I.T.--big investment, bigger returns: in many cases, information technology can reduce the costs of government operations, as well as capture additional revenue.

This may not seem the ideal time to expand government investments in technology, but states can do it without tapping the general fund and in the long run save a bundle.

Information technology (IT) makes government more productive by automating routine tasks, cutting the costs of processing mail and checks, and storing and retrieving data. And Internet applications, which permit citizens to renew licenses, apply for benefits and access information online, make government more convenient while reducing the need for staff.

One resource for state lawmakers is Paul W. Taylor's white paper "Pay IT Forward: Doing the Public's Business with Digital Technologies While ...

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