Citizens, most of who are changing spending patterns and lifestyles as a result of tighter budgets and higher taxes, are driving with great momentum the latest transparency trend in states and municipalities. What is crucially important is that citizens are watching with high scrutiny not only their own investments but those of their government. For most state and local officials, the feeling is mutual. Governors, Legislators, Mayors and City Council members, through executive action and legislations, are now more aggressively supporting the creation of spending transparency websites to track in detail how responsibly and efficiently tax moneys are being spent. Although the level of transparency proposed varies among states and localities, the return on investment for the creation of such tools is estimated in millions, if not, billions of dollars. Savings which are much needed in times of fiscal uncertainty.

The trend caught on at the state level following the Federal Funding Accountability and Transparency Act of 2006. The Act created USASpending, a transparency website that tracks federal contracts and grants. Currently, Texas - Where The Money Goes, Kansas - KanView, Missouri - MAPYourTaxes and South Carolina - Spending Transparency track agency purchases drilling down to the vendor, service category, amounts disbursed and even contract number. As of February of FY2008, Texas, Missouri and South Carolina spent $311 million, $96 million and $149 million, respectively, in IT and Telecommunication purchases. Kansas spent approximately $165 million in FY2007 for the same purchases.

Nebraska - Nebraska Spending and Oklahoma - Open Books, currently offering limited spending data, will be updated their websites with specified data on agency contracts and vendor information. Illinois - Expenditure Analysis and Alaska - Checkbook Online provide tools that run queries of services purchased by agency, amounts disbursed but only Alaska's drills down to vendor information. Checkbook Online confirms that for the first six months of FY2008, Alaska spent approximately $19 million in IT and Telecommunication services. Legislators in both states are currently proposing for a comprehensive transparency website to become a permanent law in their states. Currently, Hawaii, Minnesota and Lousiana have laws to create transparency websites by early 2009.

In Arizona, more comprehensive transparency legislation has started to pick up interest. If approved, voters will decide on a Constitutional Amendment to create a transparency website disclosing spending transactions of the state, its counties, cities and towns for all payments using checks, credit or debit cards. Although neither the cost nor the savings are known at this time, one thing is for sure, greater transparency will require greater investments, which will ultimately turn into greater savings.

The costs of transparency tools are reported to be relatively inexpensive given the projected savings to the states. In addition, it is important to note that through the use of existing resources states could also attain transparency. In Texas, Where the Money Goes has already saved the Office of the Texas Comptroller about $2.3 million. It is reported that much of the savings came by consolidating similar contracts, thus, eliminating double-billing. In Kansas, recent press releases report that KanView cost the state $40 million. However, the investment is expected to translate into $1 billion in savings. In Missouri, the state did not use any additional appropriations for the cost of MAPYourTaxes. Shortly after its implementation, Governor Matt Blunt confirmed the state only used its existing staff and resources to create its transparency website. Therefore, the argument of a "costly" initiative can be perceived as only an excuse, especially when states have already showed the way.

Transparency legislation has also received great support by local officials. Just last week, Howard County in Maryland passed final action on its Transparency Bill. The bill requires the County Purchasing Officer to develop a website tracking county contract awards. Several municipalities are currently discussing similar legislations and many more are expected to follow.

Currently, almost half of all state legislatures are considering spending transparency laws. Developments on these bills and IT spending data gathered from transparency websites can be tracked on INPUT's State Profiles