In preparation for answering the questions, search for "Oregon Geographic Information System" using Google. You'll see many references to state government departments and their use of GIS.
The planning effort covered: 1- strategic IT planning, 2 – Information Requirements and 4 - Project planning. 3 - Resource Allocation was not performed, but the need for it was stated.
Well done are the benchmarks for success, the specific goals, the technology goals and the people goals. The follow-up on the plan is also relevant.
The problems are to include future developments as essential for success that ultimately may not pass.
The resource allocation in agencies is a political process, and different decision-makers may or may not know the value of the projects. In business, the resources are set at the start and will most likely stay in place, even if the people change.
GIS has many applications. Viewing the data at the agency may be free. Downloading it for for-profit usage should be fee based.
For example, land developers are among those who can profitably use the GIS data and should pay for it when they download the data to their computers.
Also transportation companies, and logistics providers can be beneficiaries and thus should pay for the data.
Marketing plans can make good use of GIS.