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Tech Spending In The States
by Chloe Albanesius
As federal lawmakers debate fiscal 2006 spending, state lawmakers also have been hard at work on budget bills, with some states like New Jersey having more luck than the temporarily deadlocked Minnesota legislature.
Minnesota's government closed July 1 after legislators were unable to come to a budget agreement, but senators agreed Saturday to move a bill, H.F. 111, that "allows affected employees to be called back to work," Democratic state Sen. Ann Rest said in a floor statement. Early Saturday, Gov. Tim Pawlenty signed the emergency legislation that reopens the government until lawmakers reconvene Wednesday.
"Now we are ready to get back to business in Minnesota, to educate our children, to control government spending, to control government growth, and to grow jobs," Pawlenty, a Republican, said in a statement. Prior to the shutdown, he accused Democrats of offering a budget bill that is a "deliberate stall, a non-starter."
In budget recommendations earlier this year, Pawlenty called for $20 million for "centers of excellence" in manufacturing technology, science and engineering, and information technology. He also called for upgrades to the state's automated fingerprint information system. The budget would reduce technology infrastructure spending for the Higher Education Services Office by $1 million.
Is Jersey Slacking On Tech? Fuhgettaboutit!
In New Jersey, acting Gov. James Codey last week signed a $27.9 billion state budget that includes funds for online sales tax collection and increased technologies for law enforcement.
"With this budget, the era of spending like there's no tomorrow ends right now," Codey, a Democrat, said in a statement. "Gimmicks and speculative budgeting are banished to the past. Today New Jersey begins a new course of honest budgeting, fiscal responsibility and spending discipline."
Codey, who assumed the governorship after James McGreevey resigned last year, has announced he will not run for re-election this year and thus was in the enviable position of being able to push his budget priorities without fear of retribution at the polls.
One of those priorities is a revamp of the sales-tax structure. Plans call for a state entity, possibly the Sales Tax Review Commission, to review changes to the state's revenue base since 1966. The review is necessary because "the rapid absorption of new technology in society has ... given rise to an inequitable and inconsistent application of the sales tax," according to Codey's budget recommendations.
Changes to the system -- which could include taxes on items like shipping and handling, limousine services, charter airplane services, tanning, massages and landscaping -- are expected to generate $275 million in new revenue during fiscal 2006, he said.
The final budget, however, calls for the state to adopt the Streamlined Sales Tax Project (SSTP), the multi-state plan that would allow states to tax online sales. The plan could generate $40 million in state revenue during fiscal 2006, according to projections.
On the security front, the budget allocates $1.1 million for digital radio technology and ruggedized personal computers for the Corrections Department. The Law and Public Safety Department, meanwhile, will provide $1.3 million to help with a DNA backlog, $600,000 for computer-aided dispatch maintenance, $300,000 for the department's program on Internet crimes against children, and $36.6 million for state homeland security grants.
The Education Department will receive $9.75 million for educational technology, less than the $13.7 million requested by Codey. And the Commission on Science and Technology will receive $668,000, while the New Jersey Institute of Technology will get about $50 million.
Alaska, Ohio Cut Tech Costs
Thousands of miles to the west, Alaska Gov. Frank Murkowski on June 28 signed a budget that allocates about $35 million for the state's Enterprise Technology Services, which is intended to serve state agencies via information technology.
The budget also calls for $1.1 million for Agriculture Department information technology and $546,000 for assistive technology. And it calls on the Alaska Correctional Industries Commission to use teleconferencing for its quarterly board meetings in order to curtail travel costs. The Corrections Department will receive approximately $1.5 million for information technology management information systems.
"This budget represents a continuation of the commitment I made to Alaskans nearly three years ago to develop our resources, to develop our state, and to build a better future for the next generation of Alaskans," Murkowski said in a statement.
In Ohio, embattled Gov. Bob Taft last week signed a budget that will merge the state's Office of Criminal Justice Services into its Public Safety Department. Ohio's SchoolNET Commission and Educational Telecommunications Network also will merge to form ETech Ohio in an effort to "expand technology-based learning opportunities for students," the Republican governor said in his bill-signing message.
Taft vetoed a portion of the budget that would have further consolidated state agencies. He said the plan was "not supported by any financial resources" but pledged to "continue to seek opportunities within state government for savings through reorganization."
He also struck down efforts to distribute homeland security funds on a regional basis unless required by federal law. "Using a regional approach for specialty skills or large equipment purchases like bomb robots or decontamination trailers maximizes grant dollars and is a better use of funds," Taft said. "There is no practical reason to have a bomb, hazardous-materials or search-and-rescue team in every county."
In Pennsylvania, Gov. Edward Rendell on Thursday signed a $24 billion budget that allocates $3 million to develop advanced technology skills for workers at institutes of higher education and $10 million in financial aid for working adults to take part-time classes.
And Rhode Island Gov. Donald Carcieri on July 1 signed a $6.35 billion budget, the first time the state has completed a budget on time since 2002.
Budget Challenges Remain
Overall, while states have emerged from the budget crises of recent years, challenges still remain, according to a fiscal survey of states released Thursday by the National Governors Association (NGA).
Revenues surpassed budget projections in 42 states during fiscal 2005, while three others eventually met their goals, according to the report. Only five states were below projections. A main issue hampering financial success is healthcare costs, NGA found.
"The continued rise in healthcare costs, spurred on by Medicaid, continues to throw a wrench in the recovery of states to emerge from the recent fiscal crisis," NGA Executive Director Raymond Scheppach said in a statement. "Medicaid continues to be the major driver of state spending, and it will continue to cut into other state budget priorities like education and economic development."
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