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Report: California Could Save $1.3 Billion Over Five Years with IT-Enabled Productivity Gains

The 50 states could potentially save $11 billion collectively by leveraging self-service tools for routine employee tasks, automating manual processes, and optimizing agency operations, said the Information Technology and Innovation Foundation (ITIF) in a new analysis released Tuesday.

California state government could save as much as $1.3 billion over the next five years if it made boosting productivity with IT a top priority, a new analysis released Tuesday says.

The 50 states could potentially save $11 billion collectively by leveraging self-service tools for routine employee tasks, automating manual processes, and optimizing agency operations, said the Information Technology and Innovation Foundation (ITIF).

“To be sure, states have begun implementing some impressive IT programs that have led to noteworthy productivity gains, both for the agencies that implement them and the citizens and businesses that use them. The question now is whether these kinds of practices can be extended to a much larger set of government practices, programs and strategies across all 50 states,” said the new report, called Driving the Next Wave of IT-Enabled State Government Productivity.

Robert D. Atkinson, founder and president of ITIF and a co-author of the report, said one goal needs to be replacing labor with technology.

“Imagine a leaner state government that needs fewer workers and materials to get the same or better results,” Atkinson said in a statement. “By fully integrating technology into agency operations, governments can cut the time citizens waste standing in line or filling out forms, reduce the burden on taxpayers, and make everyday services more efficient and effective. This not only cuts costs, but also makes everyone more productive — which is essential for state economic growth.”

ITIF is a nonpartisan think tank based in Washington, D.C., affiliated with the Information Technology Industry Council, which advocates for the U.S. tech sector.