OMB touts savings from e-gov initiatives

President Bush's electronic government initiatives saved agencies $508 million in costs during the 2007 fiscal year, according to the Office of Management and Budget.

The goal of e-government is to "improve services to citizens, to increase the efficiency and effectiveness of the government and to provide savings to the taxpayer," according to OMB's memorandum. To achieve those goals, the Bush administration is developing governmentwide IT services provided by one agency or service provider to manage cross-agency functions such as payroll, training and travel management.

As more agencies migrate toward common IT solutions, OMB expects agencies to save money by replacing or retiring aging, and more expensive to operate, legacy systems. According to a release from OMB this week, 43 legacy systems were slated to be shut down from the second quarter of fiscal 2007 to the first quarter of fiscal 2008. Agencies say they plan to shut down another 74 as of the second quarter of fiscal 2008. Some include payroll systems at the Justice Department and the Environmental Protection Agency, and travel management systems for the departments of Energy, Transportation, and Housing and Urban Development.

"The primary goal of e-gov was not to save money; it was to provide citizens with more data and transparency" about government operations, said Tim Young, associate administrator for e-government and information technology at OMB. "Saving money was a secondary or tertiary goal."

Young said OMB calculated the $508 million figure by taking the baseline budget number for systems expected to be affected by e-gov initiatives ($7.3 billion) and subtracting the actual costs of those programs in fiscal 2007 ($6.8 billion).

The release marked the first time the administration has told the public about the savings data realized through the e-government initiative. Young said OMB would likely release the savings figure for fiscal 2008 around the same time next year.

Also included in the release was an analysis of the line of business spending for fiscal 2008 and the projection for fiscal 2009.

For fiscal 2009, spending on lines of business development, modernization and enhancement is projected to be $25 billion, slightly lower than the $25.4 billion spent in fiscal 2008. Karen Evans, administrator for e-government and IT at OMB, said the decrease was due in part to the increasing adoption and use of cross-governmental initiatives by agencies.

The lines of business include the Federal Health Architecture, which received the largest increase in spending, $1.5 billion in fiscal 2009, up from $1.2 billion in fiscal 2008. Projected spending on the Human Resources Management line of business decreased to $508 million from $442 million. But OMB praised the program for continuing to make progress in standardizing and consolidating IT systems. The program uses public and federal providers and encourages departments to migrate to Shared Service Centers, which often serve more than one agency.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.


When you download a report, your information may be shared with the underwriters of that document.