Year 2000 Computing Challenge

Programs run by the states provide a host of critical social services, from Food Stamps to Medicaid. GAO reported last year that many state systems that support federal human services programs were threatened by the Year 2000 computer problem. (See GAO/AIMD-99-28, Nov. 1998.) More recently, GAO testified before Congress that although federal agencies were working with their state partners to obtain readiness information and provide assistance, much work remained at the state level to help ensure that major services were not disrupted. (See GAO/T-AIMD-99-241, July 1999.) This testimony (1) highlights the reported Year 2000 readiness of 10 key state-run federal human services programs and (2) discusses federal efforts to assess states' readiness for these 10 programs.

GAO noted that: (1) much work remains at the state level to ensure that major services are not disrupted; (2) at particular risk are several states with systems that are not yet year 2000 compliant; (3) in addition, federal agency reviews of business continuity and contingency plans for state-administered federal programs indicate that many are inadequate; (4) federal agencies are working with their state partners to obtain readiness information and evaluate and provide assistance in key activities such as business continuity and contingency planning; (5) nevertheless, some state completion dates are so close to the turn of the century that the risk of disruption to their programs is substantially increased, especially if schedule delays or unexpected problems arise; and (6) this is especially troublesome considering the amount of work remaining in developing effective business continuity and contingency plans.