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As the examples in this guide illustrate, the value of integrated data systems to drive better results in government programs is clear. And creative, sustained financing that draws funding from multiple sources is possible, but complicated. It shouldn’t be so hard. Cooperation across agencies and levels of government is key to making progress. This can happen on two parallel tracks, with cross-sector collaboration as a key ingredient for both.

Section 6.A. Track One: Navigating Existing Rules and Processes

Federal, state, local, tribal, and territorial governments should come together to better understand and help navigate existing rules and processes for financing integrated systems and associated evaluation capacity.

Federal agencies could generate momentum by synchronizing federal efforts that build upon OMB’s recent clarification that grant funds may be used for integrated data systems and evaluation. They can maximize their impact by working together to:

• Learn about the benefits of state and local government integrated data systems and cross-program analytics and evaluation to advance their program portfolios.
• Provide consistent, coordinated guidance and technical assistance and pro-actively disseminate best practices and real-world examples to grantees, helping to publicize permissible ways to finance shared infrastructure, analytics, and evaluation capacity.
• Incentivize grantees to develop, maintain, and continually enhance shared infrastructure, analytics, and evaluation services.
• Strengthen two-way communications between grantees and federal agencies to identify and devise practical solutions to bureaucratic barriers that impede better use of data.

At the state, local, tribal, and territorial levels, governments can make progress by:

• Forging partnerships across C-suite executives and program agencies to build a shared vision and data governance structure that guides financing, technology, and organizational decisions.
• Becoming active participants in communities of practice and other networks to gain knowledge of best practices and powerful use cases that can be replicated.
• Sharing constructive feedback and potential solutions to federal agencies that have limited understanding of the confusing federal financial guidance that stifles data modernization.

Section 6.B. Track Two: Simplifying Financing Mechanisms

The federal government should radically simplify the mechanisms it and its state, local, tribal, and territorial partners use to finance integrated data infrastructure and evaluation capacity in state, local, tribal, and territorial governments.

The path state and local budget and finance offices must travel to unlock funding for integrated data systems is byzantine and nonsensical. The maze of current rules and processes and the imperative to avoid audit findings are enormous deterrents for many jurisdictions. As a result, far too many of them continue to waste money on inefficient, siloed data and reporting processes and fail to gain critically important insights that are only possible when data is integrated.

• Many of the current rules and processes should be simplified or streamlined through federal administrative action, while maintaining responsible fiscal controls.
• Congress could also take action to reduce financing and accounting barriers.

Section 6.C. Cross-Sector Collaboration

For both of the above tracks, outside organizations should play an important role in contributing expertise, assistance, and safe forums for modernizing financing processes. It is unrealistic to expect federal agencies to devise solutions to complicated bureaucratic hurdles they don’t experience or understand. A more effective and efficient way to make progress is through problem-solving forums and working groups that bring together expert practitioners and government innovators with experience working at different levels of government.

State, local, tribal, and territorial government associations (especially those focused on budget, finance, and audits); universities and academic researchers; data- and evidence-focused non-profits; and philanthropies can provide expertise and resources for solutions-focused collaborations.

Conclusion: Transforming Public Sector Data Infrastructure

Despite the fact that integrated data systems are critical to support comprehensive performance and evaluation efforts, it is no one’s job at the federal level to understand the challenges state, local, tribal, and territorial governments must overcome to strengthen this capacity.

There is also no institutionalized process for crossagency, intergovernmental collaboration to help governments strengthen enterprise-wide capabilities to integrate and analyze data from many sources. Modernizing financing mechanisms is only one of the challenges requiring an intergovernmental approach. Other efforts to improve data quality, accessibility, and use by decision-makers are necessary and are prerequisites for government use of AI to improve efficiency and effectiveness.

Transforming public sector data infrastructure to address the nation’s complex challenges will require new ways of doing business, where multiple levels of government work as partners. With strong federal leadership and coordination, it can be done.

Resources

Financing an IDS is a key consideration – and it is deeply intertwined with other needs and considerations that support the system’s overall effectiveness. Below are a few resources that may help with building, operating, or enhancing an IDS.

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