Wednesday, September 5, 2012

Taxpayers to Save 40 Million Dollars Each Year

Oklahoma taxpayers are set to save 40 million dollars during the current state budget year and each year thereafter according to a recent report. The Information Services Division of the state's Office of Finance released its fiscal year end report detailing the savings from the recently enacted plan to consolidate state government information technology processes. The report shows savings estimates continuing to climb and demonstrates that approximately 40 million of annual savings has already been achieved even though many state agencies still await the consolidation process. The savings can be attributed in part to lower software costs due to the fact that state agencies purchasing power has been combined and a 17% reduction in the number of IT positions needed to maintain the consolidated IT infrastructure. The plan also details additional levels of cost avoidance that are in addition to the 40 million of savings. This includes $1.8 million of potential cost avoidance after the centralised IT operation rectified software licensing-related liabilities previously incurred by state agencies. When the Legislature passed the proposal it required IT officials to realized a savings of at least 15% of the state's IT spend. The report demonstrates that the consolidation has met this goal. Last fall, Oklahoma Chief Information Officer Alex Pettit told the House Government Modernization Committee that the consolidation had allowed 30 million of year over year savings to occur. On the morning of September 11th, Pettit will again testify before the committee and will inform committee members of the newest savings numbers. Pettit is expected to field questions on his department's mitigation of legacy IT information security liabilities and the potential for additional savings as the consolidation continues. "CIO Pettit is doing a fantastic job implementing this plan," explained the concept's legislative author State Representative David Derby, R-Owasso. "During the next legislative year we are committed to continuing passing the legislation to enable these savings to continue." The IT consolidation provides a great example of a modernization reform that will save millions of dollars each year," stated House Modernization Committee Chairman Jason Murphey, R-Guthrie. "The report demonstrates that the plan has been successful and it is now our job as policy makes to export the concept to other policy venues to ensure even more savings can be realized." Pettit's testimony is expected to take place at approximately 11:00 am on September 11th in committee room 432a at the Capitol building. The meeting is open and the public encouraged to attend.

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