A major component of the City’s ICT Plan is to provide recommendations to strategically allocate funding for projects over the next five years. In order to make the City more responsive and more effective, major investments are needed. The following section describes the City’s IT fiscal strategies.
To make the City more effective in serving San Francisco, major investments in ICT are necessary. As shown in Table 3, the Committee on Information Technology (COIT) provides funding recommendations for $150M in General Fund spending including $59M for Annual Projects and $91M for Major IT Projects over the next five years.
ICT funding comes from a variety of sources within the City. They are:
Major IT Projects Allocation
In FY 2013-14, the Mayor and the Board of Supervisors created a new fund for the replacement of major legacy systems that impact multiple departments and pose a significant financial investment. The ICT Plan recommends the City increase the Major IT Projects Allocation by 10% every year.
Annual Projects Allocation
City departments may request additional support from COIT’s Annual Projects Allocation. The ICT Plan recommends that the City continue to increase the Annual Projects Allocation by 10% every year.
Sponsoring Department Project Funding
At times departments may fund citywide projects out of the operating budget or through a cost allocation.
Non-General Fund Sources:
Some departments have identified funding for ICT projects through department revenue, grants or other sources. These self-supported projects are reviewed using the same vetting process as General Fund requests.
Faced with more funding requests than what is available, COIT must invest in projects that have the greatest impact. The project evaluation process is led by the Budget & Performance Subcommittee which reviews ICT project annually and evaluates a department’s current and previous project performance.
ICT PROJECT REQUESTS
At the beginning of this budget cycle, COIT received more project funding requests than ever before. Departments submitted 158 ICT project proposals requiring $211M in funding support. COIT will recommend only $150M over the next five years, leaving a funding gap of $61M, shown in the table below.
To accomplish the City’s most critical goals, COIT must consider a variety of strategies to fund and prioritize essential projects. The following strategies help COIT prioritize, schedule, and fund projects.
Better project planning of major it projects
Sufficiently scope projects before they are approved for implementation and funding.
Alternative funding sources
Identify alternative funding for large-scale ICT projects to share costs between the General Fund and Departmental resources.
Breakdown large projects to access diverse funding sources
Create smaller cost categories in order to spread out funding through multiple sources
One-time funding sources and budget reallocation
Identify one-time funding sources and consider shifting existing ICT dollars to fund Major IT Projects.
Funding recommendations for Major IT Projects should be sequenced so that project are phased in and out to keep working capacity constant.
Postpone funding recommendations until planning is complete or resources become available.
Over the next five years, COIT received requests to fund approximately $101M to support Major IT Projects across the City. The Major IT Projects include: Financial Systems Replacement Project, Public Safety & Public Service Radio Replacement Project, and Property Tax Database Replacement Project.
COIT is also tracking the Department of Public Health’s Unified Electronic Medical Records (EMR) project even though no funding support is requested at this time.
In addition, COIT received approximately $110M in General Fund project requests, or $51M more than the COIT’s total Annual Projects Allocation of $59M.
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