February 26, 2003
TO: Department Directors and Autonomous Agency Heads
FROM: Governor Jennifer M. Granholm
SUBJECT: Reduction in State-Owned or State-Leased Motor Vehicles

While this administration is firmly committed to preserving the state’s economic resources and regularly examining state assets and expenditures, the necessity for fiscal responsibility is particularly acute now, due to the state budget crisis. Current budgetary conditions warrant an examination of the state motor vehicle fleet and expenditures related to the fleet. Accordingly I direct:

1. Except as provided in Paragraph 3, effective immediately and continuing until such time as this Directive is revoked or superceded, each department or autonomous agency shall refrain from placing any order for, or entering into any agreement for, the purchase, lease, or other acquisition of any motor vehicle.

2. Not later than March 14, 2003, each department director or autonomous agency head shall identify each motor vehicle ordered by or for the department or agency not yet delivered. If an order may be canceled without the imposition of a penalty or other cost to the state, the department or agency, or the Department of Management and Budget, as appropriate, shall cancel the order if the cancellation is in the best financial interests of the state, as determined by the Director of the Department of Management and Budget.

3. The requirements of Paragraphs 1 and 2 do not apply to any Michigan State Police patrol vehicle, ambulance, fire fighting vehicle, emergency service vehicle, military, or road-clearing or road-maintenance vehicle necessary to assure the health, safety, defense, and well-being of Michigan citizens and visitors.

4. Not later than March 31, 2003, the Director of the Department of Management and Budget shall reduce the total fleet of state-owned or state-leased vehicles by at least 1,007 vehicles from the number of state-owned or state-leased fleet vehicles as of December 31, 2002.

5. Not later than April 30, 2003, each department and autonomous agency shall conduct, prepare, and deliver to the Director of the Department of Management and Budget a thorough and comprehensive review of each motor vehicle utilized by the department or agency, including any department or agency official or employee, and a report containing all of the following:

a. An inventory of each motor vehicle, including its make, model, year, and vehicle identification number.

b. A justification of the need for each motor vehicle.

c. An identification of each motor vehicle assigned by or to the department or agency, including the job title and classification of the person to whom the motor vehicle has been assigned, if any, and the reasons why a motor vehicle must be provided to the person holding a position with that job title and classification.

d. An identification of the current location and use of each motor vehicle assigned or previously assigned to any official or employee of the department or agency who retired or otherwise ended state employment during the one-year period beginning on January 1, 2002 and ending on December 31, 2002.

e. Proposed methods to redeploy vehicles, including but not limited to seasonal assignment or reassignment in place of a new vehicle.

f. A proposal by the department or agency to reduce the number of motor vehicles utilized.

g. Any other proposals by the department or agency to reduce the cost of acquiring, maintaining, and operating motor vehicles utilized by the department or agency.

6. By May 30, 2003, the Director of the Department of Management and Budget shall prepare and deliver to the Governor a thorough and comprehensive motor vehicle fleet management study, which shall include all of the following:

a. An analysis of the department and agency reports required in Paragraph 5.

b. An analysis comparing the cost of motor vehicle leasing versus motor vehicle ownership and other potential means of reducing the costs to acquire, maintain, and operate state motor vehicles.

c. Proposed guidelines or other recommendations for immediately determining an appropriate number and assignment of motor vehicles within state government, consistent with safety requirements and service delivery needs.

d. A proposal or other recommendation for disposing of motor vehicles the Director believes warrant disposal, and for maximizing the prices paid to the state for motor vehicles being sold or otherwise disposed of by the state.

e. A proposal or other recommendation of means by which departments and agencies may reduce the number of motor vehicles (such as increased use of teleconferencing, video conferencing, web-based conferencing, or the consolidation of state offices).

f. Methods by which departments and agencies may work to increase the fuel efficiency of motor vehicles.

g. Recommendations as to how, on an on-going basis, to reduce the size of the state motor vehicle fleet, monitor motor vehicle costs, implement cost-effective motor vehicle acquisition and disposition practices, and create other on-going cost savings.

Your cooperation in complying with this Directive is appreciated.

______________________________
Jennifer M. Granholm
Governor