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2013-2015 Budget Guidelines

PDF of 2013-2015 Budget Guidelines Memorandum

The Information Technology Department (ITD) has projected service rates for the 2013-2015 biennium. The rate schedules and a brief description of the services for Data Processing, Telecommunications, and Micrographics may be found on the ITD website at www.nd.gov/itd/billing. Rates that are highlighted in bold are the rates that changed from the 2011-2013 budget instructions. 

Each biennium ITD looks at the need to adjust the rates for the services provided. Because it is difficult for agencies to adjust their funding once the budget has been approved, every attempt is made to keep ITD rates from increasing during the biennium. The following is an overview of the rate changes for the upcoming biennium.   

The service rates for professional staff will increase to cover the increases projected for salaries and health insurance premiums. Most of the general hosting rates will increase to cover increases for professional staff, equipment, data center expenses and software maintenance. Network rates are expected to increase slightly with rates for endpoint connectivity decreasing. Most rates for telephone services are expected to remain steady with long distance rates decreasing.

The major changes ITD will implement for the next biennium are described below.

Please review the associated rate schedules and description of services. If you have any questions, please feel free to call Dan Sipes at 328-4317 or Greg Hoffman at 328-4006. Thank you.

Enterprise Project Management Office

Agencies with large projects will be billed a one-time fee to cover the costs associated with the Enterprise Project Management Office and large project oversight requested by the Legislature.

ConnectND

ITD bills each agency for the cost of ConnectND (the PeopleSoft financials and human resource applications). Each agency has a ConnectND fee on their data processing bill each month. The amount each agency needs to budget is as follows:

  • $12.89 per month for each legislatively authorized FTE identified in the 2011-2013 Legislative Appropriations book.
  • $8.08 per month for every $1 million appropriated to the agency as identified in the 2011-2013 Legislative Appropriations book.

Software Development Toolset Upgrades

The ITD Software Development Division supports many software development tools and languages. ITD upgrades to new versions of our tools and languages on a regular basis. This prevents obsolescence of customer applications. Agencies should budget for upgrades to their existing applications. The Budget Guidelines for Toolset Upgrades document includes initial estimates of the average time required to modify agency programs due to toolset and language upgrades. Agencies should contact their ITD Team Leader if they have questions specific to their agency.

Network Rates and Technology Fee Counts

Endpoint network rates will decrease due to projected cost decreases for the STAGEnet backbone and circuit costs. While rates for existing circuits will decrease agencies requiring more bandwidth at existing endpoints will want to contact ITD to determine the cost impact of upgrading bandwidth at a specific location. 

Base connectivity for state agencies with remote locations on STAGEnet is currently 5 Mbps of bandwidth with additional bandwidth available for additional cost.  Agencies that have any broadband connectivity (DSL, cable, wireless, satellite, cellular) are reminded that all connectivity should be purchased through ITD and has an associated broadband add-on charge in addition to vendor cost of the broadband connection. The add-on rates will be decreasing in the 2013-2015 biennium. The premium  add-on rate applies to locations that require network to network connectivity and comes with extended support hours. The basic add-on applies to locations that have six or less connections and do not require the network to network connectivity or extended support hours. The residential add-on applies to single person locations that do not need network to network connectivity or extended support hours. 

The Technology Fee rate will increase from $49.00 to $49.50 with the usage metric based on the number of legislatively authorized FTE identified in the 2011-2013 Legislative Appropriations book. A small number of agencies will see an upward adjustment if they have their own server farms or have significantly more computers than FTE counts. A few agencies run large 24x7 operations and these agencies will see a downward adjustment to reflect this type of shift work. ITD will notify affected agencies and finalize the Technology Fee metric for those agencies by the end of May 2012.

Storage Rates

ITD storage rates are expected to remain steady for the upcoming biennium. While the current rates are less than projected for the 2011-2013 biennium, agency usage is trending higher than projected and agencies should review their projected storage growth to determine any associated budget impact. Agencies that are currently in the On Demand storage pricing tier and have significant storage growth projections should meet separately with ITD to determine if the Dedicated storage pricing tier will help to mitigate the cost impact of their storage growth.

General Hosting Rates

Most of the general hosting rates will increase to cover increases for professional staff, equipment, data center expenses and software maintenance.  The average rate increase in these services is about 13%. Agencies should review the detailed Data Processing rate schedule to determine increases for specific hosting services.

Legacy Application Surcharge

Several agencies are running older versions of SQL, Oracle or Websphere applications that have not been upgraded to a currently supported version.  These agencies will need to upgrade those applications to current supported versions of these software products by January 2014. The minimum versions currently supported are SQL 2008, Oracle 11g, and Websphere 6.1. Agencies on older versions of these software products after January 2014 will see a minimum surcharge of 25% to cover the operating costs of the legacy hosting environments.

Enterprise Forms

The cost of enterprise forms infrastructure is now included in the Technology Fee. There will no longer be a per form fee for state forms.

Rightfax Rates

Some agencies have applications that generate a significant amount of incoming and outgoing fax traffic but are only using a single generic account.  These accounts will be reviewed and charged a tiered monthly Rightfax application fee based on the amount of usage.

Enhanced Display Telephones

Currently 5% of our installed phone base is the Enhanced Display Phone (listed as Speaker Phone on the monthly bill). With the continued conversion to Voice over IP agencies will no longer have this as a phone option. Agencies may choose to deploy a Basic Phone which is $3 less per month than the Enhanced Display Phone or they may choose a Professional Phone which is $2 more per month than the Enhanced Display Phone.

Category 3 Wiring

Some agencies still have old Category 3 network cabling in their locations. This wiring does not support some of the higher speed network technologies that the State is deploying. Agencies with Category 3 network cabling should budget to upgrade their cabling in the upcoming biennium. ITD will try to contact agencies that have known locations with Category 3 network cabling by the end of May 2012.

Micrographics Rates

ITD will continue to coordinate micrographics services in state government but has outsourced the actual processing of microfilm due to equipment costs coupled with the declining use of microfilm in state government. Agencies using Micrographic services should contact ITD to determine what rates to budget for the 2013-2015 biennium.

 

What Our Customers Are Saying

Thank you very much for the quick turnaround!

Grand Forks County Auditor
March 25, 2014
 
 

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