^®: CRE Regulatory Action of the Week

The Cost of E-Government
Watchdog organizations are debating whether e-government projects will save the government money. Expected cost-savings from streamlining technical processes and eliminating duplicative computer systems has been a key justification for undertaking e-government initiatives. However, a leading expert opined that, "successful e-government projects might end up costing taxpayers money" by stimulating public demand for services provided by federal agencies. Similar views were expressed by officials from EPA and SBA. Although the discussion of e-government at the forum sponsored by Council for Excellence in Government focused on "big picture" issues, such as the nature of potential savings from e-government, CRE believes that the specific policies which guide the selection and implementation of e-government projects need to be fully analyzed in order to assess project costs, benefits and efficiency.