In his FY 2013-2015 Executive Biennium Budget, Hawaii Governor Neil Abercrombie highlighted the daunting challenges that faced his administration during the last biennium, including a $1.3 billion potential budget shortfall that threatened deep programmatic cuts to department operations statewide. The governor utilized a fiscal strategy to only address pressing needs while investing in the state’s future, with goals to improve government efficiency and transparency. For this biennium, Hawaii’s gross domestic product (GDP) is expected to increase by 2.4 percent in 2013, while unemployment rates continue to decrease.

The new biennium budget (seen above in Figure 1) has several areas of investment, including:

• Early learning and early childhood health
• Education IT and digital curriculums
• Increased resources for Hawaii’s aging population
• Environmental sustainability and protection

The biggest gains by department from FY 2013-2014 include the Department of Human Services ($309 million), Department of Budget and Finance ($251 million), and Department of Transportation ($52 million). The Department of Hawaiian Home Lands saw a budget decrease of $140 million. Investments for FY 2014-2015 include $151 million for the Department of Human Services and $91 million for the Department of Budget and Finance.

Although the numbers in Figure 2 look as if Hawaii has invested millions in information technology, the numbers actually represent more transparency into Hawaii’s IT reporting. Deltek was able to gather more data on the total value of IT projects in the state for the biennium budget. Health IT was a major investment, including $2 million for its health information exchange (HIE), $45 million for Medicaid IT initiatives, and $15 million for an electronic medical record (EMR) system. The Department of Taxation is also investing nearly $32 million into its tax system modernization project for FY 2013-2015.

Despite tough times that followed the economic recession, Hawaii has laid the groundwork for a stable foundation and is continuing to increase both its GDP and IT spending. Vendors working in the education, health, and environmental space should check out Deltek’s analysis on Hawaii’s budget here, and brush up on the Aloha State in our state profile application. For a free trial, please click here.

The most common terms appearing in justice/public safety and homeland security solicitations during April were fire alarm and alerting, camera/surveillance and radio. The below word cloud provides a visual interpretation of key term frequency.

• Number of Public Safety Bids: 1,400
• Top three states (by number of solicitations released): California (175), New York (95) and Pennsylvania (75)
• Top three keywords:  fire alarm and alerting, camera/surveillance and radio

Frequency of terms:

• Radio: 8 (4 state, 11 local)
• 911: 1 (3 state, 1 local)
• Computer Aided Dispatch (1 state, 3 local)
• Records Management System (1 state, 2 local)

Like March, April was a slow month for justice and public safety (JPS) procurements; and while numerous solicitations were released, there seemed to be little movement on projects in the early development stages. Many governments are waiting on funding to move forward with projects, and agencies widely differ in their approaches to how much work they put into a project prior to securing funds.

While some states are hesitant to spend a lot of time planning and developing specifications for projects that may never receive funding, others like Georgia work to have a nearly completed plan in place so that a project can move forward quickly once funding is secured. Vendors should be aware of these different approaches and have patience with governments that are unwilling to spend large amounts of time consulting with vendors early on. 

Many governments further along in project planning took big steps in April by releasing RFPs or RFIs, many of which were large in scale. Waukesha County, Wis., released an RFP for a trunked radio system, while Fairbanks North Star Borough, Alaska, released one for a new 911 system. These major projects, which have been in the works for several years, are likely to be among the most expensive these entities will undertake for some time.

Numerous entities also released solicitations for smaller projects, such as Cook County, Illinois’ inmate telephone audit and the Florida Department of Corrections’ inmate telephone system. Given the fact that inmate phone systems tend to be paid for by users rather than the government, these projects often require less lead time; therefore, vendors would be wise to contact project managers sooner than later to share their expertise before a solicitation is released.

Analyst’s Take

Vendors should gear up for a couple busy months as late spring and early summer tend to be extremely active for projects before the summer lull strikes in July and August, which tend to be slow due to vacations and scrambles to cover holidaying colleagues. For entities with July budgets, these months also act as planning weeks when solicitations and projects are worked on behind the scenes as agencies decide what to do with their funding. Many states and localities are also waiting to find out if they have received money from grant applications submitted in spring, such as the Justice Assistance Grant (JAG) program, for which applications are due May 30, 2013. Therefore, vendors should work particularly hard in the next few months to identify and make connections for projects that may be waiting on money from grants and the next budget cycle. 

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Last April, Deltek utilized the Federal Communications Commission’s PSAP Registry to give vendors an overview of public safety answering points (PSAPs) in counties nationwide. Now, we’re using the current registry to detail information on consolidation efforts and other changes that have taken place across the country in the last year.

Consolidation projects have been taking place for the last few years as cities and counties work to become more efficient and, ultimately, save more money; however, the total number of PSAPs actually increased by 64 from 2012 to 2013. Still, of the 8,393 PSAPs, only 7,485 act as the primary call-taking location – 908 are considered “orphaned” and are no longer utilized. These orphaned PSAPs will not be included in future filings with the FCC.

Just as in 2012, Texas has the most PSAPs (667), followed by California (587) and Illinois (422) – all three states also saw slight increases in their total number of PSAPs year to year.

New Hampshire still has the fewest PSAPs (5), and Delaware’s nine puts it second from the bottom. Washington, D.C. held that spot in 2012, but an increase from seven to 11 PSAPs now ties the district with Vermont and Hawaii for having the third lowest number.

As of April 2013, a total of 719 PSAPs have changed name, state, county or city compared to only 679 that had as of April 2012. The majority of these took place in California, followed distantly by Nebraska – providing further evidence that dispatch centers in many locations are consolidating efforts and working to cover a wider geographical span.

The below chart provides a visual representation of PSAP locations by city and county in 2012 and 2013, as well as information on where vendors can find the most opportunities.

Analyst’s Take

The number of dispatch opportunities in each of the regional areas has remained steady since 2012, with nine solicitations in the works in Los Angeles and Boston, and 12 within 100 miles of Chicago and 21 within 100 miles of New York City. This should provide some hope for vendors that cities and counties are still interested in purchasing dispatching technologies despite the tough economic climate.

Dispatch technologies are among the most vital tools that police use, and localities have little choice than to purchase new ones once they reach the end of their life cycles. This trend, along with increasing number of PSAPs, is likely to continue as individuals’ ability to report where and when crimes take place becomes easier. 

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• Governors’ renewed interest in performance-based management, particularly in education
• More effort to cut corrections and incarceration costs by investing in probation, parole and electronic monitoring programs
• Heavy focus on Medicaid expansion (both for and against), and how to reduce its costs
• Increased dedication to developing a strong future workforce by establishing a wealth of present educational opportunities, led by digital learning platforms
• Amplified justice and public safety initiatives due to natural disasters (Hurricane Sandy) and national tragedies (the Newtown shootings)
• Continued plans to streamline and consolidate government operations through technology

• 2013 by vertical
• 2011-2013 comparison by vertical
• 2008-2013 average by vertical
• 2013 Agenda Item Popularity vs. 2011-2013 average by vertical
• Top 25 cross-over agenda items
• Agenda items with mention of technology, 2013
• Agenda items mentioned by state, 2013
• Community development, economic development/regulation, natural resources/environment, and transportation agenda items, 2013
• Education agenda items, 2013
• General government services and public finance agenda items, 2013
• Health care and social services agenda items, 2013
• Justice/public safety agenda items, 2013

Michigan Governor Rick Snyder is utilizing his fiscal year 2014-2015 budget to highlight Michigan as the nation’s “comeback state,” calling for both fiscally responsible and innovative spending to ensure a bright future. With no big surprises, education, health care reform, and transportation are among the state’s top investment priorities. More than 75 percent of the budget is dedicated to education and health and human services, and state spending will go hand in hand with outcome measures and performance metrics.

The FY 2014 budget totals $51.8 billion, a 7 percent increase from FY 2013. The FY 2015 proposed budget tops $53 billion. Table 1 below represents the total budget starting in FY 2010.

Michigan’s FY2014-2015 budget is spot on with Governor Snyder’s goals to increase better health outcomes, education, and transportation for Michigan citizens. Touted as the “comeback state,” Michigan is turning a corner as employment rates and personal income rise. The unemployment rate is decreasing faster than the national average, and the housing market is starting to gain momentum. Further, the governor has called for a focus on long-term solutions and assistance for struggling local entities. For a deeper dive into the state’s budget, please click here for an Analyst Perspective (log-in required).

Deltek is currently tracking more than 30 core-IT opportunities in the state of Michigan, valued at an estimated $3.3 billion. Vendors interested in forming a partnership with the “comeback state” should visit our Michigan state profile to access procurement information, budget documents, and key contacts.

Every April, National Public Safety Telecommunicators Week celebrates the work that telecommunicators engage in every day to keep their communities safe. These individuals are often the first line of defense in the face of tragedy and work to keep everyone calm on what may be the worst day of their lives. When a call comes in to 911, they are the ones charged with gathering salient information, determining which agencies are best to respond, and dispatching first responders.

Public safety telecommunicators also provide key instructions for individuals calling in with an emergency, whether instructing them where to hide during a home invasion or how to give CPR and clear an airway.  

Telecommunicators rely not only on their extensive training and people skills, but also a complex network of technologies to ensure the appropriate help arrives at the correct emergency location as quickly as possible. In the past year, communities nationwide have recognized the importance of these essential technologies and have sought to upgrade or replace antiquated systems.

In the past year, several solicitations were released for the following technologies:

• 911 (Enhanced and Next Generation): 24 
• Records Management Systems (RMS): 19 
• Computer Aided Dispatch (CAD): 13 
• Automatic Vehicle Location Systems (AVL): 7 
• Geographic Information Systems (GIS): 6

Many public safety priorities for 2012 and 2013 emphasize increasing utilization of these systems and improving first-response efforts, which rely heavily on cooperation of neighboring jurisdictions or agencies in the event of an emergency. Increased interoperability coupled with the ability to receive information in real time has greatly enhanced overall telecommunications.

While most state and local governments manage their own dispatch centers, there is likely to be a continued focus on consolidation and partnerships between agencies to curb costs and improve efficiency. Dispatch equipment such as CAD, RMS, GIS mapping and AVL technology are typically procured through a formal solicitation process. Usually, CAD and RMS equipment are procured together, but as most of these technologies require integration, agencies may choose to procure all equipment within a technology suite. This helps agencies save time and money and allows for simultaneous upgrade and implementation processes.

The upgrade or enhancement of 911 systems to next generation has been on the radar of many governments over the past few years due to many systems becoming obsolete. Next generation 911 advancements have put pressure on agencies to incorporate new capabilities into 911 systems, such as the ability to receive text-to-911, video streaming and picture messaging. Most 911 projects are implemented through a formal procurement process, and some agencies even prefer to utilize an RFI or hire a consultant prior to formal implementation. Despite tight budgets, agencies will likely continue to put forth the effort to ensure the most efficient and advanced dispatching technologies are purchased because, like dispatchers, these systems are central to the mission of public safety agencies.

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The most common terms appearing in justice/public safety and homeland security solicitations during March were fire alarm and alerting, camera/surveillance and consultant. The below word cloud provides a visual interpretation of key term frequency.

• Number of Public Safety Bids: 946
• Top three states (by number of solicitations released): California (116), Pennsylvania (65) and Texas (65)
• Top three keywords:  fire alarm and alerting, camera/surveillance and consultant

Frequency of terms:

• Radio: 8 (6 local and 2 state)
• 911: 1 (1 state, 1 local)

Compared to the flurry of activity in February, March proved to be a slow month for procurement across the country. One trend that carried over, unfortunately, was that of canceled projects. Governments continue to be concerned with sequestration and the potential funding impact it may have, which was especially evident in early March. The majority of canceled projects were at the state level, which is expected to get the most immediate impact of sequestration.

New Jersey’s Department of the Treasury canceled its requirement for statewide 911 telecommunications equipment, and West Virginia canceled its video surveillance system project. Some locations are even putting aside critical systems replacements in favor of cheaper upgrade options, as Sacramento, Calif., did with its radio system project.

Very little uniformity was seen in March in terms of the types of projects procured across states and localities. Fear of increased spending cuts has likely caused purchasers to create even more rigid priority lists and focus only on the most essential items first. Sandy Springs, Ga., for example, released a solicitation for its unified radio system project management opportunity, which will cover several cities in north Fulton County. The city plans to purchase the system off of a statewide contract once the project manager makes its recommendation. Likewise, Charleston County, S.C., released a long-awaited RFP for its public safety software system after releasing two RFIs for the project beginning in 2010. The project has undergone significant transformation from the original RFIs, with entities and systems joining and being removed over the last three years, as is common in projects that take significant time to finish.

Analyst’s Take

The evolution of projects from an initial RFI will be important for vendors to remember considering RFIs were particularly abundant in March for both state and local governments. The technologies sought through these RFIs vary widely and provide opportunities for vendors across the board. Orange County, Fla., released an RFI for thermal imaging cameras, while the Florida State Courts System released one for remote court interpreting technology. New York’s Metropolitan Transportation Agency (MTA) released an RFI for a new radio system, and the state of Iowa released one for digital radios and communications devices. 

The prevalence of RFIs continues to be an encouraging sign that the market may pick up; however, vendors should still practice cautious optimism. As seen in Charleston County, it can take several years before funding is secured for projects mentioned in RFIs, and the scope can shift significantly. Agencies often use RFIs as a way to estimate the cost of their projects and are often forced to cut back on the physical scope or requirements upon learning the true cost.

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With an overall increase of just more than 4.5 percent, Pennsylvania Governor Corbett’s $66.7 billion fiscal year (FY) 2014 budget shows signs of increasing economic strength for the commonwealth. Major reform initiatives include selling the state liquor system to invest in education, modernizing Pennsylvania’s transportation infrastructure and overhauling state pension systems. The sale of the state liquor system is anticipated to generate $1 billion and will fund the Passport for Learning Block Grant for school districts that can use the funding to enhance access to science, technology, engineering and mathematics (STEM) programs as well as for other initiatives.

From a vertical standpoint, health care, primary and secondary education and justice and public safety all saw increases hovering around 5 percent. The increase in health care can be attributed to expansion of services for disabled and older Pennsylvanians and children, and increased funding for state health centers. According to Acting Secretary of Health Michael Wolf, “In Pennsylvania, two million people live in communities that the federal government has designated as medically underserved.” 

Table 1: Pennsylvania Total Fiscal Year IT Line Items Budget

Overall spending on information technology projects increased 15 percent from FY 2013, much of which was designated toward general departmental IT modernization efforts, including shared service delivery under the Office of Enterprise Technology Services. The Technology Innovation Investment Fund received $7.7 million for enterprise and agency-specific innovation initiatives. The Governor’s Innovation Office has also prioritized specific IT projects in FY 2014 include the streamlining of print, imaging and mail operations, and implementation of electronic grants processing, which are expected to save the state $7 million and $50 million, respectively.

For a full analysis of Pennsylvania’s FY 2014 budget, see Deltek’s analysis, available here.

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