Last modified on:03.06.2009

Rate Setting Process

The Office of the CIO depends on revenues from services to pay more than 99% of its total budget. Only the cost of staff and expenses to support the Nebraska Information Technology Commission and its councils are covered by direct funding from the Legislature.

It is essential to set rates that recover all costs and are fair and equitable to the customer. The Office of the CIO must comply with federal accounting and audit standards governing cost recovery (OMB Circular A-87). Basically, this means that cost recovery plans (and rates) must not discriminate against federal programs. The rate structure cannot allow one service to subsidize another service, and any excess revenue must be returned to the rate payers through a reduction of rates in the future. There is also a restriction on fund balances, which should not exceed 60 days' operating capital.

The Office of the CIO conducts a thorough review of cost recovery methods (budgets and rates) prior to the start of each fiscal year. Most rate changes are done in conjunction with the state’s biennial budget process, but the Office of the CIO carefully monitors expenses and revenues throughout the year.

Date of last revision: April 9, 2007