Governor Schwarzenegger Announces $27 Million In Savings From DGS
Governor Arnold Schwarzenegger announced that he Department of General Services (DGS) has saved the state $27 million on commercial leasing rates through a targeted effort for the renegotiation of the terms on 1,200 of the state’s commercial leases. DGS estimates that its efforts will eventually achieve $80 to $100 million in savings over the life of the leases.
“In these economic times, state government has to run as efficiently as possible to be able to continue providing critical programs and services to the people of California,” said Governor Schwarzenegger. “Today’s announcement means that the state is saving real dollars that can be directed to other vital areas. My Administration will continue to tighten its belt and cut costs just like every other California family and business is doing.”
The Governor has called for a reduction of state spending and issued an executive order last month directing all state departments to develop and submit to the Department of Finance plans to decrease their future spending on contracts and purchases by at least 15 %. The order has also called for a reduction of state spending through eliminating the funding of contracts entered into by state agencies and departments after March 1, 2009 for all goods and services excluding those necessary for public safety.
Governor Schwarzenegger is continuing his efforts to make government more efficient and cost effective through rooting out and eliminating waste, fraud and abuse.