TO: Department Directors and Autonomous Agency Heads
FROM: Governor Jennifer M. Granholm
DATE: July 26, 2006
SUBJECT: Restrictions on Personal Services Contracts
Workforce stability and continuity are critical to a knowledgeable state classified civil service and to the provision of efficient and effective services for Michigan taxpayers. The use of temporary contract workers as long-term replacements for state classified civil service employees remains inconsistent with the goal of fostering a highly qualified and dedicated state workforce. Accordingly, in addition to any existing assignment duration limitation applicable under existing contracts for the use of temporary employee services or use of contractual personal services, I direct:
I. RESTRICTIONS ON PERSONAL SERVICE CONTRACTS
A. Departments and agencies shall not request, and the Department of Management and Budget shall not approve, any contract for personal services when the person seeking to contract with this state or a department, agency, or other political subdivision of this state is employed within state government either as an employee in the state classified civil service or as an unclassified employee.
B. All of the following shall apply to the use of temporary employee services and personal services contracts by departments and agencies:
1. Each temporary employee service contract assignment must be reported to the Office of the State Employer.
2. The Department of Management and Budget shall not approve the use of temporary employee services or a personal services contract if the Office of the State Employer objects.
3. No use of temporary employee services or personal services contract may extend beyond 480 hours without the prior approval of the Office of the State Employer.
4. The Department of Management and Budget shall not approve the use of temporary employee services or a personal services contract authorizing the provision of services in excess of 480 hours per assignment without the prior approval of the Office of the State Employer.
C. As used in this section:
1. “Assignment” means the particular job or set of duties performed or to be performed by an individual at a work location on a shift.
2. “Personal services” means work performed for the direct benefit of this state by an individual for compensation.
II. ENFORCEMENT
A. The Office of the State Employer and the Department of Management and Budget shall take all actions necessary to enforce the requirements of this Directive, consistent with Michigan law. All departments and agencies shall assist the Office of the State Employer and the Department of Management and Budget, as necessary, in implementing this Directive.
B. 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.
C. Reports of violation of the requirements of this Directive shall be transmitted to the Director of the Department of Management and Budget and to the Secretary of the State Administrative Board.
D. 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. Nothing in this Directive shall be construed to alter or modify any Civil Service Commission rule or regulation.
B. The restrictions established under this Directive shall apply regardless of the funding source financing a position or a contract.
C. The restrictions established under this Directive apply both to new contracts and to the amendment, extension, renewal, or reauthorization of existing contracts.
D. Executive Directive 2004-9 is rescinded in its entirety.
E. This Directive is effective immediately.
______________________________
JENNIFER M. GRANHOLM
GOVERNOR
