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Governors look to tap technology

02/28/00- Updated 01:41 PM ET

WASHINGTON (AP) - The nation's governors are investing billions of dollars in technology this year - from registering cars online to providing seed money for Internet startups - in a concerted and sometimes frantic effort to tap into the new economy.

What works and what doesn't remains a puzzle. Coming together for a weekend devoted to the challenges of the digital age, the governors rushed to follow the private sector.

''Government is always the last to catch up,'' said Illinois Gov. George Ryan, who wants to spend $1.9 billion on technology in his state over the next five years. ''If we don't invest now, we're going to be behind.''

Governors heard from a parade of software and corporate executives, professors and commentators at the winter meeting of the National Governors' Association. Some governors shared stories of their successes.

''Some get it, some don't,'' said Eric Schmidt, head of software manufacturer Novell Inc., who spoke to governors Sunday about technology's place in global competition. But in a world where ''the fastest learner wins,'' things can change fast.

In New Jersey Gov. Christie Whitman's state-of-the-state address this year, she proposed $165 million toward technological initiatives from new training for welfare recipients to Internet incubators that help launch new companies.

''You can't just let it happen,'' she said. ''You've got to be driving it.''

She is not alone. Almost all the governors have laid out spending initiatives emphasizing new technology. South Carolina Gov. Jim Hodges wants $500,000 to add a chief technology officer to his cabinet; California Gov. Gray Davis proposed $75 million for research at public universities to focus on the next generation of technologies; Ryan's hoped-for $1.9 billion would go to education programs, government services and venture capital investments.

In part, the spending proposals result from the booming economy itself and the record revenues flowing into the states. They also are the governmental version of Wall Street's fascination with the e-world.

The governors' gathering mixed policy and how-to lessons: expanding broadband access, launching state World Wide Web sites, reinventing postsecondary education, managing the reams of government information.

One model is Washington state, home to giant Microsoft and for two years ranked the top ''Digital State'' by the Progress and Freedom Foundation and No. 4 in the Progressive Policy Institute's ''New Economy Index.''

Businesses in Washington can calculate and pay taxes online through a program provided free by the state. Similar ideas - ranging from taxes to car registration to social services benefits - are being considered or put in place nationwide.

''How long will people wait in line at your driver's license bureau if they can buy the whole bloody car online?'' New York Times columnist Thomas Friedman asked the governors. ''If the United States of America doesn't become as efficient as America Online, government will become irrelevant.''

Obstacles do remain, particularly the same questions of privacy and security that recently plagued the nation's biggest e-businesses. For government agencies that maintain sensitive personal information, the question is crucial.

''Some hacker who had a lot of fun hacking into an e-commerce site (will say) it'll be even more fun hacking into the police department and posting the names of all the johns arrested for soliciting a prostitute,'' said Jeff Eisenach, president of the Progress and Freedom Foundation, a group that once helped fund Newt Gingrich's college classes.

Privacy problems weren't ignored, but economic issues dominated for the governors. Economic development is a top priority. The issue of taxes on Internet sales remains unresolved.

The four-day meeting began with a stern warning: The NGA's report on the new economy concluded that states must aggressively refashion their governments if they want to continue to compete.

The NGA chairman, Utah Gov. Michael Leavitt, laid it out starkly: ''States can fight the changes and die, accept them and survive, or lead and prosper.''

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