This article presents a self-contained yet comprehensive discussion of the prospects of state and local electronic government (e-government), the status of its development across the states and local communities, and the difficult challenges faced in making it a reality. In taking a very broad approach to e-government, the hope is that the analysis helps to bring perspective to the issue and to synthesize a literature that is increasingly becoming a series of disconnected case studies. Although the prospects at all levels of government for improving public services, reducing costs, and enhancing the democratic process are high, e-government has been penetrating state government much more rapidly than local government. The most salient obstacles to full penetration of e-government seem to be proper marketing, privacy issues, equity, and financing.
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