This section addresses item (A) of ACT NO. 185.
The following table summarizes expenses from fiscal years 1993 to 1997. There is no activity prior to FY1993 that could be construed to be related to "GOVnet." It is important to note that not until FY1996 were finances segregated into the areas that could be identified as administration, state network infrastructure, and Internet access. Therefore, figures provided for years before 1996 are not useful for comparison. Figures that could not be segregated at all are listed as "Not Categorized".
Summary of Operating Expenses
|
FY |
1993* |
1994* |
1995* |
1996 |
1997 |
|---|---|---|---|---|---|
|
Administration |
- |
- |
$125,581 |
$265,712 |
$284,777 |
|
State Network |
- |
$233,438 |
$438,584 |
$66,797 |
$94,473 |
|
Public (Internet) Access |
- |
- |
- |
$37,000 |
$37,000 |
|
Not Categorized |
$1,128,900 |
- |
- |
$346,185 |
$413,000 |
|
TOTAL |
n/a |
n/a |
n/a |
$715,694 |
$829,250 |
* Estimates
The fiber-optic network, which is a core of the current network, evolved out of the HRMS project. Fiscal 1993 estimates [ Klein, Stephen A., Duncan W. Goss, Donald E. Dickson, Jr., "Study of Vermont State Data Processing System Purchases and Vermont State Information Systems Planning and Design," Joint Fiscal Office and Legislative Council, December 29, 1993, p.7.] of the costs not attributable to HRMS are $1,128,900. From a financial perspective, these are sunk costs, both operating and capital, and not comparable to any future expenses.
During fiscal years 1994 and 1995 administration of the network and financial segregation of its revenues and expenses were in transition. For those two fiscal years it is only possible to obtain estimates of the appropriate financial figures. The table below contains these estimates.
FY 1994 and 1995 Revenue and Expenses
|
FY '94 Network related (estimated) |
FY '95 Network related (estimated) | ||||||||||||||||||||||||||||
|
Revenue (Actual) |
|
| |||||||||||||||||||||||||||
|
11% Surcharge |
n/a |
$412,000 | |||||||||||||||||||||||||||
|
CIT charge |
n/a |
110,000 | |||||||||||||||||||||||||||
|
Other (passthrough) |
n/a |
38,000 | |||||||||||||||||||||||||||
|
Total |
$560,000 | ||||||||||||||||||||||||||||
|
Expenses (Estimated) |
| ||||||||||||||||||||||||||||
|
Personal services | |||||||||||||||||||||||||||||
|
| n/a
| $125,581
| Operating
|
|
|
| n/a
| 112,831
|
| $233,438
| 284,578
|
| n/a
| 18,105
|
| n/a
| 17,560
|
| n/a
| 5,510
| Total
| n/a
| $564,165
| Excess / (Deficit) (Estimated)
| n/a*
| ($4,165) |
* [Since no revenues could be segregated, it is not possible to guess whether an excess or deficiency may or may not have occurred.]
Notes
1. FY1994 was the partial year in which GOVnet and the surcharge was approved by IRMAC (Information Resource Management Advisory Committee). The surcharge was not implemented until July 1, 1994 – the beginning of FY1995. Therefore, there was no revenue and no itemized expenditures for FY1994.
2. The GOVnet revenue and expenditures for FY1995 were embedded in the CIT division budget and were not set up in a separate account until FY1996.
3. In fiscal years 1994 and 1995 there was no budget for GOVnet. The revenues and expenses are estimated from historical actuals.
Beginning in FY1996, revenues and expenses were itemized for the network support staff, the statewide network infrastructure and the Internet application. The current budget line items are described in the Budget Line Item Description table on the next page.
The actuals from FY1996 and the budget for FY1997 are included below.
FY 1996 and 1997 Revenue and Expenses
|
FY 1996 GOVnet Actual (submitted to Auditor) |
FY 1997 GOVnet Budget | |
|
|
|
|
|
Revenue |
|
|
|
Government users |
$588,310.77 |
$555,000.00 |
|
K-12 Schools |
97,921.35 |
225,000.00 |
|
Public libraries |
13,916.59 |
29,250.00 |
|
Other |
29,250.90 |
20,000.00 |
|
Total |
$729,399.61 |
$829,250.00 |
|
|
|
|
|
Expenses |
|
|
|
Personal services |
$230,297.75 |
$242,777.00 |
|
Operating Expenses |
35,413.91 |
42,000.00 |
|
Leased Circuits |
346,185.32 |
413,000.00 |
|
Equipment |
66,797.30 |
94,473.00 |
|
Internet License |
37,000.00 |
37,000.00 |
|
Total |
715,694.28 |
$829,250.00 |
|
|
|
|
|
Excess / (Deficit) |
$13,705.33 |
$0 |
Notes
1. FY1996 revenues for K-12 schools and public libraries are partial revenues. The legislation allocating funds for distance learning was passed in calendar 1995 for FY1996. Deployment of the necessary telecommunications equipment did not reach all schools and libraries, and was not available for a full year at those schools and libraries where it was deployed.
2. FY1997 budget is an eleven-month budget for revenue from government users and expenses for leased circuits. This change is a one-time change due to internal State accounting processes. After 1997 it will be a 12 month budget.
Budget Line Item Description
|
Line Item |
Description |
Notes | |
|
R E V E N U E |
Government users |
State employees |
• CIT $110,000 (FY1996)
|
|
K-12 schools |
Elementary and secondary schools, approximately 250 |
• $250/year dial-up service per line
| |
|
Public libraries |
Approximately 200 public libraries |
• $250/year dial-up service per line
| |
|
Other |
Passthrough government Information Technology additional services | ||
|
E X P E N S E |
Personal services |
Salary and fringe, for (currently) four employees, not including CIO | |
|
Operating expenses |
Training, offices, administrative overhead | ||
|
Leased circuits |
Digital services |
• The private State network is in year 6 of a 10 year lease for digital services with NYNEX.
| |
|
Equipment |
Telecommunications equipment and technology supporting only the private GOVnet network. Dial-up communication servers are shared with K-12 | ||
|
Internet license |
Internet license from MCI, providing a T1 circuit, router, and backup Directory Name Services. |
The capital construction bills for sessions 1994, 1995 and 1996 included monies for "Information Infrastructure" [ ACT NO. 233 of the Acts of the 1994, Sec. 12. (b)] , "Information Technology" [ ACT NO. 62 of the Acts of 1995, Sec. 2a] and "GOVnet." [ ACT NO. 185 of the Acts of 1996, Sec 2. (c)] The total of the allocated monies for each year are listed in the following table. That portion of the line item capital cost designated for network expansion - either administration or infrastructure - is identified as "GOVnet" capital costs. For example, the FY 1995 capital allocation of $300,000 for distance learning was not used for any network expansion or network administration, and therefore not attributable to GOVnet.
Summary of Capital Costs
|
Description |
FY 1995 |
FY 1996 |
FY 1997 |
"GOVnet" portion |
|
Distance learning |
$300,000 |
$0 | ||
|
Libraries convert to GOVnet; Schools connect to GOVnet; Support dial-up access |
$978,000 |
$0 | ||
|
Support network access |
$250,000 |
$0 |
There are no other pre-existing capital bills with monies related to network administration, expansion or infrastructure.
A review of federal funding of distance learning was completed to identify any other funds which may have supported infrastrucuture development.
Vermont has received grants from several federal organizations to support distance learning. None of these grants has been administered by a State agency, nor has the network administration or infrastructure directly benefited from one of these grants. The following partial list includes grants that have been cumulatively funded or (applied for) since 1994.
|
Department |
Grant |
Recipient |
Amount |
|
US Department of Agriculture |
Agricultural Connectivity Grant |
Center for Rural Studies, UVM |
$100,000 |
|
US Department of Agriculture |
Rural Business Enterprise |
Vermont ETV |
(applied for) $490,000 |
|
US Department of Agriculture |
REA Distance Learning Grant |
Grand Isle Supervisory Union |
$350,000 |
|
US Department of Commerce |
TIIAP [Telecommunications Information Infrastructure Applications Program, US Department of Commerce] |
Fairfax Community BBS |
$3,962 |
|
US Department of Commerce |
TIIAP |
Castleton State College |
$54,192 |
|
US Department of Commerce |
TIIAP |
Vermont Technical College |
$91,445 |
|
US Department of Commerce |
TIIAP |
Vermont Public Radio |
$49,105 |
|
US Department of Commerce |
TIIAP |
Critical Language & Area Studies Consortium, Inc. Brattleboro |
$70,000 |
|
US Department of Agriculture |
Rural Business Enterprise |
Vermont Technical College |
$1,300,000 |
FY1996 is the first year in which "GOVnet" revenues and expenses were separately appropriated, and segregated into network, administration and Internet service. There were no mechanisms in prior years to capture itemized revenues and expenses directly related to network services. Services provided to state employees (network administration) continue to be undifferentiated from services provided to Internet users. Comparison of expenses to prior years’ expenses cannot be done on a line item basis.
Capital costs have been allocated for various distance learning initiatives. Although some of the funds have been administered through the network administration group, the funds were not directly used for network administration or development of the state’s network infrastructure. Total cumulative capital costs attributable to GOVnet are $0.