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Administrative Order 2 (2002)

General Funds Spending Restrictions

OFFICE OF THE GOVERNOR September 5, 2002

Due to the uncertain outlook of the State and national economies, it is necessary to continue to keep a close watch on expenditures to avoid the creation of deficits and the subsequent delays in State payments. By beginning FY2003 with appropriate spending restrictions in place, we will improve the State’s ability to continue to provide essential state services through the fiscal year.

All departments, agencies, boards and commissions under the jurisdiction of the Governor are required to prepare a formal expenditure plan for Fiscal Year 2003. The plan shall be submitted on forms provided by the Bureau of the Budget. The Bureau of the Budget may exempt agencies with small general funds appropriations from the requirement to submit an expenditure plan.

All departments, agencies, boards and commissions under the jurisdiction of the Governor are also required to implement the spending restrictions specified in this Order. All other officers, agencies, boards, commissions and authorities not under the jurisdiction of the Governor are encouraged to implement similar measures. These restrictions shall apply to all activities and programs receiving funding directly or indirectly from the State’s General Funds.


    Except as provided in this Section, no full or part-time vacancy shall be filled without the prior written approval of the Bureau of the Budget (the Bureau). Agencies wishing to seek an exception to fill a vacancy shall submit a written justification to the Bureau.

    The Bureau may approve an exception where the requesting agency demonstrates a compelling governmental interest in filling the vacancy. The prohibition against filling vacancies applies to all new hires, transfers and promotions. This Section does not apply to semi-automatic promotions or other promotions or transfers required by a collective bargaining agreement. Nothing in this Section shall prohibit the Bureau from approving the assignment of resources between agencies, such as an inter-agency transfer of personnel, where such assignment does not increase the number of filled positions in State service.

    A denial of an exception request by the Bureau may be appealed to a committee composed of the Governor’s General Counsel (chairperson), the Director of the Bureau of the Budget and the Governor’s Director of Policy and Development. Decisions of this committee will be communicated through the Bureau and no offer of employment shall be made without written notification from the Bureau.


    Effective immediately, no procurement of equipment may be instituted and no equipment may be acquired by any agency, whether such acquisition is by purchase, lease, lease-purchase, or otherwise, without the prior written approval of the Bureau. Requests for exceptions will be processed in the same manner as is specified under Section I, Restrictions on Hiring.


    Effective immediately, no procurement shall be instituted and no contract shall be entered or obligation incurred for electronic data processing supplies, services or equipment without the prior recommendation of the Director of the Governor’s Technology Office and the Bureau’s Chief of Information Technology and the written approval of the Director of the Bureau of the Budget.

    Also, effective immediately, no expenditures for out-of-state travel may be made without a favorable recommendation from the Governor’s senior policy advisor with responsibility for the agency and the written approval from the Bureau. A denial of an out-of-state travel request may be appealed to the Governor’s General Counsel.


    Effective immediately, unless previously submitted to the Bureau of the Budget in an approved expenditure plan, no transfers among fiscal year 2003 line items will be made into or out of any general funds appropriations. Exceptions to this provision will be granted through written approval from the Director of the Bureau of the Budget.

To promote the orderly implementation of this Order, each agency shall designate a single point of contact within the agency for the purpose of sending and receiving any of the notices, forms or appeals authorized or required by this Order.

Questions regarding this Order may be directed to Bureau of the Budget Director Steve Schnorf (PH: 217/782-4520).