The financial turmoil affecting many state and local governments has created a Catch-22 situation for one particular agency segment: human services. Because they are heavily dependent on federal matching grants to help operational and technology development, human services departments in many respects are less-affected by revenue shortfalls.
Despite the overall market contraction expected for 2003, state and local spending on external technology services will grow significantly over the next three years.
<FONT SIZE=2>In light of the state and local </FONT><FONT SIZE=1>government budget shortfalls, the focus on cost containment, enterprise management and revenue forecasting has increased significantly. Moreover, given the depth and speed of these deficits, many new administrations are reassessing the use and scope of the financial management processes in place.</FONT>
<FONT SIZE=2>The elections. The economy. The graying work force. Chief information officer resignations. All these are shaping technology strategies within the public sector and leading to one conclusion: State and local government organizations face a monumental challenge this year.</FONT>
<FONT SIZE=2>It only takes one day to change the nature of government. With the outcome of the elections Nov. 5, there is a new political reality at the federal level: One party now controls the executive office and both houses of Congress.</FONT>
<FONT SIZE=2>Although e-government remains one of the most prominent technology initiatives within the state and local government marketplace, the nature of its projects continues to evolve. Government-to-citizen applications are still politically popular, but government-to-business and government-to-government projects are also emerging as key e-government areas.</FONT>
The state and local government marketplace has been in a dramatic state of flux over the past year. With budget shortfalls forecast in 46 states and a lack of defined movement in homeland security funding, new technology opportunities have leveled off. In many respects, forced cutbacks have exacerbated the problem in specific jurisdictions and created an uneven balance of technology investment v. technology deployment.
State and local government organizations have long had a skeptical view of the need to outsource functions to vendors. Political realities, turf battles and cost constraints have made outsourcing a highly contentious issue.
State and local governments are increasingly facing a human capital management crisis, particularly in technology services. The recent departure of Keith Comstock, chief technology officer of West Virginia, is yet another in a long, steady stream of CIOs that have left the public sector for other opportunities.
Among the traditional seven agency segments within the state and local government market, departments of health and departments of human services are often the largest, most complex entities within the public sector organization.
This year has been an important crossroads for the state and local government marketplace. Red-hot economic activity and overflowing revenue coffers have receded, while electronic government initiatives, though still moving forward, now must accommodate the new priorities and direction brought about by the events of Sept. 11.
The information technology needs of state and local government agencies have changed rapidly, having a direct impact on the vendor community. Major systems integrators and professional services firms have established new competencies to coincide with the dramatic ascent of e-government initiatives.
Public-sector organizations are responding to the tragic events of Sept. 11 by offering an array of services from emergency response and logistical support to medical attention and investigative services.
Although the Health Insurance Portability and Accountability Act (HIPAA) was passed in 1996, the effects of this monumental legislation are only now being felt across the nation.
Funding for e-government has reached an important crossroads. Although e-government is still a very popular political and citizen-focused issue, funding for these projects remains elusive.
With Independence Day just behind us, it's time to reassess some of the processes concerning the most fundamental right of every American: the right to vote.
The federal government exerts a tremendous influence over the business processes, daily operations and technology development within state and local government agencies.
