ShareOkla gov's plan to consolidate IT struggling
Sean MurphyKey pieces of Republican Gov. Mary Fallin's ambitious proposal to consolidate the state's fractured information technology systems have come off the rails in the Legislature, likely leading to deeper cuts to state agency budgets.
Information technology systems consolidation is a central element of Fallin's plan to save the state hundreds of millions of dollars by streamlining government functions.
Facing a $500 million hole in the budget for the upcoming fiscal year, the governor proposed an immediate freeze on state spending on information technology, or IT, services and a $100 million bond issue to help pay for IT consolidation _ neither of which have gained any traction in the GOP-controlled Legislature. A bill she's endorsed to consolidate all of the state's IT services under one coordinated system remains alive, but legislative leaders acknowledge savings from that proposal will be minimal next year.
"Getting the IT proposal passed and signed into law is very important to me in the budget negotiations," Fallin told The Associated Press. "If we don't pass the IT freeze and consolidation, that inaction will have a serious effect on balancing our budget, and will have an effect on our critical-mission agencies ... to where they might have to take bigger cuts than have been proposed."
The fact that Fallin's proposals haven't been wholeheartedly endorsed by her GOP colleagues in the House and Senate has developed into a significant hitch in budget negotiations, and show there remain some differences among Republicans, even though they control the House, Senate and governor's office for the first time in state history.
With 30,000 desktop computers, about 1,200 information technology employees, and hundreds of different software and computer programs, technology experts predict the state of Oklahoma could save hundreds of millions of dollars by consolidating its archaic and disjointed IT services under one system within the Office of State Finance.
"It's not unrealistic to get 30 to 40 percent cost reductions overall, if you're able to do it well," said Robert Zmud, the Michael F. Price Chair in Management Information Systems at the University of Oklahoma. "There are a number of advantages, but cost reduction is one of the major benefits."
Zmud, who helped with a similar effort in Florida in the 1990s, said developing common systems for purchasing, payroll, accounting and personnel can reap huge savings for the state, along with shedding excess personnel.
"I think that what the state is trying to do is very appropriate and very important, and in the long run has a chance to save the states lots of money and also improve services," Zmud said. "It's not an easy trip to take, but you have to start somewhere. And Oklahoma should have done it some time ago."
The implications on the state budget are significant. In her executive budget, Fallin was able to limit cuts to critical areas of state government like education, health and human services, and public safety to around 3 percent. But that budget included nearly $200 million in savings from her IT plan. Without that plan passing, the cuts to all state agencies are expected to be much deeper.
Alex Pettit, Oklahoma's new chief information officer and Fallin's cabinet secretary for information technology, would oversee the consolidated IT systems. Pettit acknowledges the delay in the IT spending freeze and the lack of the technology bond issue will mean fewer savings up front, but he said the long term savings of the consolidation still could be significant.
"Much of the savings is projected to come from the elimination of many duplicate hardware and software systems, networks and IT services, particularly in the first year," Pettit said. "Savings will also be realized in purchasing through normalization of contracts, reducing multiple individual agency licenses to statewide licensing. In future years, staff reductions will also contribute to ongoing cost savings."
The House author carrying Fallin's IT consolidation plan, Rep. David Derby, said he's confident the proposal will pass, but he admits the roughly $192 million in savings Fallin projected won't be realized in the upcoming fiscal year.
"We're probably looking at $42 million in the first year, with the ultimate goal of $363 million by year five," said Derby, R-Owasso. "It would be a step-by-step process."
The bill currently is in a joint House and Senate conference committee, where lawmakers typically send legislation to hammer out the final details. Fallin's proposal to consolidate several state agencies also has been sent to conference.
"We shouldn't operate an 8-track bureaucracy in an iPod world," Fallin said. "As conservatives, we campaigned on making government smarter, smaller and more efficient.
"These pieces of legislation are critical to fulfilling the promise we made to voters, and the Legislature needs to deliver on that promise."