State governments are getting more intentional about their IT budgets and subsequent procurement. Cybersecurity is a “must” — something that must be continuously funded to keep systems running safely and free from attacks. At the same time, they’re increasing their investment in AI, focusing on uses that include automation and operational efficiency, along with training so that state employees can put those tools to work.
Modernization is increasingly tied to real-world results, like better citizen services, expanded broadband access and more easily navigable systems. Funding is now being directed toward improvements people can see and use. How budgets are structured ultimately determines what gets maintained, what drives innovation and what moves quickly.
“In short, annual budgets keep things running. Capital funding drives long-term innovation. Grants accelerate specific high priory initiatives. So, understanding which budget your opportunity sits in tells a lot about who to talk to, how fast the funding will move, and how real that budget actually is”
— Benjamin Harris, immixGroup Market Intelligence Manager
Spending is shifting from simply buying technology for the sake of buying technology, to procurement to build long-term IT capability and resilience. With federal support and partnerships, states are preparing for both current and future needs.
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