Madison — An effort to consolidate state computer servers has cost seven times as much as originally estimated, even though the project is far from over.
Consolidating servers so far has cost $90.9 million, far above the original estimate of $12.8 million, according to a sweeping report Thursday by the Legislative Audit Bureau. The project is supposed to wrap up next summer.
The computer project is part of a broad effort to streamline state government launched by Gov. Jim Doyle in March 2005 that has often come up short.
Under one provision of the Accountability, Consolidation and Efficiency, or ACE, program, the state was to sell $40 million worth of land and buildings over four years but actually shed only $9.6 million in property.
“We just don’t have the money and to waste this much money is just unbelievable,” said Sen. Rob Cowles (R-Green Bay), a member of the Joint Audit Committee who requested the audit. “This thing was depicted in a political way with totally unrealistic expectations.”
Deputy Administration Secretary Dan Schooff said the state has addressed problems with the server consolidation after a 2007 audit first highlighted problems. He also said the administration has identified almost twice as much in savings from new purchasing contractors than auditors found.
The effort was “less successful than we hoped, but there was success,” Schooff said.
The ACE program was to save $200 million over four years by selling the excess land, merging and improving computer systems, and centralizing purchasing and human resources functions. But auditors could not say whether the ACE initiative has saved cash or cost taxpayers money, though they provided a litany of numbers that highlighted costly problems with the effort.
The server consolidation and two other troubled computer projects have cost $113.5 million so far. One project was completed, but only after facing cost overruns; the third project was put on hold after $9.1 million was spent.
The state also spent $15.2 million on four consultants who advised the state on how to make government more efficient. Those contract costs offset any savings the state may have realized, auditors noted.
There were some savings. In addition to the $9.6 million in property sales, the state saved $18.9 million through mid-2008 with new purchasing contracts. The administration says the purchasing savings were $36.9 million.
Further, 77 state jobs were cut as part of the streamlining; auditors did not put a dollar figure on those savings. However, some of those functions have been assigned to contractors and temporary workers, costing at least $31.6 million.
Last Updated ( Monday, 21 September 2009 )
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