Report: Government information technology spending will grow, focus on human services

Published August 29, 2007 4:00am ET



State and local government spending on information technology will grow a total of about 5 percent over the next five years, focusing on improving social services, according to a recent report.

Falls Church-based Government Insights projected how the dollars will be spent in a recent report, “U.S. State and Local Government IT Spending Guide 2006-2011.”

The report projected spending in D.C. and Virginia will grow at a rate of 5.2 percent over the time frame, and by 5 percent in Maryland. Virginia will spend $739.2 million per year by 2011, while Maryland will spend $532.6 million annually. D.C. will spend $76.7 million, according to the report.

Nationally, Government Insights predicted a similar growth rate of about 5 percent.

“D.C., Maryland and Virginia tend to be a little ahead of the curve from an IT standpoint, but spending-wise you don’t necessarily see that reflected,” said Shawn McCarthy, director of government vendor programs for Government Insights.

McCarthy also said the states can often do more by spending less because newer hardware can be cheaper, or because an early investment led to cost savings down the line.

The largest area of spending for the D.C. area will be in the area of social services, as it is

predicted to be nationally.

Other major focuses include IT spending related to courts and crimes, as well as emergency and fire response.

When developing their forecast and statistical models, researchers considered such factors as state budgets, proposed information technology plans, population, and other data, McCarthy said.

The Virginia state government has a roughly $860 million application portfolio for IT, which includes current and future projects, according to Aneesh Chopra, the state’s secretary of technology.

The state also has a $270 million, 10-year public private partnership with Northrop Grumman, which began in 2006.

Chopra said the state’s major technology focuses include public safety initiatives, such as its interoperable statewide radio system.

Virginia is also working on modernizing its administrative systems and finding new uses for IT, such as the proposed Turbo Vet project, which would improve services for veterans and their families.

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