Lexington, KY, Wednesday, September 16, 2026 – The National Association of State Chief Information Officers (NASCIO) today released a joint research report conducted with Forrester titled State Government IT Investment Management: 2026 State CIO Insights and Recommendations. The publication finds that modernization success depends less on funding models and more on how CIOs manage competing priorities.
Drawing on the 2026 State CIO Survey and interviews with state CIOs, the report identifies five common tensions shaping modernization efforts, including balancing statewide priorities with agency needs, maintaining predictable budgets while adapting to emerging technology and building consensus while knowing when to exercise authority. The research finds that CIOs making meaningful progress are building trust with agencies, connecting technology investments to mission outcomes, strengthening investment governance and finding sustainable ways to fund innovation.
“State CIOs are expected to modernize technology, strengthen cybersecurity and prepare for emerging technologies while operating within structures designed for stability and accountability. This research demonstrates that success often comes not from finding the perfect funding model, but from balancing competing priorities and creating sustainable pathways for change,” said Eric Sweden, Director Enterprise Strategy, Architecture & Governance at NASCIO.
Greg Zorella, Principal Analyst at Forrester agrees, saying, “Many organizations understand what technology costs. The next challenge is understanding what technology creates. The CIOs making the greatest modernization progress focused less on funding structures and more on aligning technology investments to mission outcomes, building trust with stakeholders and creating mechanisms that allow modernization to continue despite fiscal and organizational constraints.”
The report concludes with practical recommendations for state CIOs, calling them to tie technology spend directly to mission outcomes, commit resources to building stronger relationships with agencies and policymakers and create cross-functional governance mechanisms that continuously evaluate where technology investments create the greatest value.