State and local governments rely on technology to deliver essential services, but too often, that technology is outdated, unreliable, or patched together over time. Over time, governments spend significant time and money fixing issues caused by aging infrastructure, end-of-life applications, and security vulnerabilities. This ongoing challenge is known as technical debt.
Over time, technical debt accumulates and agencies incur costs in the form of increased maintenance and development expense, increased risk of cyberattacks, and reduced service quality.
In this blog, we’ll outline five key strategies that municipal governments can use to reduce technical debt and build a stronger foundation for the future of digital government.
Antiquated infrastructure and fragmented systems slow down processes, cause frequent outages, and create data silos that hinder coordination between agencies. Technical debt also blocks innovations like AI-powered live chat functions and virtual town halls, leaving citizens with outdated support options, limiting them to phone calls or in-person visits. While these may have been accepted 15 years ago, they no longer suffice as the only channels an individual has for getting in touch with their local government officials.
In an age when people are used to having their needs met instantly, limited engagement options and lack of service delivery can quickly diminish public trust and satisfaction.
Technical debt can quietly drain government budgets as a result of costly maintenance and emergency fixes. Agencies may also find themselves locked into expensive vendor contracts. A prime example of this is occurring right now in the state of Colorado.
As of 2024, state officials estimated the state of Colorado’s technical debt to be at $465 million. Analysis found that 1 in 4 technical debt cases led to the introduction of even more technical debt, compounding costs over time.
The effects of technical debt, such as system failures, carry a steep price. According to Colorado’s findings, IT downtime for their state costs an average of $336,000 per hour. However, addressing technical debt can lead to significant savings. The state estimates that its Technical Debt Remediation Plan will save over $10 million annually while reducing its IT footprint by 12,000 square feet.
Governments relying on outdated software systems are at a significantly higher risk of cyberattacks. Weaknesses such as unpatched software, poorly coded APIs, and weak identity management create easy entry points. The rise of distributed teams working across multiple networks further increases the risk surface that attackers can exploit.
Conducting regular cyber risk assessments helps identify and address these vulnerabilities before they become major security breaches.
A structured framework to identify, prioritize, and address technical debt helps agencies remedy issues that have the greatest impact on government operations.
To effectively manage IT portfolios, local governments must maintain a detailed inventory of all systems, software, and infrastructure. This inventory should include the system’s age, maintenance costs, security vulnerabilities, and its compatibility with modern platforms. This type of catalog provides a clear picture of technical debt, helping IT leaders make proactive modernization decisions.
Effectively solving technical debt infrastructure challenges starts with input from those who use government systems daily.
Developers and IT professionals identify critical areas for remediation, agency employees highlight inefficiencies that disrupt operations, and citizen feedback pinpoints outdated technology affecting public services.
Engaging stakeholders at all levels ensures modernization efforts solve real-world needs.
Some government systems are more critical than others. High-impact, high-traffic platforms -like those used for law enforcement and financial management -must come first in any technical debt remediation plan.
Pro Tip: An 80/20 rule can be applied here:
Once technical debt is identified and prioritized at the state and local level, remediation can occur. Still, it requires a strategic approach that balances immediate fixes with long-term modernization goals.
These five strategies can help governments improve IT sustainably and efficiently.
By integrating agile methodologies with other development modalities, government agencies can push regular system updates and implement continuous monitoring to prevent technical debt from accumulating. IT leaders should establish cross-functional Agile teams that include IT, operations, and policy experts to ensure updates align with agency needs and compliance requirements.
Aside from development, procurement, IT governance, and quality assurance are additional processes that can be engineered to reduce technical debt and its lifespan.
Replacing aging, on-premise infrastructure with cloud-native solutions can help reduce long-term maintenance costs. With built-in security and a flexible pay-as-you-go model, the cloud provides agencies scalable, secure, and cost-effective software.
Cloud solutions eliminate the need for routine IT modernization tasks like hardware upgrades, software patches, and security updates. They also give IT teams the flexibility to develop and update complex applications without hardware constraints. By leveraging the cloud, agencies can innovate faster, stay ahead of technological advancements, and minimize technical debt.
In some cases technical debt is not just about archaic technology but also outdated skills. Government systems can become so complex over time that the average staff member struggles to use them effectively. To prevent this, agencies must invest in IT coaching and mentoring programs in key areas like modern development frameworks, cybersecurity best practices, and cloud management.
Successfully addressing technical debt also requires having a leader who can wear several hats. This person must not only have deep technical expertise but also understand the public sector. However, finding and retaining such a talent can be costly. An outsourced CIO can fill this gap, providing essential expertise without straining government budgets.
R, relying solely on manual testing can slow down deployments and increase the risk of software defects going undetected. Automated testing and continuous integration (CI/CD) pipelines ensure that updates are error-free and pushed live as soon as possible.
This approach reduces technical debt by catching issues early, preventing costly rewrites, and accelerating the rollout of secure and reliable software. Governments can leverage open-source or cloud-based CI/CD tools to streamline their development and maintenance processes.
Many governments remain attached to proprietary software that is costly to maintain and update. Open-source solutions offer a more flexible, cost-effective alternative, with continuous improvements driven by global developer communities. They also help reduce technical debt by enabling modernization without major infrastructure changes.
A key advantage of open-source software is that governments can build on existing, proven models rather than start from scratch. An international example of this is when Cambodia adapted Estonia’s X-Road framework to create CamDX, its own government data-sharing platform. 2
However, open-source also has its risks, so a thorough software evaluation and selection process is necessary.
A long-term technical debt reduction strategy requires governance structures that ensure continuous oversight and improvement.
Governments must establish policies that prevent technical debt from accumulating in the first place. This includes setting clear guidelines for software development, procurement, system updates, and IT investments.
Several states have already implemented legislation to help manage technical debt.
| State | Bill | Key Actions |
|---|---|---|
| New Jersey | NJ S2723 (2R) |
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| Texas | HB 4018 |
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Policies like these provide state and local government agencies with a clear roadmap for managing technical debt.
Routine audits of the technical debt reduction plan help keep modernization efforts on track and aligned with agency goals. Tracking and reporting progress also helps build stakeholder confidence, potentially increasing support and funding for further modernization.
At Hartman Executive Advisors, we understand that modernization can be an overwhelming task for local governments already focused on delivering essential public services. That’s why we provide you with a team of strategic IT experts who bring deep experience in the public sector to guide you through every step of technical debt remediation; from cybersecurity to organizational development.
Let us help you navigate your municipality’s unique modernization needs. Schedule a free consultation today.
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