E-gov spending to continue declining in 2010

Agency spending on e-government and line of business initiatives has dropped by more than $35 million since 2008.

The Office of Management and Budget says agencies will spend $121 million to $124 million on e-government and LOB projects this year, down from $138 million in 2009 and $161 million in 2008. OMB issued its latest report to Congress on the benefits of e-government. Congress requires this annual report as part of the appropriations law in order to better understand where agencies are spending money and what they are getting from it. The 337-page report details funding by agency and bureau, funding by project, current status of all the initiatives and the risks for each effort. There are several reasons for the decrease in funding, including OMB's decision not to include fee-for-service spending, and the fact that many of the initiatives have "graduated" to agency run, government-wide programs.