Granholm merges 2 agencies to cut costs

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In a move to cut costs and eliminate state inefficiencies, Michigan’s Department of Natural Resources and Department of Environmental Quality could merge next year, but state officials still are unsure how the merge could affect services.

Gov. Jennifer Granholm signed an executive order Thursday hoping to save the state $1 million or more per year by combining natural resource and environmental regulation under control of the new Department of Natural Resources and Environment, said Megan Brown, a spokeswoman for Granholm.

“Experience has shown us that conserving natural resources and protecting the environment go hand-in-hand,” Granholm said in a statement last week.

Officials said the merger will cause some jobs to be eliminated, but it is unknown how many layoffs would be necessary. Duplicate functions within the departments also would be combined.

The order will take effect Jan. 17 unless the House or Senate rejects it.

The two agencies formerly existed as one department until 1995, when they were separated under former Gov. John Engler. Brown said recombining them is part of Granholm’s effort to “streamline” state government.

The departments will remain as they are until a new director is named in January, Brown said.

The new department would regulate protection, conservation and management of Michigan’s natural resources. Environmental groups, including the Michigan Environmental Council, have said they support the merger.

But James Clift, policy director for the Michigan Environmental Council, said he was concerned about a shrinking budget in the department.

“Because of budget shortfalls, both of these departments have less money,” he said. “There is nothing about this recombination that can correct that. They are going to need more resources.”

Currently, the DEQ regulates permits for East Lansing’s water and sanitary sewer utilities, water treatment plants and water distribution, said Dave Smith, environmental specialist for the city of East Lansing, in an e-mail.

State Rep. Arlan Meekhof, R-Olive Township, said the merger might reduce processing issues for some these permits.

“It instructs the new director of the new department to continue efforts to reduce the time in processing environmental permits,” Meekhof said. “And also, improving customer service for those who interact with the department.”

The order gives Granholm the power to appoint the director of the new agency, as well as the director of the Michigan Department of Agriculture.

Previously, the directors were appointed by citizen-based commissions, which kept appointments bipartisan, said state Rep. Mark Meadows, D-East Lansing.

“It took the protection of the environment out of politics,” Meadows said.

Granholm appointed Bruce Rasher, director of operations at real estate firm CB Richard Ellis, to oversee the transition until a new director is named.

Combining the two departments is part of Granholm’s across-the-board review of state agencies, which already has eliminated three state departments and more than 150 state boards and commissions.

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