Literature

elefante

smart_money.pdf

Home >Information Systems homework help >Literature

GT05_20.indd 20GT05_20.indd 20 4/7/09 9:37:11 AM4/7/09 9:37:11 AM

Designer Creative Dir.

Editorial Prepress

Other OK to go

100 Blue Ravine Road Folsom, CA 95630

916-932-1300

PAGE

Designer Creative Dir. Designer Creative Dir.

�

��

Editorial Prepress Editorial Prepress

Other OK to go Other OK to go

of stimulus dollars heading for state coffers, CIOs are urging the federal government to loosen funding rules they say promote poor IT system design and ineffi cient use of precious funds.

Shortly after last November’s election, representatives from the National Association of State Chief Information Offi cers (NASCIO) met with President Barack Obama’s transition team about modifying rules for spending money given to states for operating federal health care, transportation, social services and public safety programs. NASCIO contends that cost-allocation guidelines and technology requirements tied to these funds often clash with state data-sharing and enterprise architecture initiatives.

GT05_20.indd 21GT05_20.indd 21 4/7/09 9:50:53 AM4/7/09 9:50:53 AM

Designer Creative Dir.

Editorial Prepress

Other OK to go

100 Blue Ravine Road Folsom, CA 95630

916-932-1300

PAGE

Designer Creative Dir. Designer Creative Dir.

�

��

Editorial Prepress Editorial Prepress

Other OK to go Other OK to go

“Th ose were good rules 20 years ago because they made sense in a highly distrib- uted computing environment. But today, they perpetuate silos,” said NASCIO Presi- dent Gopal Khanna, the CIO of Minnesota. “As new funding comes in and IT spending is being planned at the state and local level, my hope is that the federal government would be aware of the reality and not perpetu- ate the silos. It defeats the whole purpose of enterprise architecture.”

Before passage of the stimulus package, NASCIO projected that the U.S. government would give states more than $300 billion in 2009 to administer and deliver federal pro- grams. A big chunk of that money will go toward computer hardware and soft ware that’s purchased and maintained by state agencies. But state CIOs say federal account- ing rules and restrictions on commingling funds for one program with those for another lead to stand-alone information systems that

they are counterintuitive to this whole idea of interoperability.”

But big changes may not come as fast as state CIOs would like. NASCIO Executive Director Doug Robinson said major reforms won’t happen during the initial round of stimulus activity because changing the rules now would slow the fl ow of stimulus dollars into the nation’s staggering economy.

“Signifi cant changes are unlikely at this point because of the speed at which this is moving,” Robinson said shortly aft er attend- ing a March 12 stimulus implementation con- ference hosted by Vice President Joe Biden. “Th e formula grant funding — and some of the other grants — is being channeled through the existing programs, so they don’t have to create a lot of new funding channels.”

At press time, states already were receiv- ing billions of dollars in formula grants for health and human ser- vices, education and transporta- tion. But offi cials were waiting for the federal Offi ce of Manage-

can’t communicate with one another — even when the systems are used to deliver closely related programs. Furthermore, inconsistent technology requirements built into federal programs frustrate state eff orts to create shared services and enterprise IT structures.

With the prospect of even more billions fl owing into state governments thanks to the stimulus bill, overhauling federal funding rules takes on even greater urgency, Khanna said.

“It is one of the areas that has caused a lot of waste in government. From a purely business perspective on behalf of the citi- zens, it makes sense to leverage the money to do more,” he said. “When you have dupli- cate architectures created at the state level, money is being wasted. Second, when you con- struct diff erent architectures and islands of optimization,

INCLUDED IN THE stimulus package is the revival of the Edward Byrne Memorial State and Local Law Enforcement Assistance Grant Program (Byrne Grants) and the Community Oriented Policing Services (COPS) Grant Program, both of which were elimi- nated during the previous administration.

Local law enforcement agencies that receive part of the $2 billion in Byrne Grants must decide whether to spend it on planning, evaluation, technology or other programs. COPS grants ($1 billion) can be spent on hiring more offi cers, training, technology and weapons.

Making the spending decisions diffi cult and critical is the fact that most local governments have little hope of continued funding after the grant process ends in three years. That makes hiring new offi cers diffi cult. “The good news is they are not going to require a local match for some of the offi cer funding,” said Richard Myers, Colorado Springs police chief.

Investing in new technologies that help police work smarter may be a viable alternative to hiring new offi cers. — JIM McKAY, JUSTICE AND PUBLIC SAFETY EDITOR

M A

Y_ 0

“As new funding comes in and IT spending is being planned at the state and local level, my hope is that the federal government would be aware of the reality and not perpetuate the silos.” Gopal Khanna, president, NASCIO; and CIO, Minnesota

The federal govern- ment will distribute $7.2 billion for broadband development.

GT05_20.indd 22GT05_20.indd 22 4/13/09 11:43:59 AM4/13/09 11:43:59 AM

Designer Creative Dir.

Editorial Prepress

Other OK to go

100 Blue Ravine Road Folsom, CA 95630

916-932-1300

PAGE

Designer Creative Dir. Designer Creative Dir.

�

��

Editorial Prepress Editorial Prepress

Other OK to go Other OK to go

M A

Y_ 0

ment and Budget (OMB) to issue rules for competitive grants, as well as for tracking and reporting how stimulus money is spent. Rob- inson said the OMB could start to address the funding-restriction problem by encouraging stimulus fund recipients to coordinate with their state CIO when using the money for technology upgrades.

Th e long-term outlook for funding reform is more encouraging. Th e Obama administra- tion has asked NASCIO and others to provide ideas for improving the process, Robinson said. “We’re going to have to get through this fi rst phase of recovery fi rst, but I think they

are at least open to hearing our concerns about cost-allocation rules and other federal regula- tions that either discourage or present a clear barrier to consolidation and further shared services at the state level.”

Billions of dollars in stimulus spending could ultimately ratchet up pressure for funding changes, Robinson added, by bringing more attention to the issue.

“Th e magnitude of dealing with the recov- ery funds will clearly demonstrate the chal- lenges in terms of achieving an enterprise view, because right now these dollars are going

to fl ow to programmatic lines of business, and there’s going to have to be some horizontal coordination,” he said.

State and local CIOs may have an ally in newly appointed federal CIO Vivek Kundra. Before his appointment to the new federal government post in March, Kundra was chief technology offi cer of Washington, D.C., where he dealt with federal funding rules fi rsthand.

LOCAL GOVERNMENTS seeking a piece of the $7.2 billion in broadband stimulus included in the American Recovery and Reinvestment Act should watch three upcoming funding windows. The fi rst opportunity to submit applications runs from April to June 2009. That opening will feature stiff competition from govern- ments with previously drafted municipal broadband plans that got shelved after the municipal-Wi-Fi craze imploded, said Craig Settles, a municipal broadband analyst.

“The thinking these communities have done is the kind of thinking many others need to do before the federal government hands them a check,” Settles said.

Governments without plans should study governments that do, develop their own business plans and then apply for stimulus money during application windows that occur from October to December 2009 and April to June 2010, he recommended.

The U.S. Department of Commerce’s National Telecommunications and Information Administration is disbursing $4.7 billion of the broadband stimulus. The U.S. Department of the Interior’s Rural Utilities Service will distribute the remaining $2.5 billion. — ANDY OPSAHL, FEATURES EDITOR

THOUGH MOST of the $27.5 billion allocated to roadways will be awarded to “shovel-ready” projects that are already in the planning stages — like pouring asphalt and fi xing bridges — some communities are investing in intelligent transportation systems (ITS) that mitigate traffi c problems. For example, Bucks County, Pa., is spending $56 million to improve highway traffi c by installing changeable message boards and pavement sensors. Philadelphia and Flint, Mich., also are funding ITS projects, while Charlotte, N.C., has approved $4 million to install cameras for traffi c synchronization.

High-speed rail received an unexpected $8 billion boost because of Obama’s enthusiasm for the concept. The new mode of transportation would shuttle passengers along major metropolitan corridors at 200 mph. Stiff competition is expected for the money, as rail lines have been proposed in several populous states, including California, Texas, New York and Illinois. The U.S. Department of Transportation could release guidance for applying for grants as soon as June.

Another $8 billion is allotted for mass transit, which includes commuter rail, light rail and buses. Though much of that money is going toward nuts-and-bolts infrastruc- ture — refurbishing rail lines, passenger cars and train stations — Maryland; Madison, Wis.; Louisville, Ky.; and others are going high tech by investing in hybrid-fueled buses. — MATT WILLIAMS, ASSISTANT EDITOR

C O

N T

IN U

E D

O N

P A

G E

GT05_20.indd 24GT05_20.indd 24 4/9/09 1:54:15 PM4/9/09 1:54:15 PM

Designer Creative Dir.

Editorial Prepress

Other OK to go

100 Blue Ravine Road Folsom, CA 95630

916-932-1300

PAGE

Designer Creative Dir. Designer Creative Dir.

�

��

Editorial Prepress Editorial Prepress

Other OK to go Other OK to go

ways that will necessarily involve state government because the delivery of so many federal programs … involves federal agen- cies sending money down to the states and then the states in turn working with local governments,”

said Chenok, who is senior vice presi- dent of Pragmatics, a Virginia-based soft - ware engineering and systems integration company. “So imagine a federal cloud that takes advantage of this to deliver Medic- aid, transportation services or employment services. Th at type of a cloud would abso- lutely have to interface with state comput- ing environments in new, interesting and exciting ways.”

He noted the federal government already has signed a contract to move its usa.gov Web portal to a cloud computing plat- form, signaling a strong commitment to the concept. Chenok added that the Obama administration was looking for successful models in state and local government that use cloud computing, data integration and other technologies to improve government performance.

Khanna said the federal CIO appointment is encouraging.

“Certainly Vivek brings an enor- mous amount of understanding and knowledge about the barriers in the current fl ow of federal funds to state governments,” Khanna said. “So he’s in a unique position to bring that understanding to OMB and to this policy conversation. Even though the federal CIO position is focused on the federal agenda, I think his understanding will be of enormous value to the country.”

Changes also could be driven by IT upgrades implemented by federal agen- cies, according to Dan Chenok, who led the Obama transition team’s subcommit- tee on technology, innovation and govern- ment. Speaking in March at the Center for Digital Government’s Beyond the Beltway Conference, Chenok said the administration is interested in using new technologies that could reshape its relationships with states and localities.

“During the transition, we talked about modernizing the federal environment in

M A

Y_ 0

THE STIMULUS BILL provides $6.3 billion in funding for green initia- tives in state and local governments. Those funds are divided into two areas:

$3.2 billion is allotted for Energy Effi ciency and Conservation Block Grants, which can be used to reduce fossil fuel emissions, decrease total energy con- sumption and improve energy effi ciency in the transportation, building or other energy-consuming sectors.

$3.1 billion is for the State Energy Program, which provides grants to states to address energy priorities and fund emerging renewable-energy and energy-effi ciency technologies.

Jennifer Bradley, a senior research associate for the Brookings Institution’s Metropolitan Policy Program, said governments that already have set goals for energy effi ciency will have the easiest

time spending the stimulus money quickly. Those that aren’t as prepared can start with low-hanging fruit like installing LED bulbs in traffi c lights, she said.

States must be aware that they have a hand in helping localities meet the quick timeline. “A lot of the money will go through states, so the

question will be how quickly states will disburse the money and let the cities have their fair share,” Bradley said.

She also said the stimulus package provides an opportunity for organized governments to act in a regional way to get the most from the funding. “We encourage places to look out across borders and develop metropolitanwide plans for spending the money,” Bradley said, adding that this is an opportunity for municipalities to work together and focus on transformative investments like regional transportation programs. — ELAINE RUNDLE, STAFF WRITER

The economic stimulus package includes more than $20 million to help hospitals and physicians build out their IT infrastructure and with IT adoption.

AMONG THE HEALTH IT provisions in the American Recovery and Reinvestment Act, by far the biggest outlays are the electronic health record (EHR) adoption incentives for Medicare and Medicaid providers. While this represents an opportunity for government medical institutions, the time frames prescribed by the act will challenge some providers.

With fi nal payments distributed in fi scal 2016, providers and hospitals that have not already begun the implementation process will be hard-pressed to get the biggest benefi t from the incentives.

“This is a matter of hurry up and wait,” said Marc Holland, program director for health care provider research with IDC’s Health Industry Insights. To secure stimu- lus funds, providers and hospitals must shop for an EHR system, buy it, install it and demonstrate “meaningful use.” Shopping for and planning an EHR installation can take several months for a small provider and at least 12-24 months for hospitals, said Holland.

However, it’s worth it for providers to adopt even if they can’t do so in time for the bigger reimbursement amounts because nonadopters will see Medicare payment reductions starting in 2015. — EMILY MONTANDON, ASSOCIATE EDITOR

C O N T I N U E D F R O M P A G E 24

GT05_20.indd 48GT05_20.indd 48 4/13/09 11:46:18 AM4/13/09 11:46:18 AM

Designer Creative Dir.

Editorial Prepress

Other OK to go

100 Blue Ravine Road Folsom, CA 95630

916-932-1300

PAGE

Designer Creative Dir. Designer Creative Dir.

�

��

Editorial Prepress Editorial Prepress

Other OK to go Other OK to go