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National Association of Counties * Washington, D.C.      Vol. 32, No. 23 * December 18, 2000

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Research News

Y2K One Year Later

Last year at this time, everyone was worried about the Y2K bug. NACo had worked for more than two years to assist counties with preparations for Dec. 31, 1999 when the clocks would turn over. Not only was it New Year’s, it was the beginning of a new century. Many organizations had developed new software programs, consultants were marketing their wares and services and folks were floating horror stories about malfunctioning imbedded chips.

NACo conducted two surveys on Y2K activities of counties. NACo staff participated in a PBS-sponsored television show in Daytona Beach where representatives from the food industry, banking, utilities and psychological communities all discussed the impact of Y2K. Each of the members of the panel emphasized that, with due diligence, any negative effects could be minimized. In spite of this effort and similar ones across the nation, people still purchased huge generators that they will never use; stockpiled water and foodstuffs they will never need; and purchased firearms that they now need to store.

What the Y2K issue did to us as a nation was to make us realize how dependent we are on technology. We feared a duplication of charges on our credit cards by smaller businesses that were not compliant. We feared that traffic and gasoline availability would come to a halt if the systems that run them failed. We worried that the ATMs would not give us money so we stockpiled it.

We worried that our microwaves, alarm clocks, coffeemakers and PCs would not work. In short, we discovered how vulnerable we are.

Well, Y2K arrived and passed, not with a bang, but with a whimper. More than 99.9 percent of all systems worked without a hitch. Was it a hoax? Some say it was merely a story created to give technology consultants more money.

Nonetheless, Y2K prompted counties across the nation, large and small, to evaluate their computer systems, repair them and update them where necessary. In a recent survey of targeted rural counties, NACo found that most smaller rural counties now have up-to-date information technology systems. Much of this updating of computer systems was a direct result of the work to achieve Y2K compliance. What the Y2K action plans also did was prepare counties for any kind of crisis. Their preparations were tested and retested in a method that can be used for just about any kind of emergency. The contingency plans that were developed especially for Y2K could also apply to blackouts, floods, hurricanes and other major disasters.

Americans across the nation withdrew large amounts of cash because of Y2K fears. To meet customer demand, more than $80 billion in cash was distributed to banks, thrifts and credit unions in the last three months of the year, compared with $23 million in 1998. Huge inflows of cash started to appear at these institutions starting on Jan. 3, 2000. The return of currency after Y2K was so large that for several weeks the Federal Reserve had to extend the hours on its loading docks just for various institutions to return currency.

Some ideas included donating the generators, bleach (for purifying water), batteries, flashlights and tools to a disaster relief group or to the Red Cross. Canned and boxed foodstuffs could be donated to a local food pantry and clothing, and blankets could be donated to local homeless shelters.

We should all keep in mind the example of Gonzales County, Texas. A citizen sent a thank you to all of the people in the county in response to some folks who said that the Y2K bug was a big hype. His thank you was, “Thank God, the problem was solved in time.” His first thank you went to the county emergency management coordinator for work no one would ever see because “nothing happened.” He thanked the banks, the healthcare providers, the food supply chains and grocery stores and all of the systems that worked. Y2K was a non-event because counties cared enough to come into compliance.

Happy New Year!

(Research News was written by Jacqueline Byers, NACo Director of Research.)

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