TO: Department Directors and Autonomous Agency Heads
FROM: Governor Jennifer M. Granholm
DATE: January 24, 2007
SUBJECT: Reduction of State Expenditures for Telecommunications

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:

A. By April 18, 2007, the Director of the Department of Information Technology shall present the Governor with a plan to reduce by at least 10% state expenditures for telecommunications services by departments and agencies within the Executive Branch of state government from the level of expenditures for the fiscal year ending September 30, 2006. In developing the plan the Department of Information Technology shall consult with the Department of Management and Budget and consider all of the following:

1. An inventory and analysis of the use of existing telecommunications lines and capacity to identify unused lines or underutilized capacity.

2. Review and potential re-bidding of state telecommunications contracts for potential cost savings.

3. Use of a preferred vendor or bundled services to reduce state telecommunications costs, including, but not limited to, cellular telecommunications costs.

4. Consideration of elimination of land lines for mobile state employees or for state employees whose use of wireless telecommunications services regularly exceeds the use of telecommunications services delivered by a land line.

5. Expanded use of new and alternative technologies for delivery of telecommunications services to state employees.

6. Elimination or reduction in use of dedicated paging devices.

7. Expanded use of Internet-based instant messaging services as an alternative to other telecommunications services.

8. Sale of surplus, underutilized, or out-dated state telecommunications equipment.

B. The report to the Governor required by this Directive shall include joint recommendations from the Department of Information Technology and the Department of Management and Budget for enhancing joint purchasing or shared use of telecommunications services by this state, local governments, and political subdivisions of this state. Expenditures related to state telecommunications services shall be conducted in the most cost-effective manner that is reasonable and should take advantage of joint purchasing with other governmental entities whenever feasible. If the Department of Information Technology determines that enactment of legislation would facilitate coordinated purchasing and costs savings, proposed legislative changes shall be included in the report submitted to the Governor by the Department.

C. The Director of the Department of Information Technology shall take all actions necessary to comply with the requirements of this Directive, consistent with Michigan law. All departments and agencies shall assist the Department of Information Technology, as necessary, in implementing this Directive.

D. This Directive is effective immediately.

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