Unified Network - One TIme vs Recurring Costs


TO:

 

HONORABLE CHAIRMAN ELI BEBOUT
HONORABLE CHAIRMAN STEVE HARSHMAN

 

FROM:

Flint Waters, State Chief Information Officer

 

SUBJECT:

 

Unified Network - One Time vs Recurring Costs

 

DATE:

 

January 20, 2014

 

CC:

 

Governor Matt Mead


EXECUTIVE SUMMARY:

The Department of Enterprise Technology Services (ETS) received a request to provide details of one time versus recurring costs related to the Unified Network initiative.


In circuit costs, the recurring cost breakdown is:

School foundation (SF): $3.4 million per biennium

  • This amount is offset by $2 million in reduced costs by renegotiating the circuits

  • This approach would result in a realized increase of $1.4 million for the biennium as compared to the current Wyoming Equality Network (WEN) Infrastructure budget


General fund (GF): $3.4 million per biennium

  • We anticipate considerable cost savings on the GF side as well, as we have not yet modernized the State circuits as we have for the schools. These savings will be better calculated prior to the FY 2017-18 budget request, but will quite likely be similar to those listed above.


That said, we anticipate approximately $1.4 million per biennium for each funding source in increase over existing costs. Please keep in mind the $1.4 million on the SF side is before considering the Federal E-Rate reimbursements, if that program continues.


In terms of hardware replacement, replacement costs will vary slightly based on the likely reduced prices for this technology 30 months from now, but current rates would be:

School foundation (SF): approximately $200,000 annually

General fund (GF): approximately $360,000 annually


The GF amount will vary depending on future decisions regarding the Emerson Data Center, movement elsewhere in the State etc., but those variation would be presented in any discussions prior to the decision to decentralize services outside of Cheyenne.