Budget Troubles Lead to Louisiana Computer Project Delay

(MoneyWatch)  The Associated Press is reporting that a major upgrade to the State of Louisiana's government computer network has been delayed for now due to budget problems. The program had been planned for several years and was budgeted at over $100 million. Eventually the upgrade would replace various state department's systems with just one to handle financial planning and transactions as well as facility management. The state had already invested over $30 million into the project so far. If this type of program is implemented properly then it should lead to cost savings in the long run. Unfortunately due to the economic downturn the state has less money then originally projected and now the upgrade is not funded in the 2010 budget. More and more as the current economic problems continue governments, Federal, state and local, will be faced with these kind of decisions. This is the type of program that will also be delayed as it is an upgrade to an existing system that is probably sufficient for current needs. Of course there may be a way for the states to pay for programs using the Federal stimulus money that is starting is to flow out.