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Budget shortfall delays computer upgrade

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Friday, January 13, 2012

The Oregon Department of Revenue's planned $92 million computer upgrade is on hold because the state can't afford the $13 million in startup costs.

“Our judgment was this project was not going to compete very well against human services programs, public safety programs and other places where cuts already are being contemplated,” [state Chief Operating Officer Michael] Jordan said. “It’s really a cash-flow issue and a set of priorities the Legislature is going to have to be dealing with in February.”
The computer system is responsible for processing $7 billion a year and 94 percent of Oregon’s general fund revenue, but officials are not confident in its effectiveness.
The agency’s ability to collect taxes rests on a “myriad of disparate, aging software applications and databases,” according to a 96-page business analysis the Department of Revenue produced in 2010.

Read more at The Bulletin.

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