Budget Worries Prevent More IT Modernization, Survey Says
Route-Fifty, Monday, June 23rd, 2025
State and local leaders want to modernize their legacy systems, but uncertainty over federal funding is stymieing their progress, an EY survey shared exclusively with Route Fifty found.
The U.S. Department of Labor's cancellation of grants to help states modernize their unemployment systems stands as an indicator for many of those governments of how federal funds for state technology projects will likely dry up. And based on a recent survey, budget worries are weighing heavily on state IT leaders.
A survey by EY shared exclusively with Route Fifty before release found that 56% of tech leaders said reducing costs is a top priority, while 54% said cybersecurity is their top goal for the next fiscal year. Modernization came in as a lower priority, as 47% said it was their most important goal for the year.