Federal Y2K Budget Rises to $8.06 Billion

The federal government Tuesday raised its estimate of how much it expects to spend fixing the year 2000 computer problem to at least $8.06 billion, $1.3 billion more than it predicted just three months ago.

The White House Office of Management Budget report said the increase was due mostly to the Defense Department’s use of $1.05 billion in emergency funds set aside by Congress to fix the most important computers.

The cost estimate includes money spent on the problem by federal agencies since fiscal 1996.

The OMB’s latest quarterly report on the Y2K problem said 93% of the government’s 6,190 most important computers have been repaired, replaced or never were vulnerable, up from 79% in February.

Of the 410 computer systems government-wide that aren’t ready, most are being repaired, it said. Thirty-five computer systems are being replaced and 24 are being scrapped, it added.

Fourteen federal agencies said all of their most important computers were prepared. Ten other agencies--including the departments of Agriculture, Commerce, Energy and Justice--still have unfinished work. Among the systems still not ready is part of the FBI’s automated fingerprint system, the report said, but the Justice Department said it should be fixed by next month.