Budget Constraints Will Mean Less 'E' In E-Government

Government IT could have a much different look in five years, as the "E" in E-government disappears and technology becomes an integrated part of government services. Budget constraints will limit how government will address E-government in the coming year. "The 'E' in E-government will be downsized, as reflected in the downsizing of government budgets," says Carol Kelly, VP for government strategies at IT advisory firm Meta Group, which sponsored a teleconference Wednesday on public-sector technology trends.

Lack of funds, especially among states, will force lawmakers to abandon time-honored appropriation practices and adopt those that allow cross-agency use of technology. "The shortfall in government revenues has the silver lining of moving government policymakers and legislatures to funding models that reflect technology advances," says Kelly, who sees greater use of off-the-shelf software and much less customization.

Amy Santinello, a Meta research analyst for government strategies, says governments will accelerate use of analytical and business-intelligence tools this year, initially focusing on savings and cost containment, such as reducing fraud in programs such as Medicaid and workers' compensation. Eventually, she says, the knowledge gained by using these tools will help improve applications aimed at serving citizens.

But major changes will occur once the budget crises are resolved. One change will be the creation of business-relation managers, IT executives who are as conversant in the dialect of technology as they are in government programs, Santinello says. Today, most liaisons between the IT department and the agencies they serve are technicians. "By 2006-07, BRMs will evolve from unit-level IT account managers to the executive level, with 55% of jurisdictions using this role in the development of program policy as well as strategic and tactical planning," she says.

Governments already are seeing a change in their culture, propelled by homeland security needs. "Homeland security initiatives will accelerate cross-jurisdictional collaboration efforts among federal, state, and local governments," Santinello says. "Initial implementations will focus first on public health and safety. These efforts will form the basis for collaboration and information sharing across government agencies. The leadership provided in the creation and operation of the Department of Homeland Security will pave the way for broader cross-jurisdictional initiatives."

Because of budget constraints, the transformation of IT in government is being slowed. In the coming year, governments will focus on providing citizens with the basics: food, housing, and education. Instead of developing new E-government systems, government will rationalize and improve existing ones as it develops an enterprise architecture for the future. "The focus will be on rationalizing and improving existing transactions--and their ease of use--across each jurisdiction," Santinello says. "By 2006-07, data sharing, ERP investments, and consolidation rationalization will provide a foundation for reinvigorating E-government service offerings. The refacing of E-government will allow time for establishing the foundation."