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Budget Blowback

Some budget processes act as a technology straitjacket, discouraging innovation rather than promoting it

Thomas R. Davies
From Governing.com

The heart of government decision making, as we all know, is the budget process. Policy goals are established, strategies are resourced and performance expectations are set. This is all well and good. When it comes to information technology, however, some budgeting practices stand in the way of IT and its potential to help improve government performance

One big liability stems from the widespread use of incremental budgeting. This budgeting practice puts requests for new technology resources under a microscope, imposing rigorous business-case standards to justify an investment. Meanwhile, relatively little scrutiny is given to expenses lodged in base technology operations. In effect, the base, which easily exceeds 70 percent of the typical technology budget, gets what amounts to a free pass.

Please note: The views expressed in this article are not necessarily those of Manatron or its employees. This article is meant for educational purposes only.

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