Innovative Funding for Innovative State IT

During the past several years, many states have found it increasingly difficult to obtain funding for state IT projects through traditional means, such as via appropriations from the state general fund. In spite of these tight economic times, citizens’ demand for improved ways of doing business with state government and 24 x 7 access to government services has remained strong. The purpose of Innovative Funding for Innovative State IT: New Trends and Approaches for State IT Funding is to provide states with innovative avenues of funding so that they can provide citizens with the government services they demand. This publication details eleven innovative funding models and provides case studies on how each model has been implemented by a state. Innovative Funding for Innovative State IT also includes a study conducted by NASCIO’s Corporate Leadership Council (CLC) that surveyed the states on the types of funding models they are currently using. The survey results from the twenty-three states that responded are included in this publication.

Innovative Funding for Innovative State IT is divided into three main sections, the first of which describes eleven innovative funding models as well as baseline requirements for implementing each model and the benefits each model may bring. The second section includes the compiled results of the CLC’s survey regarding states’ current use of innovative funding models. This section also details trends in state IT funding identified from the CLC’s survey. The third section includes case studies from nine states that exemplify how each innovative funding model has been implemented. The states that provided case studies for this publication are: Massachusetts, Texas, Minnesota, Tennessee, Ohio, Missouri, Delaware, Arizona and Hawaii. The appendices include checklists to give states a starting point for implementing each funding model as well as a chart of the CLC’s survey results and a list of other innovative funding resources.