Strategic Plan Fiscal Impact
The City of Baltimore currently invests 2.5% of its operating budget, or about $65 million, on information and technology (IT). Yet IT enables and supports services and operations funded by the other 97.5%.
BCIT compared the City of Baltimore’s IT budget against industry benchmarks for similar-sized State & Local Government (SLG) entities. The results show that the City of Baltimore invests proportionally less on IT than most of its peers.
- To match average SLG industry benchmarks, the city’s annual IT budget would have to increase to the $102 million - $122 million range.
However, the increased investment would only raise the city to average spending levels. Given the current state of IT in the city, the risk of not increasing the investment to levels over the industry average is tremendous and necessary to both catch-up and expand the infrastructure and capabilities outlined in this plan.
- To match the 75th percentile SLG industry benchmarks, the city’s IT budget would have to increase to the $128 million - $156 million range.
As this strategy is implemented, the cost of specific initiatives and investment opportunities will become clearer. Using industry benchmark data for budgetary planning purposes, the city should plan a baseline IT budget in the average benchmark range, with increases over the next five years up to or above the 75th percentile range. This is necessary to implement the reorganization, digital transformation, and modernization outlined in this strategic plan.