Governor Schweitzer Announces Over $3.4 million in State Lease Savings

Press Release

Governor Brian Schweitzer announced today over $3.4 million in savings through adjustments in lease rates for commercial space that the state rents.

"Under this administration, the State will no longer be paying above-market rates for its office space. We are challenging every State expense, including the cost of our real estate" said Governor Schweitzer.

As part of his comprehensive cost saving efforts, Schweitzer notified commercial property owners in February that the State would require a lower rate to enable the lease to be renewed upon its expiration.

As of April 22, the Governor's Office has renegotiated 66 leases that were targeted for renegotiation, creating a total savings of $3.4 million over the term of the new agreements. The average square foot per year price has been lowered from $14.16 to $11.90. The average total lease savings is 14%.

"I was elected and re-elected on a pledge to run government like a business. This is what a business does, you buy for less if at all possible," said Schweitzer. "Every dollar saved matters."

In addition to announcing on-going cost saving measures Governor Schweitzer is encouraging citizens to vote on the final four cost savings ideas for the Montana Accountability Partnership contest at www.governor.mt.gov.

State savings already announced by Governor Schweitzer:

* $17,000 in savings from Governor and Lt. Governor salary decrease.

* $6 million in savings from cancelled building projects across the state.

* $18 million cancelling the new unemployment insurance (UI) contribution computer system.

* $4.5 million cancelling renovations of the unused Receiving Hospital Building on the Montana State Hospital Campus.

* $2 million in savings by state government by suspending some wildfire-related equipment purchases and fuels reduction projects in 2010.

* $600,000 not bailing out Swank Enterprises' clean up liabilities.

* $380,000 over the biennium with the elimination of the RDO positions in Commerce.

* $350,000 reducing out-of-state travel by 35 percent.

* $131,000 in savings from Department of Revenue printing fewer tax booklets.

* $119,000 in estimated savings by DNRC using video conferencing equipment lieu of travel.

* $20,000 in estimated saving by not printing a state phone directory. Employees and the public will be able to use the directory online at mt.gov.

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