Michigan Places Moratorium on Purchasing

Michigan Gov. Jennifer M. Granholm last week announced that she has signed an executive directive halting the purchase of, or contracting for, supplies, materials, equipment, printing, or other products by state departments or agencies using state funds for the remainder of the current fiscal year. The Governor's ban on unnecessary spending comes one month earlier than a similar ban in 2003.

"We are committed to living within our means," Granholm said. "The state budget situation demands that we tighten our belts once again so we can protect the state's revenues to the extent possible."

Exceptions to the spending ban will be permitted when:

• the purchase or contract is required by legal mandate or court order
• the purchase or contract is necessary to protect the health or safety of Michigan residents, visitors, or state employees
• the purchase or contract is necessary to provide for the basic requirements of residents of state institutions or facilities including, but not limited to, food, clothing and prescription drugs
• a legally-mandated program or activity of state government will cease to function without the purchase or contract
• the purchase or contract will produce budgetary savings, increase state revenues, prevent the loss of federal funds, or secure additional federal funds.

"I appreciate the cooperation of department directors and agency heads on this matter," Granholm said. "By working together and initiating such proactive measures, we can make sure that we are being responsible and prudent with state revenues."