Raleigh, N.C. — Two days after he took office, Gov. Pat McCrory hit the ground running Monday, issuing his first executive order and declaring that the computer systems in various state government agencies need a serious overhaul.
McCrory cited audits of the effort to consolidate state information technology systems in his determination that the systems "are broken in almost every department." IT problems are most alarming in the Department of Health and Human Services, he said, where they could affect the distribution of food stamps and Medicaid.
"If this new system is not implemented in the way it was initially designed, then we're going to have some major issues in July regarding our citizens getting the needed services from state government," he said at a news conference.
Agency heads are looking to hire IT contractors to assist with the consolidation and to work out bugs in the system, said McCrory, who also named Chris Estes as the state's chief information officer, putting him in charge of IT operations.
Estes most recently served as a principal at strategy and technology consulting firm Booz Allen Hamilton. He previously worked as business development manager at consulting and accounting firm PricewaterhouseCoopers and at IBM.
"It is clear we have to modernize and digitize state government," McCrory said in announcing Estes' appointment.
Some computer systems aren't working properly, and no back-up systems are in place, he said.
McCrory also named former Rep. Fred Steen, R-Rowan, as his legislative liaison and Tony Almeida, a former colleague of McCrory's at Duke Energy Corp., as his top economic adviser.
In his first official action as governor, he issued an executive order rescinding an order last year from Gov. Beverly Perdue that created a judicial nominating commission. He said he planned to use his constitutional authority to name qualified candidates to open judgeships.
Perdue herself rescinded the order in December to allow her to fill an opening on the state Supreme Court on short notice before leaving office.
McCrory said he met Monday morning with his cabinet, and they discussed the "thin" budget surplus the state has through the end of the fiscal year in June. He advised the agencies to watch their spending but said they are finding it difficult to track revenues and expenses because many departments don't issue monthly budget reports.
A "cash-flow crunch" is expected to continue through May as the state tries to process income tax refunds while other collections are in a lull, he said.
"Money is not going to drop out of the trees. There is no new money at this point in time. We've got business that are barely hanging on," he said.
The cabinet also talked about problems with state government buildings. McCrory said many offices are "in total disrepair" after years without adequate maintenance, and some departments are so scattered among different buildings that they cannot work efficiently.
Some buildings also have security concerns that need to be addressed, but he declined to be more specific.
"The longer it takes to maintain and fix these buildings, the more expensive it's going to get for the taxpayers," he said. "Before we build new buildings like we have for the last five years in state government, we better take care of the ones we have. ... We build new things without having sufficient operations money to run them."
McCrory said the IT and infrastructure issues weren't the result of the Perdue administration. Rather, they were problems decades in the making.
"This is a long-term structural breakdown you can't put on any one individual or political party," he said.




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the taxpayers pay separate licensing fees for each of these and hire lots of staff and contractors to keep them running. Its the 21st century and one might think we could do a better job at centralzing and managing the IT budget.
January 8, 2013 11:59 a.m.
'If Bev had made the exact same statement the posters here would be pitching a fit. Why is that Daddy?' - piene2
If Bev had made the exact same statement the posters here would have cheered her for finally getting something right.
However Bev never made this statement. She does not have enough insight to understand that the state IT system is broken. In fact she amplified the problem by appointing incompetent IT executives to state positions during her tenure.
January 8, 2013 11:53 a.m.
January 8, 2013 11:53 a.m.
Exactly! IBM has a huge record of complete failure - not only in North Carolina but in many other states where the government has discontinued IBM contracts.
January 8, 2013 11:37 a.m.
The other point I will make after dealing with ITS is that the "IT experts" of the state are focused too much on goverance, paprwork, process (ITIL, etc,), and Enterprise Architecture thoery (TOGAF, etc.). The ITS team is completely incapable of delivering anything 'real'. Actually delivering a meaningful architecture, writing effective software, testing a system. or installing equipment is simply impossible for ITS.
This is evidenced by their interviews where they ask all sorts of ivory tower questions about ITIL, TOGAF, etc. - and do not look for the skills of actually successfully delivering programs from initial requirements out to successful implementation.
January 8, 2013 11:13 a.m.
That may be true, but it's not effective for a system that has rule changes and additions every month. The request for proprosal specified that the system needed to use modern coding languages and be extremely flexible. The system that "won" the contract is basically no different than the one the State already owns. If the State wanted to merely change fiscal agents, they could have written the RFP to include the option to continue using the existing, functioning system. The contract was awarded based on cost even when it didn't meet the technical requirements. I assume that's because the people rewarding these billion dollar contracts are either not IT people or are dinosaurs from twenty years ago.
Here's another article to take into consideration how antiquated the "new" system is before it's even been fired up.
http://www.bizjournals.com/triangle/news/2012/02/24/nc-medicaid-management-contract.html
January 8, 2013 11:07 a.m.
January 8, 2013 10:35 a.m.
January 8, 2013 9:52 a.m.
Actually, NC test scores have been about in the middle of the pack. Not too shabby for a state whose education spending is near the very bottom of the entire nation despite your claim about "money being thrown at it". Expect those scores to drop as we continue to underfund our schools. Last year, 1 in 8 NC teachers left the profession.
"What I've seen is that kids can't read, they are not being taught ANY life skills,"
Take the exception and pretend its the rule?
"they are being taught to the test,"
Because of standardized tests. Yes, the incentive is to teach to them. This was originally a conservative idea. I agree, we should end excessive standardized testing.
"and the pre school, pre-pre schools are just glorified baby sitting services."
Perhaps.
January 8, 2013 9:51 a.m.
If Bev had made the exact same statement the posters here would be pitching a fit. Why is that Daddy?
January 8, 2013 9:50 a.m.
January 8, 2013 9:43 a.m.
January 8, 2013 9:35 a.m.
January 8, 2013 9:23 a.m.
Also the last appointee as their Asst Dir has already left, and they kept the old dude who was there, Mr Clogg. I am sure that he is going to do just that, clog up the works, as he always has!!
FIX ESC!!!
January 8, 2013 9:14 a.m.
And all anyone wants to do is jump down Governor McCrory's throat before he even get's started.
January 8, 2013 8:56 a.m.
January 8, 2013 8:29 a.m.
January 8, 2013 7:58 a.m.
January 7, 2013 11:49 p.m.
I have been told time and time again that they hire internally - and reject the outside resumes. The only ones they take are the ones that are friends and family.
January 7, 2013 10:48 p.m.
http://www.newsobserver.com/2012/06/17/2142627/state-contract-for-updating-computer.html gingerlynn
WOW ! I read this article and this person/reporter does not have a clue on how the big world of IT works, especially about COBOL. I have worked in IT 22+ years and COBOL is still being used...everywhere !!
Most health insurance companies (BCBSNC), Banks (BOA,Wells Fargo), Investments (Fidelity) etc. still use COBOL on the backend systems running those JCL batch jobs that update your insurance claims, checking/savings account information and 401K information. Yes there are lots of gui interfaces (web pages) but guess what ? They are still accessing information stored on "big iron" mainframes and those mainframes are kept in sync with your information by using JCL, COBOL and other things.
Every time you
January 7, 2013 9:54 p.m.
January 7, 2013 9:53 p.m.
January 7, 2013 8:17 p.m.
(A) Centralization. There is too much of it. Yes, it sounds nice on paper to save money, but no, it's actually harder to manage in reality. De-centralization may require slightly more workers, but trust me, you'll get more from those people.
(B) IT employees are not allowed to do their jobs. I tell my organization how things need to be done, but the non-IT people override my decisions, so we end up spending more time, money, and equipment fixing their uninformed IT decisions.
(C) We outsource too much. Outsource only when it makes sense and don't get rid of state employees in the process; do it when employees matriculates, either through retirement or simply get jobs elsewhere. Employees who are under the constant threat of outsourcing and losing their jobs are NOT good employees.
January 7, 2013 7:59 p.m.
January 7, 2013 7:47 p.m.
January 7, 2013 7:31 p.m.
January 7, 2013 7:28 p.m.
January 7, 2013 7:19 p.m.
melodyjoyann January 7, 2013 6:46 p.m.............Bless your heart for trying so hard. Maybe you can anwser a question that has been up for debate earlier. Can you or anyone in your department verify someone's legal status with the current system you have?
January 7, 2013 7:16 p.m.
January 7, 2013 7:11 p.m.
January 7, 2013 6:46 p.m.
January 7, 2013 6:45 p.m.
January 7, 2013 6:45 p.m.
January 7, 2013 6:39 p.m.
The bubba network never stopped. The only difference is that instead of Democrats giving cushy state jobs to other Dems (remember Mary Easley and her 88% raise at NC State?),it's the Republicans turn.
January 7, 2013 6:23 p.m.
January 7, 2013 6:21 p.m.
January 7, 2013 6:21 p.m.
What exactly do you not understand? Many state employees are overworked, understaffed, and regarding the IT issues are outdated and FLAWED causing millions of dollars to go unseen each year. His challenge is going to be a huge one because of the policies and laws these agencies have and will certainly be very expensive to correct. The real bottom line is do we solve a flawed outdated system causing errors or we continue to ignore it and to what extent does this impact the taxpayer?
January 7, 2013 6:10 p.m.
Exactly! His name should be Pat McCrony
January 7, 2013 6:04 p.m.
January 7, 2013 5:59 p.m.
Another big spender. Different program, still a waste of my money. What is it about 'we need to cut spending' that people don't understand?
January 7, 2013 5:44 p.m.
"If he puts the right professionals in place to fix the states networks, there will be enough savings from fraud in just one small department to pay the cost. I would dare to guess megamillions of fraud in medicaid, medicare, social services, and food stamps"
January 7, 2013 5:39 p.m.
January 7, 2013 5:33 p.m.
Because I'm commenting on THIS story NOT one about the others. smh
January 7, 2013 5:28 p.m.
January 7, 2013 5:27 p.m.
This would allow the State to move from the many leased offices in Raleigh and Wake County.
DHHS has a LEASED call center for Child Support Enforcement and Food Stamps located in a rural eastern county -- SHOULD HAVE BEEN LOCATED IN RALEIGH WITH THE OTHER DHHS OPERATIONS!
Where is the State going to come up with the money to relocate the departments/division currently located on the Dix campus or to PAY THE CITY OF RALEIGH THE RENTAL ON THE DIX BUILDINGS BEING OCCUPIED?
Also, is the City of Raleigh now responsible for the policing and maintenance of the Dix buildings and grounds, since the lease has been signed? Seems the City should be!!!!!!!!!!!!!!1 Thus this will cut the Dix cost to DHHS.
January 7, 2013 5:27 p.m.
not in the least, but worried that he chose Pope, and you should be as well IF you did any research.
January 7, 2013 5:26 p.m.
January 7, 2013 5:24 p.m.
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January 7, 2013 5:09 p.m.
January 7, 2013 5:06 p.m.