State’s Progress on Y2K Bug a Puzzle

SACRAMENTO —  Even as an upbeat and reassuring Gov. Gray Davis reported last month that the state was 75% along in fixing its Y2K computer problems, technology experts throughout California’s government were dubious.

The very next day a report from the state auditor suggested an almost opposite conclusion. And a week later, puzzled lawmakers were told at a legislative hearing that the two assessments were “apples and oranges.”

Frankly, the governor’s newly hired computer consultant testified, “we cannot tell you exactly where the shortcomings are or where we stand.

“We have launched a detailed reassessment of where we are today and from that we will be better able to inform the public,” he said.

As for Davis’ 75% estimate, Davis aides later acknowledged that that was based on old data they already considered faulty.

They still contend that that assessment could turn out to be correct after the current review of state computer systems is complete. But such a statistic can also be misleading, suggesting that the work is almost complete when experts say there is risk if even a quarter of the state’s repair job is incomplete.

“I’m concerned that the job . . . is ‘mission impossible’ if we are very far behind, and my sense is that we could be very far behind,” said state Sen. Debra Bowen (D-Marina del Rey), who attended the special legislative hearing.

The upshot, officials acknowledge, is that California government is scrambling to get a grip on its Y2K problem before the notorious Year 2000 software glitch threatens to disrupt computer systems on New Year’s Eve.

Most state officials are optimistic--if not confident--that they will at least repair the critical state systems responsible for public health and safety before a self-imposed deadline of Sept. 1.

But by all accounts, California’s repair work is behind schedule. How far behind is uncertain.

The auditor found that some of the tests conducted were not adequately documented. Other systems had problems even though they were certified as fixed. And almost all state agencies still had plenty of work to do.

Davis responded to the backlog last month by creating three panels to rapidly assess and repair the problems. And last Wednesday, he met with experts from about a dozen high-tech companies that have agreed to participate in the effort.

“We would prefer to be a little farther down the road than we are,” Davis told the group. “But I think with 296 days to go, we still have time to get this job done.”

The first task of the new team is to re-inventory all of the state’s computer systems. They still do not have a reliable working list of which computers need work and which are done.

All of the repairs in the state’s most critical departments were to have been completed last December under an executive order that Gov. Pete Wilson signed in October 1997.

But the state auditor’s report last month said at least 11 of those 14 departments are unprepared--in violation of Wilson’s order.

Manual Overrides on Many Systems

The auditor warned about computers that direct about two-thirds of California’s water supply; others that control electrified security fences at 23 state prisons; others that run the state’s emergency communications system; and still others that calculate more than $7 billion annually in benefits for the unemployed, the retired and Medi-Cal recipients.

Many of the critical computer systems have manual overrides or alternatives that can perform critical functions if the computers fail, officials said. But many departments also have not prepared a contingency plan they can follow in case of a computer failure.

“With time running out and no potential for an extension, it is troubling to find so many computer systems that support such a large number of state programs--many delivering vital services to Californians--are still in need of some remediation before state agencies can ensure the risk of failure is minimal,” the auditor’s report said.

The 14 critical departments represent a small fraction of the programs in state government, officials said. At least some--if not many--of the noncritical computer systems throughout state government may not be repaired before the new year, officials acknowledge.

Kurt R. Sjoberg, the state auditor, said an example of a noncritical computer might be a billing system that collects fees for special purposes like boating. In such cases, he said, there could be minor delays caused by computer failures.

“If we had a few of those . . . it might mean you don’t get a little sticker for your boat [on time],” he said. “Their impact on us . . . will be less onerous” than a failure of the critical systems.

Officials are debating whether the Department of Motor Vehicles should be considered critical or noncritical. The auditor left the department off its critical list. But aides to the governor say they might include it on theirs because of its use as a database for law enforcement.

The designation is significant because it will help determine how the state deploys its teams of computer repair technicians.

Officials also have not determined how much the repairs will cost this year. So far, they have reported spending $342 million on the problem since 1996.

And there were several other unanswered questions when the Legislature convened a special hearing on the matter Feb. 24.

Lawmakers complained that they hired a consultant last year to inventory the state’s computer readiness. But Davis aides were unable to explain the results of any previous work.

State officials also could not answer a question from Sen. John Vasconcellos (D-Santa Clara) about how many state technicians were working on the Y2K problem.

And emergency preparedness officials could not answer a question from Assemblywoman Elaine Alquist (D-Santa Clara) about whether all of the state’s police and fire departments have backup power generators.

“Are you saying we don’t know?” she asked.

Alquist was told a survey of local police and fire departments is underway.

Concerns Over Asia’s Economy, Public Panic

Even if the state corrects all of the problems with its computers, lawmakers were also told that some of the most significant problems could come from outside government.

Richard Hall, a government affairs representative from computer chip maker Intel, told legislators that their three chief Y2K concerns should be Asia’s economy, electric power and public panic.

Hall said an international study of Y2K readiness identified many Asian countries as almost certain to suffer failures of critical computer systems.

Since California’s economy was softened last year by economic problems in Asia, Hall suggested that the state budget should anticipate another impact next year due to financial losses in Asia because of Y2K.

Regarding electric power, concerns were raised about the myriad state, local and other jurisdictions responsible for the western power grid that supplies California. The state’s utilities have reported that their systems will be ready. But the lawmakers were told that much of the utility testing has been done in private and has not yet been available to government inspectors.

The Legislature has scheduled a hearing on utility readiness later this month.

Finally, Hall warned that the state could suffer significant disruptions from a frightened public that withdraws extra money from banks and stocks up on food.

State authorities acknowledge that they are walking a careful line in trying to provide the public with an accurate and complete status of Y2K repairs while not causing unnecessary alarm.

Vasconcellos recently wrote a letter to Davis suggesting that the governor try to maintain calm by conducting a regular series of “fireside chats.”

“Gov. Davis is the one official in our state who can ease the anxiety [and] prevent panic from becoming a self-fulfilling prophecy,” he said.