EXECUTIVE ORDER S-4-03


WHEREAS, the State General Fund is facing a significant imbalance between revenues and expenditures; and

WHEREAS, state government has an obligation to safeguard the trust of the people of the State of California; and

WHEREAS, it is vital to the economic health and prosperity of California that state government be conducted in the most business-like and economical manner, and that the people of this State be assured that their tax dollars be spent wisely; and

WHEREAS, additional action must be taken to assure that the State lives within its means.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this order to become effective immediately:

1. State agencies and departments shall not enter into any new contracts or agreements to lease or purchase equipment, except as may be determined by the Director of Finance to be in the best interest of the State.

2. State agencies and departments shall not enter into any new services contract, or make any changes to an existing contract that would increase the amount or extend the term of such a contract, except as may be determined by the Director of Finance to be in the best interest of the State. Provided, however, that the provisions of this paragraph 2 shall not apply to any contract for legal services or for expert testimony in pending litigation.

3. State agencies and departments shall cancel or postpone any non-essential trips such as seminars, conferences or training.

4. Where permissible by law and regulations, all state agencies and departments are ordered to disencumber non-essential contracts or purchase agreements funded from the General Fund, where goods and services have not been received, and to cancel the related contracts.

5. Agency secretaries and other cabinet-level positions will be responsible for ensuring compliance with the provisions of this Executive Order. For those departments that do not have cabinet-level representation, the Department of Finance will be responsible for ensuring compliance with the provisions of this Executive Order.

6. The provisions of this Executive Order shall not apply to the legislative and judicial branches of government, nor shall it apply to the constitutional officers of this State. However, I invite these branches of government and the constitutional officers to participate.

7. For the purposes of this order, the University of California and the California State University system are requested to consult with the Department of Finance for the purpose of determining the appropriate level of savings in the current year, to implement the provisions of this Executive Order. Participation, however, should be limited to a level that will not interfere with meeting their educational mission.

8. The Department of Finance is hereby directed to coordinate the implementation of this Executive Order and may issue management memos and grant exemptions from its provisions, as appropriate.

9. This Executive Order will remain in effect until June 30, 2004.