FEDERAL BUDGETING FOR INFORMATION TECHNOLOGY

Although there is broad agreement that more and better information tec hnology (IT) can produce government efficiencies and provide Icing-ter m savings, short-term budgetary constraints are making such investment s extremely difficult. At minimum, the current fiscal stress demands i mplementation of creative alternatives for funding such projects, brin ging into focus some budgeting opportunities which should not be overl ooked. This article examines the relationship between IT planning and budget formulation, use of the franchise fund concept newly implemente d in a pilot project by the Office of Management and Budget, and cost implications for outsourcing or privatizing the IT function.