Information technology is a curious artifact in government budgeting and spending. It is deeply embedded in almost everything government does yet gets called out with unique visibility when it comes to itemizing cuts.
The latest evidence of this trend comes from fiscally weary Michigan when the Granholm Administration announced the most recent mid course correction in order to meet the constitutional requirement to keep the budget in balance:
The 23-page executive order provides an agency-by-agency itemization of the reduction package. It lists the programs that will take hits, and how large they will be. And in that respect, information technology is treated as a program (rather than just infrastructure or overhead). The named reductions to IT projects and other tech spend include:
The spending cuts take $2,496,600 out of modernization efforts -- an unwelcome development to be sure. But seen against the $304 million in general fund reductions, IT's share is only eight-tenths of 1% -- compare that to a record (inflation adjusted) 23.5% year over year drop in state revenues. All things being equal, it is probably less than a fair share. But not all things are equal. IT still holds the unique promise for changing the cost structure of service delivery in ways that no other program, overhead or infrastructure can. Perhaps that helps explain why the cuts were held to less than a single percentage.
All of that from a state that is fresh out of options. The announcement included the now familiar recitation that moves were made necessary to eliminate a budget shortfall "caused, in large part, by the massive restructuring in the domestic auto industry." Perhaps that now goes without saying, given that the announcement also came the week that this John Rich single was at Number 12 on the CMT country music chart:
The latest evidence of this trend comes from fiscally weary Michigan when the Granholm Administration announced the most recent mid course correction in order to meet the constitutional requirement to keep the budget in balance:
Executive Order 2009-22, the second issued during the current fiscal year, reduces spending by nearly $350 million, achieving $304 million in the general fund savings. The reductions will reduce services in some areas of government but will allow the state to protect critical functions of state government like education, health care, support for families in crisis, and job creation efforts.
The 23-page executive order provides an agency-by-agency itemization of the reduction package. It lists the programs that will take hits, and how large they will be. And in that respect, information technology is treated as a program (rather than just infrastructure or overhead). The named reductions to IT projects and other tech spend include:
- Agriculture: $89,000
- Attorney General: $6,400
- Civil Rights: $22,500
- Community Health (Health IT Initiative): $1,072,600
- Human Services: $165,000
- Management and Budget: $200,000
- Military and Veterans Affairs: $3,200
- Natural Resources: $2,400
- Department of State: $300
- State Police: $860,000
- Treasury: $75,500
The spending cuts take $2,496,600 out of modernization efforts -- an unwelcome development to be sure. But seen against the $304 million in general fund reductions, IT's share is only eight-tenths of 1% -- compare that to a record (inflation adjusted) 23.5% year over year drop in state revenues. All things being equal, it is probably less than a fair share. But not all things are equal. IT still holds the unique promise for changing the cost structure of service delivery in ways that no other program, overhead or infrastructure can. Perhaps that helps explain why the cuts were held to less than a single percentage.
All of that from a state that is fresh out of options. The announcement included the now familiar recitation that moves were made necessary to eliminate a budget shortfall "caused, in large part, by the massive restructuring in the domestic auto industry." Perhaps that now goes without saying, given that the announcement also came the week that this John Rich single was at Number 12 on the CMT country music chart:
While the boss man takes his bonus paid jets on out of town
DCs bailing out them bankers as the farmers auction ground
Yeah, while there living up on Wall Street in that New York City town
Here in the real world their shuttin Detroit down
DCs bailing out them bankers as the farmers auction ground
Yeah, while there living up on Wall Street in that New York City town
Here in the real world their shuttin Detroit down
I agree that we must now take full advantage of the use of technology especially when revenue is declining so rapidly. Michigan is having the worst economy in my lifetime yet we still need to provide government services to a demanding public. Think about it...people lose their jobs, they cannot pay their bills, they may lose their homes and the recovery is still a couple of years away. People in these circumstances will lean on government to help.
The problem is that government's resources are also declining and the tough priority decisions are now more important than ever before. How do we do more with less...wait...how do we do less with less. This is the reality and without technology we fail miserably. We must keep our eye on the ball and keep strong technology solutions in the hands of the few providers left. Having visionary leadership like we do here in Oakland County, MI under our County Exec will help guide us through this fiscal nightmare. Technology will enable business process change which will enable services to still be provided. These are tough times especially in Michigan!