Budgeting for technology in municipalities requires strategic planning and prioritization, according to Marc Pfeiffer. In a recent guide, he outlined essential steps for developing an effective technology budget process.
Pfeiffer emphasizes the necessity of having a technology plan: "Without a usable plan, you can’t manage your agency’s technology needs, resources, and risks." He suggests seeking advice from tech experts or AI chatbots for creating a local government technology plan tailored to specific agency sizes.
He advises involving governing body members early in the planning process to avoid surprises and ensure consistent decision-making. The importance of maintaining an inventory of current hardware and software is highlighted, alongside establishing schedules for equipment replacement and software updates.
Identifying risks through periodic assessments is crucial. "Your cyber insurance carrier may be able to help with this," Pfeiffer notes. Understanding these risks helps organizations weigh costs against potential consequences.
The guide stresses setting priorities by balancing needs and costs with urgency on a timeline. Decision-making should involve senior management, finance management, technology advisors, governing body representatives, risk managers, and users.
Pfeiffer also provides seven keys to successful tech budgeting. Aligning tech planning with budget cycles and setting budget limits early are among his recommendations. He warns against surprising IT departments with incompatible purchases by clarifying expense responsibilities between central IT and departments.
Cybersecurity costs should meet or exceed policy requirements as they are now considered essential services akin to utilities or insurance. Exploring funding options like grants or co-op purchasing contracts can also alleviate financial constraints.
Finally, Pfeiffer encourages making these practices routine: "Make these habits a routine and review your tech plans every year."
