| Governor Signs Executive Order TO Control Spending By State |
| Thursday, April 23, 2009 11:23:47 AM - Middletown Ohio |
 Press Release - April 22, 2009
Governor Orders Further Spending Controls in Response to Ongoing Financial Challenges
Columbus, Ohio - Ohio Governor Ted Strickland today signed an executive order requiring the further reduction of state agency expenditures in response to the continuing impact of the national recession on the state's fiscal situation. The governor's order requires state agencies to immediately adopt mandatory spending control strategies for fiscal year 2009 and for fiscal years 2010 and 2011.
"Our commitment to live within our means has required difficult choices and belt-tightening in an already austere budget environment," Strickland said. "But even after reducing the state workforce by more than 3,500 employees and undertaking nearly $2 billion in spending cuts and reductions, the national recession continues to impact the state budget. I am ordering additional limits to general revenue fund spending immediately to ensure the state continues to meet critical financial obligations while concluding the fiscal year with Ohio's budget in balance."
Fiscal Year 2009
In addition to the $1.9 billion in substantial reductions already undertaken in the current biennium, the order requires mandatory spending controls for the duration of the current fiscal year, which ends June 30, 2009. Except under limited circumstances, all agencies are required to reduce general revenue fund (GRF) contracting expenses; limit procurement activity, which includes stopping the purchase of additional services or supplies with general revenue funds; and a requirement that agency directors must personally review and approve any purchase orders that cost $1,000 or more.
The director of the Office of Budget and Management is required to conduct an analysis of these actions and report savings the state expects to realize through the implementation of these spending controls to the governor by May 10, 2009.
The order also directs the OBM director to reduce the mileage reimbursement rate for all Executive Agencies to 45 cents per mile, effective May 1 for all exempt personnel statewide. The same reduction will be made for all bargaining unit employees on October 1 as required by the current bargaining agreement.
Fiscal Years 2010-2011
The executive order requires state agencies to develop spending plans for contracted services and supplies, working toward a goal of a 30 percent overall reduction in such spending for fiscal years 2010-2011. Agencies are required to submit those spending plans to the Office of Budget and Management Director by May 31, 2009.
Agencies are encouraged to renegotiate contracts whenever legally permissible to do so and, for competitively bid contracts that may only be renewed without renegotiation, allow them to expire and rebid rather than renew the contract.
The governor's order outlines other tools by which agencies may reach the 30 percent spending reduction target for contracted services and supplies, such as reductions to furniture and equipment purchases, printing and mailing expenses and information technology expenses. It requires agencies to reduce travel expenditures and restricts reimbursable travel. Additionally, it requires an agency-by-agency review of employee parking expenses.
The governor also expressed his appreciation of state employees.
"I am deeply grateful to the members of my cabinet and our state of Ohio employees," Strickland said. "Despite the enormous sacrifices asked of them, time and again Ohio's state employees have shown that they remain selflessly focused on providing the best possible services to the people of Ohio."
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