A technical demonstration before the Sarasota County Commission on June 30 led to a discussion of what to do with commercially viable county creations. About 20 cities and counties in the United States use a county-produced software package called GovMax, and they pay for the privilege.
The software was developed after county officials asked private vendors to demonstrate their wares and found them wanting. It could be on the verge of widespread distribution.
But before starting a marketing department and customer service division, county administrators wanted to demonstrate their product and ask commission guidance about the future.
"It’s an awkward place for us," said Deputy County Administrator Dave Bullock. "We’re trying to figure out what to do in the next 12 months.
"You own it," he told the commission. "It is a Sarasota County product."
WHAT’S A GOVMAX?
Governments levy taxes to raise money to spend on services provided by employees supporting policies created by elected officials. Linking these five factors – taxes, budgets, services, employees and policies – is impossible in a two-dimensional spreadsheet.
While business software exists to link multi-dimensional factors, none is targeted to government needs. Governments, for example, are not designed to generate profits. Thus, the concept of "contribution to overhead and profit" – so essential to private industry – is unnecessary for government management.
In similar fashion, business-oriented software is unconcerned with environmental or social consequences to policy. Finding no solution in the business world, in 2000, Sarasota County set out to devise a software suite that could simultaneously account for budgets, policy goals, personnel performance and strategic plans. It became known as GovMax.
The Information Technology Department has continued to refine it; it is working on version five. The county expects to transition to that version in October for the start of the 2010 Fiscal Year.
However, five other local governments are already using version five, and 13 others are using version four. In total they are paying the county about $800,000 per year.
County Chief Information Officer Bob Hanson estimated it has cost the county about $2 million to develop the software. "Return on investment is about two and one-half years, and Sarasota County gets to use it for free."
WHO’S MINDING THE STORE?
Thousands and thousands of local governments are potential customers for GovMax. To date, marketing has been by word-of-mouth at various conferences and gatherings. Wayne County, Mich., is a user, for example; it has a population of 2 million.
But if interest picks up, the county could find itself vending a hot product in competition with private industry giants SAP and PeopleSoft, which offer somewhat similar programs to for-profit entities. "We are by far the cheapest," said Hanson.
Bullock suggested four possible solutions for the future: "You could continue as now. You could spin it off as a non-profit, while spreading the costs. You could license it. Or you could sell the application to a private company."
The GovMax program is totally integrated into Sarasota County government. Every line item in the budget is connected via the program to policy goals; strategic plans; past, present and proposed budgets; priorities; levels of service; and personnel evaluations.
Any change in a proposed budget is flagged by the program with a need to link the spending to policy and goals.
"I have no discomfort with the county being entrepreneurial," said Commissioner Nora Patterson. "We should try to make something of it. It defrays taxes. It has a lot of potential."
"This is a big policy decision," said Bullock. "We’re not good at marketing. As it grows, we’ll need customer services."
County Clerk and Auditor Karen Rushing raised a philosophical question: "If you spend money benefiting another jurisdiction, why did you use the money for somebody else?" she asked.
Commissioner Joe Barbetta wanted more information on costs and revenues. "We should be getting as much out of it as we put into it. We need more documentation," he said. "It’s hard to believe until I see the true costs, including indirect costs."
Staff agreed to furnish development costs and revenues.
Commission Chairman Jon Thaxton turned to Rushing and County Attorney Steven DeMarsh. "If we get a green light from our lawyer and our comptroller, then OK."
July 19th 2009 - 10:29PM