National Association of Counties * Washington, DC / Vol. 30, No. 8 * April 27, 1998

---

The spectacular entrepreneurial success of the information technology industry has led the American economy to its greatest boom period in history - and that is the main reason the federal budget can be balanced today.

U.S. Secretary of Commerce William Daley pointed this out when he symbolically selected April 15 - Tax Day 1998 - to release the long awaited report, "The Emerging Digital Economy."

The report explains that the information technology industry now contributes more than 25 percent of the nation's real economic growth and comprises more than 8 percent of the total U.S. economy. This industry is growing at twice the rate of the rest of the U.S. economy and it reduced total U.S. inflation by 1 percent last year. The new economy - a digital economy - has indeed emerged.

Commerce's report discusses how the manufacturing industry uses electronic communication to reduce the cost of production materials and supplies. The retail industry uses the Internet and intranets (private communication networks) to hold down inventory costs, reduce sales and marketing expenses, expand sales and provide better customer service.

While numerous private sector industries were highlighted in Commerce's report for their innovative use of the new technology, it is also important to point out that counties are using much of the same digital and electronic communication technology to improve service, reduce costs - and encourage this booming economy.

For example, a real estate developer in Wake County, N.C. can obtain a building permit application from the convenience of his or her office by going to the county's Web site. A resident of Montgomery County, Md., can go online to view current photographs of major intersections before backing out of the driveway.

A citizen of Arapahoe County, Colo. can conduct an online residential parcel search from the county's database to determine the owner, legal description and tax levy of a particular parcel of property.

Other examples of innovative use of digital communication by county governments abound.

The "24-Hour Road Shop" hosted on the home page of Clark County, Nev. allows its citizens to report roadway hazards to the county or to request road signs or traffic signals.

San Diego County, Calif., allows residents to submit electronic applications for Section 8 rental assistance certificates. This jurisdiction also allows its citizens to conduct online searches of recently sold residential properties for the purpose of supporting appeals of property value appraisals.

Clackamas County, Ore. has an intranet site for the exclusive use of its employees. Employees can ask and respond to questions on an electronic bulletin board, learn about commuting options, and access class schedules and syllabuses for the county's Technical Learning Center.

Citizens and businesses greatly benefit from such new and creative applications of the Internet that county governments have developed to enable the rapid exchange of information electronically.

Just as the private sector has been developing new applications for information technology to benefit its customers, so have county governments.

New types of information technologies are emerging - digital imaging and digital signatures are two examples that are being implemented throughout the country (to read more about digital signature technology, see Technology News in this issue of County News) - and counties will continue to find innovative ways to utilize them.

The digital economy is here and counties are an important part of it.