The 13th Annual Governing Live! Outlook in the States 2008 was held this past week in the nation's capital. IT vendors, Governors, Chief Information Officers and Budget Analysts attended the conference to hear what lies ahead the localities and states in 2008. For the most part, the main message and feeling from the conference was one of "doom and gloom". The horizon for Cities, Counties and States is pretty bleak the next couple of fiscal years.

The first day consisted of experts discussing the issues and trends for our nation's cities and counties. Don Borut, Executive Director of the National League of Cities kicked off the first panel with his thoughts on 2008 for cities. Major issues affecting cities in 2008 range from the unraveling of the intergovernmental system, economic downturn, housing foreclosures and predatory lending, immigration, transportation/infrastructure, energy/environment/sustainability and public safety/safe neighborhoods.

Larry Naake, Executive Director of the National Association of Counties commented on the outlook for the counties. Issues looming for counties are very similar to what is affecting our cities: sub-prime loans and the housing crisis; infrastructure challenges; illegal immigration; climate change; election reform; and an antiquated tax system.

INPUT's Take

• With the recession at its beginning stages, localities are feeling it the most and taking the biggest hit. IT spending and investment is projected to be relatively flat with some decreases across the board in States with huge budget deficits (Florida, Michigan, Arizona, and California). Cities and Counties will be asked do more with less. Less discretionary funding and reductions in staff will lead to more consolidation and a big push for regional approaches to help offset the lack of resources available.