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Revamping GovTech: A Call for Modernization in Government Systems

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For many years, the political landscape has grown increasingly divided, particularly influenced by our 45th president, leading many to feel that rational discourse is nearly impossible. However, there is a point of consensus across the political spectrum: state governments are wasting considerable resources maintaining antiquated computer systems. This issue is arguably the most critical aspect of ensuring effective governance and a well-organized society in today's digital era. When managed correctly, technology serves as a backbone for government operations, facilitating everything from renewing driver's licenses to filing taxes. Failing to revamp essential government infrastructure for the digital landscape puts every state, including New Jersey, at risk of major operational failures.

According to a report by the Government Accountability Office (GAO), the federal government typically allocates over $90 billion annually for information technology, primarily to sustain existing systems, including outdated ones. Among the 65 legacy systems analyzed, ten were flagged as critical for modernization, costing approximately $337 million solely for maintenance and operations. These systems were evaluated for their aging hardware, software, and code, as well as the significant security vulnerabilities they pose.

The Homeland Threat Assessment from the Department of Homeland Security, dated October 2020, highlighted that cyber deficiencies are as urgent as issues of cyberattacks, terrorism, and natural disasters. Since the pandemic began, the FBI has reported a staggering 300% rise in cybercrime incidents, with cloud-based attacks skyrocketing by 630% between January and April 2020. To illustrate, the average data breach now costs $3.86 million, the average time to identify a breach is 207 days, and the average duration of a breach from identification to containment is 280 days.

One of the most significant cyber-espionage events in U.S. history occurred in 2020, starting in March but only publicly disclosed on December 13. This breach, attributed to a foreign-backed hacking group known as Cozy Bear (APT 29) and linked to the Russian intelligence agency (SVR), infiltrated various branches of the federal government.

Examining Five Government Agencies and Their Outdated Systems:

  1. The Air Force's system for assessing aircraft readiness still utilizes COBOL, a programming language from the post-World War II era, which is rarely taught today. Consequently, the government faces increased costs to hire IT professionals familiar with this outdated language. The Social Security Administration employs COBOL for determining retirement benefits, requiring them to rehire former employees who understand this complex language. The Department of Justice and the Department of Transportation also rely on COBOL for essential functions.
  2. The Internal Revenue Service's master file for public tax assessments and refunds is based on "assembly language code," an obsolete programming language created in 1947. This system is notoriously labor-intensive and prone to errors, contributing to challenges in addressing refund fraud. It costs $13.6 million to maintain.
  3. The Department of Defense uses a 53-year-old backup system for transmitting emergency messages related to nuclear forces, which still operates on 8-inch floppy disks—an outdated storage format. The GAO reported that finding replacement parts is increasingly challenging due to obsolescence.
  4. An 18-year-old industrial control system at the Department of the Interior governs dams and power plants, relying on hardware that is no longer supported by its manufacturer, leaving it without security updates or bug fixes.
  5. Since 2011, the Department of Education has struggled to prevent unauthorized devices from accessing its network, managing to limit access to 90 seconds—equivalent to about an hour in cybersecurity terms. This window is sufficient for launching attacks or accessing sensitive data related to student loans.

The consequences of these outdated systems are tangible. Recall the 2018 incident in Hawaii, where residents panicked for 38 minutes over a false missile alert due to an employee's mistake on an outdated interface. The similar qualities of the flawed systems highlight the need for intuitive design, especially for critical functions. The takeaway is clear: many areas of government have yet to adopt new technologies that are both beneficial and user-friendly, and it's surprising that such incidents aren't more common.

As we continue to navigate the pandemic, reliance on legacy systems hampers government responses at every level. State labor departments are overwhelmed by unemployment applications, while federal banks faced challenges in processing loans authorized by the CARES Act due to vulnerabilities in the Small Business Administration’s online portal. Local governments struggled for months to upgrade their networks to support remote education for students and teachers. The reality is that even the most sophisticated IT infrastructures would face obstacles under the demands seen during the pandemic. However, most jurisdictions would be better positioned with modern systems utilizing cloud technologies and effective coding practices. Outdated technology is costly, difficult to maintain, and vulnerable. Research indicates that over 10,000 new malware threats emerge every hour, and outdated systems exponentially increase the risk of breaches.

Immediate Recommendations:

  1. Office of Information Technology: Establish a coalition of experts from both public and private sectors to address technological gaps across all state government branches. This office will oversee system upgrades, assess risks, and create guidelines for implementation.
  2. Revolving System Replacement Fund: Collaborate with IT working capital funds to develop a sustainable fund aimed at expediting system upgrades and software improvements, ensuring the government tech infrastructure is modernized.
  3. Cyber-Education Committee: Promote the formation of cyber education committees within each state agency, focusing on innovative coding languages and systems for public sector employees to learn at no cost.
  4. Universal Broadband Communications Infrastructure: Enhance connectivity through secure broadband networks reaching all neighborhoods and institutions, reforming the Universal Service Fund for better resource utilization.
  5. Protect Cyber Networks: Partner with the Federal Trade Commission and other federal agencies to enhance tracking of cybercriminals, ensuring academic and industrial networks remain secure.
  6. User-Driven Government: Develop a digital infrastructure model treating citizens as users or "customers," allowing for efficient data deployment and reducing the time required for upgrades and replacements.
  7. International Data Study: Initiate a comprehensive research project to analyze international data and technology systems, especially looking at Estonia, known for its advanced e-government initiatives.
  8. Institutionalize Change: Offer grants to counties and municipalities that effectively use technology to improve residents' lives and enhance governmental efficiency.

The pandemic has underscored the urgent need for government modernization of digital infrastructure. This issue transcends party lines and is crucial for fulfilling basic governmental functions in the digital age. Updating technology and adhering to cybersecurity best practices are immediate necessities. While it may be challenging for agencies to confront outdated systems, the associated risks should motivate a thorough overhaul. The cost of modernization pales in comparison to the financial fallout of system failures.

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