Hello! Joe Morris, back with your monthly Market Insights Newsletter. As we near the end of 2022, I thought I would share the topics that we have locked in as key priorities for state and local government in 2023.

These priorities are based on real survey data from state and local government leaders throughout the country, surveyed by the Center for Digital Government. We have aligned our 2023 initiatives with these key topics as they will be critical in the new year.

I want to share some insights (this is Market Insights after all) on a few of these priorities. You’ll want to have these topics on your radar going into 2023.

Are you ready? Let’s dive in!

1. Cybersecurity

Cybersecurity retains its top spot as the #1 priority for state CIOs.

Federal Funding

We highlighted the most important aspects of the State and Local Cybersecurity Grant Program (SLCGP) in last month’s newsletter, and we will continue to track that $1 billion getting distributed (80% of which will go to local government).

Cybersecurity was a big winner when it came to the Infrastructure Investment and Jobs Act (IIJA), and the largest chunk of funding from the IIJA will be handed out next year. Here’s the breakdown:

• $200 million for FY 2022
• $400 million for FY 2023
• $300 million for FY 2024
• $100 million for FY 2025

Above All Else
Cybersecurity continues to be the #1 priority for state and county CIOs, and will therefore be a major key topic for us heading into 2023.

2. Transportation

Speaking of the $1.2 trillion IIJA, $284 billion went to transportation.

The pie will be cut into nine slices:

• $110 billion for roads and bridges
• $66 billion for rail
• $39 billion for transit
• $25 billion for airports
• $17 billion for ports and waterways
• $11 billion for safety
• $7.5 billion for EV chargers
• $7.5 billion for EV buses
• $1 billion for reconnecting communities

In addition, $273.15 spread over five years will go to the Highway Trust Fund.

The IIJA can help usher in a new era of transit innovation and transform backend operations for many agencies, according to transportation officials and industry thought leaders interviewed by the Center for Digital Government.

Big Topic: EVs on the Rise
You may remember seeing a major theme in this year’s super bowl commercials: electric vehicles.

Transportation accounts for 27% of greenhouse gas emissions in the U.S., so making transportation more energy efficient — and putting mechanisms in place to accurately track emissions from these sources — is critical to creating safer, healthier communities.

Leading the Charge:

California will phase out the sale of new fossil fuel-burning cars by 2035, establishing the state as the most consequential leader in the nation for the advancement of electric vehicles, and firmly position the car industry toward an electric future.

Transportation is a high priority for our team next year and has been a hot topic in the gov tech space. Look out for more news and further advancements around transportation in 2023.

3. Workforce

In a recent Market Update, I stated that workforce may be creeping into the #1 spot on state and local CIOs’ priority list (but not quite yet, cybersecurity still holds the trophy).

The conversations we are having with CIOs make it clear: workforce-related issues, such as economic development, public- and private-sector wage gaps and workforce retainment, have been a top budget priority this year and will continue to be as we look ahead to 2023.

✋ The Top Workforce Challenge?
Insufficient staffing. Capacity concerns are rising as government agencies struggle to move quickly to modernize systems and utilize federal funds.

♟ Your Next Move:
Look for opportunities where you can augment government’s workforce. For example, new technologies (like low-code/no-code development) are in high demand because it helps short-staffed jurisdictions move quickly on modernization efforts.

We have two strategic programs next year that align with workforce. “Work Reimagined: The Next CIO” and “Work Reimagined: Pursuit of Happiness.”

Let’s Talk

We are passionate about responding to government’s priorities through our programs, and we are looking for industry partners who are equally as passionate.

Drop me a line if you are interested in aligning your products and services around these key initiatives. If you want to find out the other topics we are focusing on this year, I’m happy to send a follow-up with the rest of our key topics for 2023.

Let us know if you are interested in partnering on any of our strategic initiatives.

Have a specific question about the market? Feel free to submit your questions to joeknowsgov@erepublic.com and we will get back to you, or answer your question in the next edition of the newsletter.

Until next month,
Joe Morris
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