Funding Rules Force Wasteful Government Technology Spending, State CIOs Say

With billions 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 inefficient use of precious funds. Shortly after last November's election, representatives from the National Association of State Chief Information Officers (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.