Smart, fast, efficient technology is essential to improve our state’s tax collection system.
Lawmakers understandably have concerns about the state Department of Taxation’s ongoing efforts to modernize its tax system, given their own user experiences and the spotty history of past state IT implementations (“Tax system modernization complaints halt additional funding,” Star-Advertiser, June 18).
The environment today has evolved as a result of painful lessons learned. Now, our state chief information officer (CIO) is allowed greater oversight and we have a more tightly controlled procurement and deployment safeguards. Moreover, any issues with the Tax System Modernization project, or TSM, should be kept in perspective, considering the scale, complexity and multi-year deployment of the project.
Coincidentally, the governor just signed into law Senate Bill 850, which requires departments to conduct independent verification and validations (IV&V) of IT projects, like TSM, which the state CIO determines to be sufficiently costly and complex.
Thus far, the CIO’s track record has been solid, implementing a time-saving digital signature process, partnering with the University of Hawaii to relocate backup systems from the state’s aging data center downtown, and successfully leveraging economies of scale to negotiate best-value agreements between the state and software and IT service providers.
Knowing that the CIO’s office, the Office of Enterprise Technology Services, will be collaborating with the Department of Taxation, going forward, is reassuring.
The problems identified in the article appear to be primarily related to webforms not being entirely user-friendly and additional security steps required of business filers to verify identity (which is reassuring in this age of cybersecurity). But the heart of the system, the filing and payment component, is said to be working as intended.
Nevertheless, concerns about a range of problems prompted lawmakers to withhold the funds requested by the governor for the project’s future phases and to pass House Bill 1414 requiring an audit of the modernization project, which reflects prudent oversight.
The Legislature has the tough task of exercising fiscal responsibility, while ensuring needed enhance- ments move forward to improve the accuracy, speed and efficiency of reporting and collecting taxes, activities vitally important to the operations of the state. I’m certain our elected officials know the longer systems are neglected, the more it costs to bring them up to current standards.
Our legislators are wise to deliver a strong warning, while appreciating that the judicious investment of resources will yield results many times the investment, with proper oversight.
The state Department of Taxation’s necessary, albeit complex, implementation of a new computer software system also falls within a bigger picture, the long-term benefits of IT modernization and the need to continue support for the transformation of state government into a more transparent, efficient and accessible provider of services.
The improvement of technology and business processes throughout our state departments remains essential for all public stakeholders, as well as for increasing the productivity of those working within government. Support from the Legislature and the governor, along with critical evaluation and support from ETS, can ensure the outcome we want: the improvement of tax services for all Hawaii’s people and businesses.
Christine Mai‘i Sakuda is executive director of Transform Hawai‘i Government.