Bush asks for 4 percent increase in IT spending

President Bush Monday proposed to spend nearly $71 billion on information technology across the federal government for fiscal 2009, a 4 percent increase from fiscal 2008, which is a slightly larger increase than in past years.

But the release of the federal IT budget request comes with dire warnings of the state of IT management in government. The Office of Management and Budget has classified more than 500 of 810 major IT investments as "not well planned and managed" -- up nearly 50 percent from fiscal 2008.

In all, Bush is asking for $70.9 billion for federal IT, a 4.3 percent increase from the $68 billion appropriated for fiscal 2008. The increase is about average for what the administration has requested in previous years, although the size of IT budgets has varied widely in recent years. During his first term, Bush asked for double-digit spending increases in response to the Sept. 11 attacks, and OMB also began including technology investments that had not previously been counted in the IT budget. Since then, increases in IT budget requests have ranged between 1 percent and 7 percent.

For 2009, Bush is requesting $37.8 billion in IT funds for civilian agencies, up 5 percent from the $36 billion in fiscal 2008, according to the president's budget. Bush is asking Congress to give the Defense Department $33 billion in IT funds, up 2.2 percent from the $32.3 billion in fiscal 2008. Most federal agencies did not have a significant windfall or cut. The Homeland Security Department's IT budget, for example, remained flat at $5.4 billion. But the administration is seeking a hefty 13.6 percent increase for the Veterans Affairs Department, from $2.2 billion to $2.5 billion. The VA recently reported major funding challenges relating to its medical system.

Agencies that saw modest dips in IT budgets included the Office of Personnel Management, the Small Business Administration, NASA, the Army Corps of Engineers, and the Navy.

OMB reported that agencies still need to develop information security policies and plans, institute performance measures, implement earned value management procedures and other management plans prior to receiving the funds. Of the 810 IT investments categorized as major investments, OMB concluded that 535 were not well planned and managed and placed them on its management watch list. The number of projects on the watch list increased 47 percent from the 364 listed in fiscal 2008. OMB categorized 275 investments as "well planned and managed," a 44 percent decrease from the 494 a year ago.

For the first time, OMB put a value on the cost savings accrued in fiscal 2007 from the electronic government initiatives the Bush administration introduced in 2001 under the President's Management Agenda. OMB calculated the government saved $508 million in fiscal year 2007, and the amount spent on investments dropped from $7.3 billion to $6.8 billion. The three dozen initiatives include GovBenefits.gov, which the public can use to determine eligibility for benefits; Grants.gov, which provides a single entry point to apply for and learn about grants; and IRS Free File, a single point to access free online preparation and electronic tax filing services offered by the private sector.

Government Executive will provide more detailed analysis of individual agency fiscal 2009 proposed IT budgets through out the week.