The most shocking story was about their system for tracking Medicaid patients. Their system had a fixed-width field for the patient's ID, and they ran out of identifiers - so they just started to recycle them again from the beginning. This problem was multiplied by the fact that, to say money, they didn't have backups of the original, clean data before the recycling. Thus it became pretty much impossible to understand what benefits had been afforded (or not) to whom.
Governmental budgeting seems biased strongly in favor of labor expenses, especially those with seniority, to the detriment of the maintenance of capital assets. This is pretty much a recipe for technological debt.