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Gov. Pat McCrory
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McCrory: State government IT system 'broken'

Published: 2013-01-07 14:36:00
Updated: 2013-01-07 18:49:22

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Perdue herself rescinded the order in December to allow her to fill an opening on the state Supreme Court on short notice before leaving office.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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it does not take lots of degrees to know that state IT system is messed up. Simply look at the UNC system. each schools has IT departments, student scheduling, accounting departments and systems, etc.

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.

"McCrory: State government IT system 'broken'"

'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.

Eliminate ITS and that will be a good beginning towards fixing state IT.

"75Tarheel- IBM has had a lot of contracts with the State and MOST of them have been a colossal joke" - computer trainer

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.

jason19 makes some good points about centralization, state IT employees not being allowed to do their jobs, and excessive out-sourcing.

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.

"I have worked in IT 22+ years and COBOL is still being used...everywhere !!"

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

State IT professionals are paid 15-20% less than the industry standard. Years ago benefits & retirement made up the difference but that has been whittled down to almost nothing. This does nothing to recruit or retain qualified professionals. Even if the compensation were adequate the hiring process in most agencies is much more focused on personality than technical qualifications. Cronyism is rampant. Long term strategy decisions are made by politically minded administrators who are primarily concerned with covering their own 6s and rewarding their friends. First priority should be to shave 10-15% off the top of the ITS org chart and put real *technical* IT professionals at the top levels. Put IT decisions in the hands of IT professionals. Hope I'm wrong but McCrory's outsourcing will likely be just another case of attaching more political friends to the state teet. Please do something real Pat not just another dog & pony show designed to appease the public and reward your friends

75Tarheel- IBM has had a lot of contracts with the State and MOST of them have been a colossal joke.

driverkid-"Lovely Breeze, what great improvements have you seen in schools with all the money that has been thrown at them in the past, say, 15 years?"

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.

"McCrory: State government IT system 'broken'"

If Bev had made the exact same statement the posters here would be pitching a fit. Why is that Daddy?

Hire IBM and get out of the IT business......

I saw a piece where gas pump inspections were way behind because they do it on paper and use file cabinets. That is crazy in the modern world. Glad he notices this and can do something to bring them up to date. All systems should communicate as that is the only way to watch for bad dealings and theft or mismanagement.

Thank Goodness someone has finally figured out that other state agencies need help besides the school systems.

I hope that one place they will look is the ESC. Those folks need an IT overhaul in the WORST WAY! The billions of dollars that they gave to people who did not deserve them is just plain crazy. And that "new" system that their former Director was all excited over, I have heard that it is YEARS down the road from becoming a fact. That dude made it sound like they were going to implement it LAST year. NOPE. Smoke and mirrors.

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!!!

Lovely Breeze, what great improvements have you seen in schools with all the money that has been thrown at them in the past, say, 15 years? What I've seen is that kids can't read, they are not being taught ANY life skills, they are being taught to the test, and the pre school, pre-pre schools are just glorified baby sitting services.

And all anyone wants to do is jump down Governor McCrory's throat before he even get's started.

"Trubtold" - Look at what Gov. McCrory did for Charlotte, NC...They should be the capital of North Carolina, NOT Raleigh....Hopefully he will change that...and, it looks like he is starting to do just that...

This is actually a very good idea. It baffles the mind when you call the NCDOR that they have no clue as to how many tax returns they have on hand and how many they process daily. However one of the writers stated that we should spend less money on schools I don't think that's a good idea considering the fact that only half of in state students can meet the requirements to get into the colleges in this state. Making people dumber in an already horrible economy isn't going to make this state better they'll end up like the people in Rowan county, Richmond county etc. after the manufacturing jobs left the state.

No difference between McCrory and Perdue! She came into office and after a couple of days made same statements and proceeded to put her political cronies into place to run major state agencies. Her admin implemented new IT contracts with private companies to update state budget, e-procurement, IT, Medicare... and they all screwed up... leaving rank and file state employees to clean up and work overtime. And here we go again.. only sworn in two days and Mr. Fix It is putting his political cronies in major state departments and he's gonna fix purchasing and IT...etc. Pray for us Sister Esther...pray for us!

The problem isn't that there is not competent people OUTSIDE of the State. The problem is that the only competent people ARE OUTSIDE of the State jobs.

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.

look at the N&O series on the CSC disastrous implementation and cost overruns of the "new" medicaid system...most of it being offshored by Indians who have no idea what medicaid is.

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

I wonder if this new governor will fly around the state in shiny new expensive jet and helicopter like the last one did and let 1.8 million dollars a year sit in the hangar underused? Or if they will actually grow a set and make some changes?

The previous comment about outsourcing is very important. The State of NC lost a lot of IT talent when the INSA study was being done and it was looking like there was a good possibility of IT being outsourced. Unfortunately, with the economy and budget shortfalls, NC has not been able to be competitive in finding good talent. Most of the folks still around have 15+ years and it isn't worth it to leave. They have only had a 1.5% raise in 4 years and worker morale is very low. There are a lot of dedicated state workers in IT and elsewhere, though, but some have lost their path and hopefully forward thinking initiatives will be put in place soon.

I work in IT in state government in NC, and here are the biggest three problems in my opinion:

(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.

What a JOKE!!!!! For years, the little right wing REPUBLICANS have fought against spending ANY money to modernize and upgrade state equipment, and NOW they are wondering why its in such bad shape!?!?!?! WOW!! Right wingers sure are funny when they come down with their well-timed amnesia.

Government IT costs money. Will he fund the upgrades?

Yes, we have access Rebelyell55

Totally agree with Pat on this one.

This is an issue that no one, local government or state government, is paying attention too.

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?

Ditto 100% melody johann!

The State of North Carolina's citizens are already being affected by the poor state of the IT system. I work as a caseworker for social services and I have clients that have not gotten benefits since November. This is due to poor planning and poor support on the NCDHHS. We as caseworker's are severely overstressed, and our counties citizens are struggling to provide food for their children. This is an issue that no one, local government or state government, is paying attention too.

Don't worry Pat. Beverly Blacktoped 540 and 440, even though it wasn't done right It done and wasted Money. Driving both all the CRACKS that were not fixted are now CRACKING UP AGAIN. GOOD JOB BEVERLY, More Liberal wasted Money.

pbjbeach grammar, punctuation and editing are your friend.

The state has been in trouble with computers since the legislature gave too much control to ITS. It is a self perpetuating bureaucracy that has no incentive to do anything but exist and get bigger. When each department had its own computer people things worked a lot better. It was not perfect, but at least the people knew what the agency was doing. ITS is a bloated mess that should be disbanded.

"The bubba network will be in full swing in a matter of weeks." --- jgilchr

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.

There are a lot of government run agencies which are BROKEN....it is sad that those in charge do not do something about this. So I guess we will just all wait and see what this governor is going to do....OR NOT...

THANK YOU......it's about time for this state to stop fraudulant activity in regards to medicare, medicaid, social services, and food stamps. Stop giving to undeserving and lying people. If it continues....I, along with many others want a almost new car, and house that Is free!!!!!

Mr. Middle of the Road - 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?

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?

""He said he planned to use his constitutional authority to name qualified candidates to open judgeships." In other words, I'm giving jobs to my buddies. Not even a month in office and Republican cronyism is instituted. The bubba network will be in full swing in a matter of weeks."

Exactly! His name should be Pat McCrony

I'm really, REALLY, hoping that someone on here ain't working for our state, let alone, IT.....

'There is a critical difference between supporting necessary spending and supporting boondoggles and wasteful spending'

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?

I could not agree more with the the statement below:

"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"

Some of those DHHS consultants are retired State emps who refused all along to share their knowledge and simply complained to the boss if anyone tried too hard to find out. Now they can only work limited hours or their pensions won't pay. And they still refuse to share knowledge.

"Why aren't you also concerned that Obama, Perdue, and Easley were in George Soros pocket. ConservativeVoter"

Because I'm commenting on THIS story NOT one about the others. smh

also pbj, now that I've sorta gotten thru your post, it makes no sense. Please read it yourself and you'll agree (I hope)

The scattering of offices of a department or division is one reason that Dix should not become a park -- BUT RATHER BE DEVELOPED AS A STATE OFFICE BUILDING SITE WITH SOME NEW BUILDINGS AND A MULTI-LEVEL PARKING DECK. Not just DHHS but many other departments could be located there.

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.

"Jealous that he did not choose you? charmcclainlovesdogs2"

not in the least, but worried that he chose Pope, and you should be as well IF you did any research.

PLEASE pbjbeach, turn off your caps lock! You do not need to yell, plus it's harder to read. just sayin

I'm sure this will come as a HUGE shocker to some, but DOR has outsourced the re-write of our tax system.....and every week they bring in folk straight from INDIA....don't we have NC citizens that could do that work?!?!?!?

"He said he planned to use his constitutional authority to name qualified candidates to open judgeships." In other words, I'm giving jobs to my buddies. Not even a month in office and Republican cronyism is instituted. The bubba network will be in full swing in a matter of weeks.

SCUBAGRIL: YOUR ARE SO RIGHT WITH YOUR POSTING ON HERE WITH REGARDS TO POPE AN THE NEW GOV WITH THEIR PROBABLY RELATIONSHIP TO THE KOCH BROTHERS AN THEIR KINDA OF ILK OH BUT FOR THE GOOD OLD DAYS OF BEV AN I NEVER THAT I WOULD EVER TYPE ANY SUCH THING AS THE PRECEEDING STATEMENT IN MY ENTIRE LIFE YOU CAN BET ON THIS ONE FACTOR THOUGH THAT THE PUBLIC SECTOR AN THE STATE EMPLOYEES IN THIS STATE ARE TRUELY DOOMED WITH MCCORKER AS THE CURRENT GOVERNOR WITH REGARDS TO BENEFITS AN ANY FORM OF MONTARY INCRESES IN THE SALARYS FOR THEY DON'T HAVE A POT OF GOLD . I GOT SO TIRED OF HAVING TO HEAR THAT STATEMENT WHILE EMPLOYEED WITHIN THE STATE GOVERNMENT. I TOLD A MEMBER OF MANGAMENT THAT I SPOTTED A LEPERICON SETTING UNDER A TREE ON DAY AN THAT HE HAD HIS POT OF GOLD AN WAS WAITING FROM HIM TO COME AN GET IN ORDER TO GIVE STATE EMPLOYEES A RAISE FOR THE YEAR HA HA HA HA HA THAT WAS THE USUAL STATE GIVEN OUT TO ANY EMPLOYEE BY MANGER AN UPPER AN EXECTIVE MANGERS BUT I' LL BET THATUPPER MANGAMNE

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