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Can the Illinois CIO Move Away from a Chargeback Model?

At NASCIO, Illinois CIO Sanjay Gupta says he has won direct appropriations for tech from state officials. He wants to move away from the chargeback model eventually, which he says will result in better services.

Sanjay Gupta
Illinois CIO Sanjay Gupta
Government Technology/David Kidd
NEW ORLEANS — There is no technology without money, and in Illinois, CIO Sanjay Gupta is going against the grain when it comes to funding.

At the National Association of State Chief Information Officers (NASCIO) 2024 Annual Conference in New Orleans, Gupta, who won official appointment of his job in May, said state lawmakers are making direct appropriations for the state’s technology needs.

As he sees it, that’s a path toward getting away from chargebacks within the next few years.



That matters because the vast majority of states use at least a partial chargeback model to fund public-sector tech needs, according to a NASCIO survey from last year. That model, of course, means billing state agencies for the IT services they use.

More than half the respondents to that survey used a funding model based on state general funds, with agency assessments, federal funds and data sales also comprising tech funding sources.

Gupta is bullish about the change he is promoting.

“It makes us more efficient in our ability to deliver services,” he told Government Technology at the conference. “Once we deliver better services to our client agencies, I believe it will help us deliver better services to state of Illinois residents.”
Thad Rueter writes about the business of government technology. He covered local and state governments for newspapers in the Chicago area and Florida, as well as e-commerce, digital payments and related topics for various publications. He lives in Wisconsin.
Noelle Knell is the executive editor for e.Republic, responsible for setting the overall direction for e.Republic’s editorial platforms, including <i>Government Technology</i>, <i>Governing</i>, <i>Industry Insider, Emergency Management</i> and the Center for Digital Education. She has been with e.Republic since 2011, and has decades of writing, editing and leadership experience. A California native, Noelle has worked in both state and local government, and is a graduate of the University of California, Davis, with majors in political science and American history.