Local government information technology trends: a 1995-1998 comparison for Virginia local governments.

• Author: Philips, Robert H.

In the Spring of 1995, the Virginia Government Finance Officers Association endorsed a survey on technology use by local governments to collect information regarding computer software, networks, and hardware. Questions were asked about technology currently in use as well as future plans. The 1995 study was replicated in the spring of 1998, when it was expanded to include questions about Internet use. This article highlights the major differences in findings between the two surveys, which suggest that there have been some shifts in technology emphasis by local governments.

The survey was sent out to all 95 Virginia counties, 41 cities, and 32 major towns. The localities range from populations of more than 800,000 to less than 6,000. The response rate in 1995 was 59 percent (99 responses) and the response rate in 1998 was 35 percent (59 responses).

Exhibit 1 FINANCIAL REPORTING SYSTEMS (FRS) PLATFORMS Platforms FRS Runs On 1998 Results 1995 Results Host (Mainframe or Mini) 81% 76% Local Area Network 19 17 Stand Alone PC - 7 Total 100 100 Exhibit 2 AGE OF FINANCIAL REPORTING SYSTEM Age Bracket 1998 Results 1998 Results % of total % to be % of total % to be replaced replaced 0-2 years 12 30 14 15 2-4 years 10 0 12 18 4-6 years 12 0 12 27 6-8 years 19 33 25 22 8+ years old 47 45 38 40 Total 100 33 100 28 Accounting Software

Participants were asked a range of questions regarding their financial reporting systems (FRS) and related subsystems such as accounts payable, payroll, and tax assessment. Exhibit 1 shows the survey responses regarding the hardware platforms used to run the FRS systems. The responses indicate that mainframe and minicomputers continue to be the platform of choice for running the core financial applications, despite other findings (reported later in this paper) indicating that local governments are increasingly investing in the construction and maintenance of local area computer networks.

Exhibit 2 reports the age of the financial reporting systems as well as data on planned replacements. A full one-third of all local governments responding in the 1998 survey report that they will replace their FRS within the next two years, as compared to planned replacements of 28 percent reported in the 1995 survey. Forty-five percent of all systems more than eight years old were scheduled for replacement at the time of the survey; the high level of planned replacements for these older systems may be driven partially by municipalities using...