As part of a larger, continuing effort to cut bureaucratic costs and operate state government more cost effectively, Governor Jon S. Corzine today shredded the first of more than 1,000 state-issued credit cards used by state employees to purchase motor fuel at commercial gas stations – a move that will yield significant savings by steering purchases to more economically priced, state-operated stations around New Jersey.

“One of the keys to keeping the state on sound financial footing in this unprecedented national economic climate is to continue to scour the budget and find every possible savings,” Governor Corzine said. “These gas cards have been used for convenience, but the cost of this convenience is more than New Jersey can afford.”

The gas card recall is one of several initiatives designed to achieve a total of $25 million in recurring budgetary savings through smarter and more unified procurement practices. Cross agency teams representing multiple departments are evaluating how to combine purchasing and more efficiently share a wide range of supplies, office and warehouse space, energy and other commodities to achieve savings.  The state’s motor pool is part of this focus.

State employees who previously used the commercial credit cards will now be required to use the 72 state filling stations located around New Jersey. The change will save an estimated 77 cents per gallon pumped. With 308,000 gallons purchased with the credit cards last year, the savings would translate to about $240,000.

The fuel credit cards issued to about 1,100 employees of state departments and agencies were discontinued this month.  The use of fueling sites will allow the state to realize the bulk-pricing discounts that they provide and to eliminate surcharges that agencies pay for purchase of retail fuel.  The current bulk rate for fuel is about $1.23 per gallon, which is 77 cents less than the flat rate of $2 a gallon charged by the motor pool for the commercial credit cards.

The credit cards are being eliminated for about 90 percent of the employees who had them.  Those employees will now be required to fill up at state stations, or seek reimbursement if they pay out of pocket for their fuel. Commercial cards will be reserved for out-of-state travel and emergencies.

The elimination of state-issued gas cards comes on the heels of Governor Corzine’s Tuesday announcement of $3.6 billion in budget cuts, cost savings, and other budget-balancing actions necessary due to declining state revenues in the wake of the national recession. Governor Corzine said the administration would continue to pursue numerous other cost-cutting measures to help bridge the $3.6 billion gap in the current state budget.

(YWN Desk – NYC)