Final Y2K Readiness Report Shows Most Areas Prepared
November 10, 1999
Today, President Clinton will announce a report from the President's
Council on Year 2000 Conversion, which says that major breakdowns in
key economic and infrastructure sectors now appear unlikely. Key
sectors of our economy, including electric utilities, transportation,
telecommunications and finance, have undertaken satisfactory conversion,
testing, and contingency planning to make a smooth transition into the
Year 2000. President Clinton also will announce that 99 percent of the
federal government's mission critical systems are compliant, and last
month made a smooth transition to Fiscal Year 2000. Finally, the
report highlights remaining areas of concern and federal efforts to
help address them.
Federal Agencies and Major Economic Sectors Ready For Y2K: Thanks to
America's hard work on the Y2K problem, serious disruptions in key
domestic sectors and the federal government are unlikely. These
Federal Services: 99 percent of the federal government's
mission-critical systems are Y2K compliant. The remaining 94 systems
are expected to be compliant well before December 31. As a result,
everything from air-traffic control to Social Security payments will
work just as they should. The federal government made a smooth
transition to Fiscal Year 2000 last month with the help of preparation
and contingency planning.
Financial Services: Virtually all federally insured financial
institutions and all eight securities exchanges have successfully
completed Y2K planning and testing.
Electric Power: Distribution entities handling 96 percent of
America's electricity needs are Y2K-ready.
Telecommunications: The largest local and long-distance carriers,
accounting for 92% of access lines, have completed 100 percent of their
Y2K remediation plans. Over 90 percent of smaller telephone companies
have also completed their Y2K efforts.
Air and Rail Travel: Major U.S. airlines have completed 99 percent
of their remediation and testing and 85% of their contingency planning.
An independent review has confirmed that the four major freight
railroads are ready for Year 2000. All FAA systems were fully compliant
in July 1999.
Oil and Gas: 90 percent of oil and gas companies are ready for Y2K.
Remaining Y2K Concerns: The report expressed concern over organizations
that are lagging behind in their completion dates or are hoping to make
repairs once problems arise. These concerns include:
Local Governments: Only 50 percent of local "911" call centers are
Health Care: Problems could arise with billing and medical records
systems at smaller health care providers.
Education: One-third of elementary and secondary school districts
and post-secondary institutions are not Y2K ready. Problems could
arise with student records, payroll and computer instruction.
Small Businesses: An April 1999 National Federation of Independent
Business (NFIB) study said that 28 percent of businesses with potential
Y2K problems planned to do nothing to prepare for the date change.
International Concerns: Most of the United States' developed trading
partners are in good shape. Canada and Mexico both reported high
degrees of readiness for cross-border trade. Meanwhile, the State
Department has assembled information on Y2K readiness and risks to be
included on the Department's Consular Information Sheets
[www.state.gov]. The Department will update the information and issue
travel advisories where necessary.
Administration Actions To Prepare For Year 2000: The President's
Council has been a proactive force to ease the transition into the Year
2000. However, much work remains. Over the next two months the
Council will do the following:
Y2K readiness planning: The Council's website [www.y2k.gov] and
toll-free phone number (1-888-USA-4-Y2K) offer help to small businesses,
individuals and organizations to plan for the transition.
Contingency planning: The Council will emphasize the importance of
back-up plans for organizations at all levels -- as well as individuals
and families. Its recently released booklet: Y2K and You includes a
checklist for individual planning.
Monitoring and Response: The Council will also begin monitoring
critical government and private sector activities to make
recommendations for federal responses to Y2K-related difficulties.
Continuing Role: Not every Y2K problem will be evident on January 1,
2000. Many problems may surface days or even weeks later.