The Self-Funded Model is a self-funded enterprise approach, originated by NIC and unique to our various subsidiaries across the nation. As the only providers of this model, we are able to deliver and provide ongoing support for eGovernment services and other related activities at no cost to government.
A modest transaction fee ranging from $1 – 3 is applied to a limited number of eGovernment services already collecting payment. Over time, these pooled transaction fees cover the cost of developing, maintaining and expanding the state’s eGovernment enterprise at no cost to government.
The transaction fees allows for the support and delivery of eGovernment solutions to all agencies with digital needs, not just larger agencies with resources. These fees are collected on approximately 40% of the services offered, and the pooled approach creates the sustainable funding stream necessary to support long-term eGovernment growth. Over a dozen NIC states, including Montana, have been using the Self-Funded Model to deliver services for more than a decade.
The transaction fee is primarily applied to business-facing services that serve business groups who frequently interact with government such as banking, legal, transportation, insurance and licensed professionals just to name a few. The result is that those utilizing these services pay the modest fee, whereas government pays nothing. These pooled fees cover all costs for digital government buildout and ongoing operations.
The key to success is a sustainable, long-term funding source which allows for reinvestment to build new services. The Self-Funded Model also allows our partners to avoid the reoccurring government funding challenges since no appropriations, tax hikes or agency allocations are needed. The ongoing revenue brought in through the transaction fee funds the enterprise.
Reinvesting is critical to the success of the state’s eGovernment enterprise as it allows for the expansion and development of new eGovernment services and mobile solutions. It also allows for the continued focus of our security posture and overall infrastructure while also allowing us to add staff to our Helena-based team to support the evolving eGovernment needs of Montana.
The funding received through the transaction fee collected supports the entire enterprise; from both a maintenance and expansion standpoint. With the Self-Funded Model in place, approximately 60% of eGovernment services and other eGovernment related activities are able to be offered at no cost to government and to the end user.