Hartford, CT -- The budget for the Department of Administrative Services [Section 32 (a), (b) & (c)] reveals a great deal of fiscal prudence on the part of the document's authors and perhaps, an inconsistency in the Administration's policies. A close read of this year's budget proposals has unearthed an interesting bit of information for those concerned with how the State of Connecticut expends resources for information technology programming and services.

In the proposed OPM budget, in the section, titled "Hospital Billing System" (DAS), the following narrative appears:

"… the unexpended funds for the development of a new hospital billing system are carried forward through the 1999-2001 Biennium. An estimated $4.0 million will carry forward. DAS plans to develop and implement a new system in-house, rather that (sic) outsourcing the project, due to the significantly greater costs reflected in bids ($8 and $12 million)."

The Connecticut General Assembly, in their budget notes, explained further:

"It should be noted that funds for this project have been available for six fiscal years. This project has been delayed for several years due to difficulties in contracting for an outside information technology (IT) vendor to undertake the project. There have been problems in defining the requirements of the contract and the responsibilities of the IT vendor. The project was bid and the two bids that were received were $8 million and $12 million. The project is now to be conducted in-house at much lower cost and is expected to move forward in the next year."

While pointing out this line in DAS's Program Budget, State Comptroller Nancy Wyman said, "The Office of Policy and Management's commitment to keeping down costs by utilizing the State's in-house expertise to solve the hospital billing system issue should be commended. As I have been saying for some time, the traditional goals of outsourcing --decreased cost and increased efficiency, can well be met by utilizing our existing state employees. What is necessary is true leadership, vision and stewardship on behalf of the citizens of the State of Connecticut."

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The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
April 20, 1999

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