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Self-Funded Online Government Services

NIC designed the transaction-based self-funded eGovernment approach to help states build solutions without requiring tax appropriations. Under a transaction-based self-funded approach, governments charge a modest transaction fee (in addition to any existing statutory fees) to provide value-added online services that are primarily targeted at high-volume business users. NIC currently helps 27 states deliver eGovernment solutions with the transaction-based self-funded model.

These transaction fees provide the basis for funding a state’s electronic government program. The statutory fees for online services continue to be deposited into state accounts on an agreed-upon frequency. A high percentage of all transaction fees collected are reinvested in the infrastructure and local NIC personnel required to build, manage, and enhance the state’s eGovernment initiatives – including the rapid introduction of information and services available at no cost to citizens.

Customized Delivery

The transaction-based self-funded model can be adapted to deliver tangible benefits in a variety of circumstances, including:

  • For states of any size
  • To meet the unique business requirements of any agency
  • In any economic climate
  • To integrate with any legacy IT system

Why Self-Funded eGovernment Succeeds

No tax dollars required: NIC’s eGovernment solution requires no tax or appropriated dollars. Under a self-funded model, business users pay a modest transaction fee for select value-added online services. The majority of eGovernment services for both businesses and citizens are provided at no charge to end users.

Good governance: Our government partners provide oversight for the portal, make decisions on prioritization of services, and approve transaction fees for select services. Government maintains ownership of all state data, while NIC oversees the electronic delivery of services and information.

A few fee-based services support comprehensive free solutions: NIC offers fee-based enhanced access and delivery methods to commercially-viable government information desired by the business community. This funding source is leveraged to build a comprehensive suite of free services for citizens.

Delivering Results With Self-Funded eGovernment

  1. Enhancing Customer Service for Citizens and Businesses: NIC partners with government to improve service delivery for citizens and businesses by bringing services online. We launch several hundred new services per year that streamline and simplify interaction between constituents and government agencies.
  2. Focusing Locally: We contribute to the local economy by hiring locally. Each of our partners benefits by having individuals who are dedicated and on-site, including management, technical development, and marketing resources that drive increased citizen awareness and use eGovernment services.
  3. Supporting State Economic Development: NIC creates high-quality jobs by hiring local technology, marketing, and customer service talent to augment our experienced portal management resources.
  4. Rapidly Deploying World-Class Online Services: We have built thousands of applications for state government during our 20-year history, many of which can be customized and deployed in a matter of weeks. This dramatically reduces the typical cost and cycle times of bringing services online. NIC’s technology-neutral approach allows us to improve existing state services and integrate with any legacy system.
  5. Driving Usage: NIC creates custom marketing plans to make businesses and citizens aware of the government services that are available online. Our partner states experience some of the highest adoption rates in the industry and often see double-digit adoption rates within the first few months after launch.
  6. Introducing New Online Services: We constantly deploy new solutions that bring users back to a state portal. For the business community, as an example, we regularly add new business tax filing services so that constituents continually see new opportunities to increase efficiencies by using eGovernment services.

For More Information

photo of Robert Chandler Robert Chandler
Vice President of Sales

NIC Inc. is the nation's leading provider of official government portals, online services, and secure payment processing solutions. The NIC family of companies provides eGovernment solutions for more than 3,500 federal, state, and local agencies in the United States.