LANSING – In another budget cutting move yet this year, Gov. Jennifer Granholm on Tuesday issued an executive directive to reduce state contract spending by 5 percent to 10 percent. Executive Directive 2009-3 also establishes a moratorium on new or expanded personal services contracts and limits the use of temporary employees.
Granholm’s directive also orders the Office of State Employer and Department of Management and Budget to regularly monitory hiring practices.
“Economic conditions facing the citizens and government of our state have caused serious and immediate fiscal difficulties for our state budget,” Ms. Granholm wrote to appointees. “While the federal American Recovery and Reinvestment Act of 2009 will aid the state’s response in important ways and soften the blow of the economic crisis, this new, onetime federal assistance is temporary and not sufficient on its own to restore stability to the state’s finances. We must redouble our efforts to reduce expenditures and reform the way in which state government delivers vital services.”
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