We've written on numerous occasions about open source adoption in government and education. The ways that open source solutions make sense in (and even philosophically complement) these areas are many, and often make any obstacles involved seem less critical. But for reasons that are frequently unrelated to the utility or appropriateness of open source software, adoption in the public sector has been slow.
It is on the increase, however. The Daily Gazette in Schenectady, New York, recently ran a piece detailing the reasons why the public sector has been hesitant about -- but not entirely resistant to -- adopting open source software.