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The Utilization of Information Systems Technology in State Financial Management: An Empirical Assessment

Many of the budgets of state governments are larger than those of a number of Fortune 500 companies. Budgeting offices in the executive branches of state governments are increasingly utilizing a wide variety of information systems technologies to manage and track funds, engage in financial planning, and undertake sophisticated financial analysis. These offices are the "nerve centers" for financial planning, evaluation, and management of funds for state-level programs and policies. This report explores two distinct issues within the context of technology and management in state budgeting offices. The first is an examination of the role that technology plays in the organizational structures and practices of these offices. In this regard, the thirty-eight budgeting offices in the sample demonstrated a comprehensive pattern of information systems use that compares favorably with technology use in other levels of government and reflects the multiple roles that public managers in these offices must play. The second issue is an assessment of the association between environmental, organizational, and technological factors, and the adoption and utilization of information systems technology. Surrogate variables for each of the three theoretical factors were found to be associated with increased adoption and use of technology in the offices surveyed. An argument is made for a theoretical perspective on the adoption and utilization of technology that attempts to integrate each of these three perspectives.