharing or lower cost travel alternatives when feasible. Travel paid with state funds should be limited to the minimum number of people necessary to serve Michigan taxpayers.

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.

______________________________
JENNIFER M. GRANHOLM
GOVERNOR