Analysis: States protecting IT budgets from shortfall

State officials have not significantly reduced planned spending on information technology programs, despite a $22 billion budget shortfall in state governments across the country, according to market research and consulting firm Input Inc. of Chantilly, Va.

"States have been aggressive in finding alternative ways of addressing their budget shortfalls rather than through sharp reductions in program budgets," said Suzy Haleen, a state and local analyst at Input. "As a result, many of the capital investments and IT expenditures planned by states have been minimally impacted," she said.

States are using several techniques as alternatives to cutting program budgets, according to Input. These include raising taxes, using so-called rainy day funds and transferring funds to meet their budget deficits.

Shortfall estimates vary. Input puts state budget shortfalls at about $22 billion, while the National Association of State Budget Officers estimates shortfalls totaling $40 billion.

A detailed analysis of budget cuts put in place by the governments of Virginia and Maryland shows some program areas, such as transportation, have remained largely untouched.

"States remain committed to investing in IT as a way of reducing costs long term, but it is more important now than ever for vendors to be aware of the environment the states are in so they can focus and plan their sales strategies effectively," Haleen said.

About the Author

William Welsh is a freelance writer covering IT and defense technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.