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    State and Local Government Gains

    Economic Stimulus Program Guide


    By Barbara DePompa

    With an estimated $50 billion in stimulus funding that will flow directly to state and local governments, there is significant potential for technology-related spending, although industry observers maintain there's work to be done as states and localities prepare to efficiently and transparently allocate funds for new initiatives.

    Early funding initiatives related to transportation and education are already having a direct impact on state and local government budgets, according to Deniece Peterson, principal analyst for INPUT in Reston, Va. “As monies are doled out for transportation improvements, for example, that in turn, frees other state and local funding for technology-related initiatives,” she explained.

    Meanwhile, in the push to reduce paper-based processes, such as claims processing, from state and local governments, there is an expanded requirement for more and better data warehousing and analytics, observers said. “There’s a much higher probability that government systems will be impacted by fraud, for example, if they don’t incorporate a proper data warehouse for state and local governmental programs,” said Nick Short, director of federal systems engineering for SAP Business Objects, at a recent Economic Stimulus conference in Falls Church, Va.

    As the states strive to modernize and eliminate paper, there’s an enormous opportunity, he continued, to ensure money is appropriated properly to constituents using business intelligence, data warehousing and other analytics.

    Mary Davie, GSA’s assistant commissioner, Office Assisted Acquisition Services, sees an increase in Requests for Collaboration (RFCs) from state and local governments. “The state of Virginia did just that when it needed to update physics in high schools there,” she said.

    The state government posted an RFC to develop a new physics curriculum, receiving applications from across the nation. While no immediate funding was involved in this project, Davie suggested that the RFC model succeeded in dramatically accelerating a much needed update in the state’s high school physics program, which will now be implemented in Virginia schools within a year, she said.

    Finally, technology will play a key role in improving a host of online services for state and local government constituents. Some states will incorporate technological solutions to aid constituents in registering their cars online, rather than in person at a motor vehicle administration office.  By all accounts, the ARRA law will assist state and local governments in upgrading both their emergency response communications and online services, allowing constituents to check on events, upcoming county council meetings and other local announcements via government-run web sites.