Citizens Against Government Waste (CAGW) today highlighted the report from the August 5, 2008, Sacramento Bee, “California state computers can’t handle pay cut, controller says.” Governor Arnold Schwarzenegger (R) ordered that all state employees be paid minimum wage until a budget is adopted, placing a huge burden on the state’s antiquated computer system. State Controller John Chang told the Bee that “it would take at least six months to reconfigure the state’s payroll system,” which he described as relying on “vacuum tubes and floppy disks,” to comply with the governor’s request.

“Legacy computer systems like the ones used in California are outdated, slow, and costly. Yet they are still being widely used by many states,” said CAGW President Tom Schatz. “CAGW supports the investment necessary to improve the use of technology by all levels of government. Unfortunately, legislators in Washington, D.C. and state capitals have not provided sufficient oversight or funding for these projects.”

While The Sacramento Bee article noted that California has “tried to modernize its payroll system throughout the past decade,” it cited delays by the legislature as the underlying cause of the lack of investment. The upgrades will now cost $177 million just for the payroll system.

Used by major corporations, hospitals, financial institutions, as well as government to store and process data, mainframe systems require expensive upkeep. California is not the first state to experience problems with its old computers. In 2007, Virginia experienced a hardware failure in one of its mainframes that impacted several agencies, most notably the Departments of Motor Vehicles, Social Services, and Taxation.

Some states have modernized their equipment. Recently, the courts system in Texas switched from old-fashioned mainframes to a network-based electronic filing system. Now, court clerks and attorneys can themselves electronically file and view documents, saving time and potentially millions of dollars.

“The use and costs of legacy systems, particularly in state governments, deserves further study and analysis,” continued Schatz. “An aging IT infrastructure and a graying workforce to support it pose significant challenges for policymakers. State leaders must take action on this issue.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.