For the most part, government hasn't been as swift to use the power of the Internet as has business. That's not surprising. Businesses court customers. Without them, they die.
Government serves citizens.
Regardless of service levels, taxes are collected. Then there are local governmental services called enterprise funds. They don't get local tax money but instead must rely on payments for the services they provide. But even with that breed of governmental cat, the Internet sometimes can be a strange creature. Take a look at the Web site for Houston's Bush Intercontinental Airport.