TO: Department Directors and Autonomous Agency Heads
FROM: Governor Jennifer M. Granholm
DATE: January 24, 2007
SUBJECT: Restrictions on Expenditures for Membership in Associations and Organizations

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.

State departments and agencies participate in numerous associations and organizations. Many of these organizations provide valuable information on programs and policies of other units of government that are addressing many of the same issues facing the State Michigan. On some occasions these organizations engage in advocacy on public policy issues before the state and federal government and international bodies. To ensure the maximum effectiveness from the state's participation in such organizations, it is important that affiliations and memberships be identified and any resulting financial benefits to the State of Michigan be quantified. Accordingly, I direct:

I. RESTRICTIONS ON EXPENDITURES FOR MEMBERSHIP IN ASSOCIATIONS AND ORGANIZATIONS

A. State departments and agencies within the Executive Branch of state government shall not expend state funds for membership, including employee membership, in a organization or association unless the department or organization demonstrates to the satisfaction of the State Budget Director that the financial benefit to the State of Michigan of state participation in the organization or association outweighs the cost to the state, that participation in the organization or association has the potential to generate federal or other non-state funds for use by the State of Michigan, that participation is mandated by law, or that participation is necessary to protect the health, safety, defense, or well-being of Michigan residents and visitors. No department or agency within the Executive Branch of state government shall pay dues for membership in an association or organization, whether for the state as a whole, a department, an agency, a unit within a department or agency, or an employee or contractor, without prior review and approval by the State Budget Director.

B. Department directors and heads of autonomous agencies are responsible for determining situations where an exception to the restrictions imposed by this Directive are warranted and securing advance authorization from the State Budget Director.

II. ENFORCEMENT

A. State department directors and autonomous agency heads are directed to closely and regularly monitor expenditures for memberships 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.

III. MISCELLANEOUS

A. Authorized expenditures of state funds for membership in an organization or association shall be conducted in the most cost-effective manner that is reasonable.

B. This Directive supersedes Executive Directive 2003-21, which is rescinded. Executive Directive 1995-1 remains rescinded.

C. 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