Understanding the State of State-Level IT

The National Association of State Chief Information Officers (NASCIO) annual member survey aimed to get a picture of what is currently happening in IT implementation at the state level. It focused on how states are funding their IT work and how they are implementing key technologies.

Show Me the Money

The survey found that state CIO offices have a median budget of $132 million, with high levels of federal funding resulting from the Coronavirus Aid, Relief and Economic Security Act, the American Rescue Plan, and the Infrastructure Investment and Jobs Act. But with the level of modernization needed to meet citizen expectations of digital government, that frequently is not enough.

States are increasingly moving to a "chargeback" model where IT funding comes from the business unit where it is used. For example, the Human Resources Department would be responsible for paying for the licenses and development costs of their HR information system, rather than that being seen as an overhead expense funded out of IT. This model allows CIOs to use more of their budget for large-scale IT modernization projects that stretch over many years and impact multiple departments. Continue reading