Governor McDonnell Announces Plan to Save $1.4 Million in Department of Taxation

Orders Elimination of Certain Contracts for Information Technology Consultants RICHMOND- Governor Bob McDonnell announced today that he will call for the elimination of certain contracts for information technology consultants in the Department of Taxation, saving the Commonwealth $1.4 million. The elimination of the contracts will save taxpayers $328,000 in FY 2011 and slightly over $1.0 million in FY 2012. The functions performed by the consultants will be moved in-house.

Speaking about the proposal, which will be part of his amendments to the current biennial budget, the Governor noted, “In a tight budget and tough economy every single dollar counts. We must identify every opportunity by which state government functions can be performed with the same level of professionalism and expertise, but at less cost to Virginia taxpayers. By eliminating these contracts we will save $1.4 million in two years. It all adds up. We are committed to making state government smaller, more efficient and more effective, in ways both big and small, throughout the course of this Administration.”

The functions that will now be performed in-house by the Department of Taxation include designing system changes and programming the Department’s core applications to implement legislative tax law changes.  This ensures that tax returns are processed correctly each year.  Department staff will also be responsible for maintaining the stability of the agency’s core applications and developing systems to improve the efficiency of agency operations and service to taxpayers.