Texas Comptroller of Public Accounts
December, 2000
| | | Carole Keeton Rylander Texas Comptroller of Public Accounts December, 2000 |
To lead the way to a digital future, Texas will have to make profound changes in the way state government looks, acts and thinks. We have a vision of an e-Texas that:
We have already started implementing "quick wins" identified by the Comptroller. "Quick wins" are those initiatives that can be put into place without legislation, both within the Comptroller's office and with other agencies. They range from large undertakings, such as filing taxes online, to small changes that add up to a different way of doing business. For example, the Comptroller has:
These efforts show what government can do, given the right impetus and direction. Now the challenge is to extend this effort throughout state government. At the same time, we have to remember that the advent of digital government does not remove the need to provide effective services to people. Our mission remains the same, regardless of the available tools. Recognizing this balance, the e-Texas Commission has studied two central aspects of government: what the state needs to do to fulfill its mission (such as provide for public education, promote economic development, ensure safety, and protect the environment) and how it needs to operate to improve services (such as e-procurement, online access, and creative partnerships). What did we learn from a year of investigation, analysis, discussion and debate? Texas can be the leader of the new electronic frontier, if it makes these fundamental changes:
Texas state government is enormous, with approximately 250 agencies and institutions of higher education that do everything from supplying financial aid to single mothers to regulating the plumbing profession and tracking down criminals. Historically, these agencies have operated independently, even when their objectives, programs and customers overlap. The result is a confusing maze to those inside the system, but for the state's customers—citizens, businesses, vendors, partners, other governments—it is positively bewildering. They don't care about the structure or complexities of state government. They just want to conduct their business, whether it's to find information or renew a business license. In the past, state agencies could get by with decreeing what services would be delivered and how they would be offered. But no longer. Today's citizens expect the same service level from government they get from the private sector. They want convenience, choice, quality and personal service. And the character of the Internet will allow them to drive what government does more than ever before. The answer is simple, at least in principle. State government must listen to what people want and offer choices that respond to their needs. As the Department of Information Resources' strategic plan envisions, "All Texans will have direct and easy access to information regarding state programs and services. They will be able to address their needs and deliver their opinions directly to elected officials and members of boards and commissions— anytime and anywhere."
Of course, making a change of this magnitude will not be easy. What we are talking about is a fundamental shift in the culture and climate of government, and while Texas is already making some important changes, much more will be required. The state must take the following steps to provide the new basics.
Enable customers to interact with government as a single entity.
Texas has taken the first step by creating the new "TexasOnline" portal, which makes it possible to cut across organizational boundaries and present a single face of government to customers. The portal is now available to state agencies and local governments on a voluntary basis. If the various arms of government cooperate, the portal will allow Texans to submit their information and user IDs once to access all of government. We envision a time, not too far off, when citizens have a "My Gov" icon on their desktop and use it regularly to interact with government and obtain the information they need, whether it's public meeting announcements, starting a business or getting a child's immunizations on schedule.
Streamline government to eliminate duplication and fragmentation.
Some reorganization will be required to make state government a "customer-facing" enterprise that mirrors citizens' interactions with it. Clearly, this will be an ongoing task for the Sunset Advisory Commission as well as other performance review efforts. In the meantime, the state must adopt a statewide, or "enterprise" approach, for managing technology. By coordinating the establishment of IT systems that can share information, agencies will be able to eliminate duplicated effort and improve citizen services.
Make it easier to get information from government.
First, the state needs to share information across state agencies. The next step is to coordinate among all levels of government to make information easy to access. State government could provide a valuable service by partnering with local governments, federal agencies and related associations to create an electronic data clearinghouse—a single source for all local government data.
Every state is taking action to position itself as the digital leader. Some are concentrating on building the infrastructure required for e-government; others are putting up front-end applications that allow users to contact government online. We believe Texas can take the lead in creating an "entrepreneurial government." That may sound like an oxymoron today, but it is a real possibility for tomorrow if government is willing to take on the same challenges as the private sector.
Balance central oversight with agency autonomy.
We do not expect the organization and structure of government to change overnight. But the state can take an important step toward statewide, or enterprise-wide, coordination by establishing a central Program Management Office within the Department of Information Resources and giving it the authority to guide information technology decisions. Such an office would help overcome the "stovepipe mentality" of the past, where each agency operated in isolation and competed for state funds. It would also help maximize the state's resources by providing a central point for planning, setting priorities, managing projects and monitoring for quality assurance.
Offer more customer choice.
But this orientation needs to filter through all of state government. Therefore, Texas must:
Become the preferred provider.
The importance of communication cannot be overestimated, as the private sector is well aware. Governments, however, are doing little to market or promote online services, a recent report by Forrester Research concluded. The report urges state governments to start marketing their services as soon as possible, to let customers know what's out there and to promote their use. One idea: begin forging deals with private sector portal sites, such as Yahoo, to drive traffic to agency Web sites.
Networking is about connecting—not just data, but people. The networked organization looks more like a web of relationships than a hierarchical pyramid; it behaves more like an organism than a machine. Technology is the thread that joins customers, suppliers, contractors, shareholders, employees and even competitors.
For networked governments, technology offers the opportunity to create public-private partnerships and find new ways to achieve the ultimate goal. Over the last decade, it has become clear that such partnerships do not follow a single model, but vary widely in the level of private and public sector involvement. Texas government can make use of all these options to serve the public good.
Focus on the mission of government.
Texas is already using innovative arrangements to provide some services. For example, the TexasOnline portal is being designed, built and operated by a private firm, with the state retaining ownership of the architecture, and both partners sharing the revenues. We believe the success of such ventures will depend on the state's ability to nurture and manage networks. Texas spends some $14 billion per year on contracted goods and services. To be a responsible steward of public funds, the state must make the transition to performance-based contracting. That will mean establishing outcome-based terms when contracting for services (in other words, holding the contractor responsible for achieving the end goal, rather than detailing the means of getting there).
Expand the "Yellow Pages Test" to explore partnership opportunities.
Before government can be opened up to competition on a large scale, however, the state must clearly identify what services are being delivered in-house, which are already being contracted out and where additional opportunities for competition exist. Texas should follow the lead of the federal government and conduct a comprehensive inventory of activities that could be performed by the public sector. As at the federal level, state agencies would compete against the private sector—on costs and quality—for the right to provide the service.
Texas is recognized as a national leader in education. According to the National Educational Goals Panel, it is one of two states that have made the most progress toward educational goals established by Congress. We can take pride in the state's achievements, including a more equitable school finance system, better teacher pay and working conditions, greater access to early education, an exemplary accountability system and more educational choices for parents and students. But the state can't afford to rest on its laurels, because the information economy continues to raise the bar—and the stakes. Knowledge is the most valuable resource in this economy, and the lack of skilled workers is one of the greatest barriers to growth. In this arena, improving education is the most important thing we can do to assure a strong economic future and a high quality of life here. We know that Texas' students will need different skills to compete with their peers around the world. Their success will depend on their ability to analyze information, solve problems, apply technology, communicate effectively and respond quickly to change. Yet our schools still operate in much the same way they have for generations. It is time to:
Create a seamless K-16 education system.
In this world, education begins before school starts—and never ends. If Texas is to realize its potential, we must strengthen this entire continuum, including:
Use technology to cope with the pressure of growing school enrollment.
Texas has already started to exploit the potential of technology through the Virtual College of Texas, which offers online access to 39 courses from 21 community and technical colleges, as well as online courses and degree programs through public universities. But the state should take action now to become a leader in harnessing the potential of this delivery system, by creating an e-Texas University to offer online courses and programs. The virtual university should provide every Texan with access to high-quality, college-level courses that are easily transferable to any state college or university. As a first step, the state's entire core curriculum should be available online to college students to provide more flexible course offerings.
All state governments have Web sites with static information, such as meeting schedules, contact names and numbers, and programs offered. But e-Texas can offer so much more. The new technologies enable the state to truly change the way public business is conducted—not just automate "business as usual." This is a tremendous opportunity for Texas to create a competitive advantage that attracts economic development and good, high-paying jobs. Now is the time for the state to:
Rely on technology to deliver as many services as possible.
Build creative partnerships.
Actually, the state has already started with the self-funded TexasOnline initiative. KPMG, the private sector partner, made the initial investment in hardware, software and staffing, and will share net revenues with the state. Public oversight is maintained by a state-led governing board, which sets policies, approves cost-recovery mechanisms and oversees portal operations. Partnerships like this offer the public sector some key advantages—rapid implementation, outside funding, the skill set needed to make the technology work—and point the way to the future.
Act now and recalibrate along the way.
With technology moving at lightning speed, government must change the way it plans, designs and implements technology. It makes no sense to spend 18 months perfecting a request for proposals, if the technology is obsolete by the time it's issued. Instead, government needs to compress the planning cycle, use the available technologies and build flexibility into every initiative, knowing that it will change.
The Internet is challenging all governments to develop regulations and enforcement mechanisms that are very different from those of the past. These decisions will have a profound impact on the governed, in terms of public services, economic opportunities and standard of living. Texas government should focus on those areas where it can be most effective and is most needed: access, infrastructure, privacy and security.
Assure digital inclusion.
Information technology must be accessible to everyone. But market forces alone cannot be expected to make this happen: providers are in business to make a profit, and it is simply not profitable to stretch bandwidth to areas with few users. The state must make sure there are sufficient public access points throughout the state. It's not just a moral obligation, but an economic imperative.
Build the information technology infrastructure.
Leadership is critical. The state's policymakers must understand what the technology can do, where it is going and how it can help Texas. The recommended Program Management Office is a good start, but much more will be needed to make the most of the state's technology investments. The focus of the future should be on:
Address privacy and security concerns.
State government needs to build trust in the security (how information is protected) and privacy (how information is used) of its systems. That will mean reviewing statutory requirements about the collection and dissemination of information—most of which were put in place before the rise of the Internet. Setting standards, which the Department of Information Resources has already done, is necessary—but not sufficient to build the public's trust. The state must also be able to back up the standards with the authority to enforce them.
Texas government is a huge business, with nearly a $50 billion annual budget and over 272,000 full-time equivalent state employees. Many of the challenges it faces—from managing supply chains to training employees—are the same as those of companies like IBM, Dell, Texas Instruments and American Airlines.
Texas' businesses have had to make major changes to thrive—and sometimes even to survive. State government can learn from their experience, and use technology to reduce costs and produce savings.
Move purchasing and procurement online.
The state can realize the same kinds of savings by allowing agencies to solicit, receive, evaluate and award contracts through a virtual marketplace that links suppliers and purchasers. Such a network will generate tremendous savings in the labor and handling costs of purchasing goods and services. While processing purchase orders now costs $100-$150 per transaction, with e-procurement, the cost can be expected to drop to just a few dollars. Texas is already moving toward e-procurement with the pilot testing of the new Texas Government to Business (TxG2B) system. But achieving the full potential of these applications will require the state to transform its operations by centralizing administration, aggregating purchasing power and moving all procurement online.
Achieve cost savings from e-government.
The "quick wins" initiated as a result of e-Texas demonstrate the potential. For example, the Comptroller's Fiscal Management Division cut the cost of notifying state agencies of accounting and other administrative changes by almost $95,000 a year, just by switching from paper notices to e-mail. The new approach also cut the time to get the message out from seven days to about seven seconds. In 2000, Comptroller Rylander completed the first online auction of state deposits for financial institutions that want to compete for state funds. The electronic bidding auction, called BidTX, is an innovative new process that uses the latest Internet technology to invest state funds with institutions that offer the highest interest rates to maximize earnings on state revenue. These auctions are conducted monthly. Small changes like these quickly add up to a big difference for our future. |
e-Texas is an initiative of Carole Keeton Rylander, Texas Comptroller of Public Accounts |
Following our own advice—we need to start now and keep going—the e-Texas Commission decided to move forward with good ideas that emerged from the study process.
That means giving constituents the ability to do business with the state online—not just posting static Web pages with office hours or contact information. It means delivering services to suit citizens' convenience, not limiting them to suit the agencies' convenience. It means making government a more seamless part of people's lives—not an obstacle in their way.
Networking enables organizations to focus their internal resources on what they do best and outsource peripheral services, such as fleet maintenance, data processing and payment processing. It allows them to partner with top performers to provide a higher level of quality than either could achieve alone. And it cuts costs, as the Houston Independent School System found when it opened up its food service to competition. The contract was won by a private firm that has produced nearly $8 million in savings—while serving 16,000 more meals per day.
This is what the techies call "brochure-ware"—essentially printed information translated into an electronic form. Even those sites that allow interaction are often an electronic front counter masking an unchanged back office, where the real benefits can be realized.
Private sector leaders like these are using information technology to increase speed, reduce costs, expand choices and improve customer service. The results are dramatic: for example, the banking industry has found that a transaction processed by a teller at a branch bank is more than 1,000 times the cost of processing the same transaction online.