The State of California has finally said that it's OK to use Open Source Software on goverment systems. Really, how is it that the home of Silicon Valley just now figured out that Open Source is OK? You really would have thought that they would have been first right? The author in the linked to article does a great job of explaining what you should think about when making an Open Source Policy. He has some great suggestions.
So do you want your state and local government using Open Source Software?