The 2023-24 Spending budget

Introduction

This post gives an overview of the information and facts technologies (IT) projects in the Governor’s proposed 2023-24 spending budget. We initially deliver relevant background information and facts on the California Division of Technologies (CDT) and the phases of an IT project. We then recognize every of the spending budget proposals to strategy, create, and implement IT projects. We deliver our assessment of subjects prevalent to a number of IT project-connected proposals and supply alternatives for legislative consideration. (We do not deliver in-depth evaluation of any person spending budget request in the post, but hyperlink to other IT project-connected analyses in other publications organized by spending budget region.)

Background

Function of CDT. CDT is an entity inside the Government Operations Agency with broad authority more than all elements of technologies in state government. This post focuses on two of the department’s responsibilities: (1) to evaluation and approve IT projects proposed by state entities, and (two) to oversee improvement and implementation of authorized projects till completed.

Phases of an IT Project. A state IT project goes via 3 distinct phases: (1) planning, (two) development and implementation (D&ampI), and (three) maintenance and operations (M&ampO). Most state IT projects in the organizing phase (referred to as proposed projects) are essential to full CDT’s Project Approval Lifecycle (PAL)—the state’s IT project approval procedure. Some proposed projects, such as low expense and/or low danger projects, are delegated back to entities to strategy, create, and implement without the need of direct approval and oversight by CDT. Other proposed projects are determined to be exempt from PAL, for instance, minor upgrades to current IT systems. As soon as authorized via PAL (referred to as authorized projects), state IT projects commence D&ampI. As soon as D&ampI is completed, state entities commence M&ampO of the IT program. We describe every phase in far more detail beneath:

• Preparing (PAL). The PAL procedure divides state IT project approval into 4 stages: (1) business evaluation, (two) alternatives evaluation, (three) solution evaluation, and (four) project readiness and approval. Every single stage in the PAL procedure calls for entities to submit an related organizing document to CDT for its approval. Collectively, the organizing documents from the 4 stages deliver a full project strategy which includes the expense, schedule, and scope of the project. Figure 1 gives a graphical depiction of the PAL procedure.
• D&ampI. As soon as CDT approves a proposed IT project, state entities can start out project D&ampI. Projects can method D&ampI in a number of approaches: (1) the regular “waterfall” method, (two) the “agile method,” or (three) some mixture of regular and agile approaches. Employing the regular method, entities create the whole scope of the project ahead of it is implemented. Employing the agile method, by contrast, entities create some of the project scope (occasionally referred to as modules) and implement it although the rest of the scope is becoming created. A mixture of the regular and agile approaches could possibly create project scope as modules, but combine the modules into a handful of discrete releases for implementation to decrease the frequency of user testing and instruction.
• M&ampO. As soon as IT project D&ampI is completed, a project becomes an IT program and enters M&ampO. M&ampO consists of activities and expenses related with a state entity’s ongoing upkeep and continuing use of a program.

Relevant Modifications to IT Project Procurement and Oversight. Two current alterations to state IT project procurement and oversight are relevant to this post.

• Challenge-Primarily based Procurements. In January 2019, Governor Newsom signed an executive order (EO N-04-19) directing CDT and the Division of Common Solutions to create new procurement approaches that defined a trouble for bidders to resolve and asked them to demonstrate their capacity to resolve it via demonstrations, proofs of notion, and prototypes. We usually refer to these new approaches as challenge-primarily based procurements in the post. The purpose of challenge-primarily based procurements is to enable far more bidders to supply options to the state’s complicated issues, rather than requiring the state to pre-define options with detailed specifications-primarily based solicitations.
• Enterprise Modernization Efforts. Massive state entities such as the Division of Overall health Care Solutions (DHCS) and the Employment Improvement Division (EDD) are making use of an enterprise project management method (that is, managing a quantity of concurrent and frequently connected IT efforts and projects) to modernize their applications and/or solutions. As person IT projects progress via various phases, CDT tries to deliver oversight not only of the person IT project but also of the whole enterprise portfolio of IT efforts and projects. Essential examples of this method are DHCS’ Medi-Cal Enterprise Systems (MES) Modernization and EDD’s EDDNext modernization work.

Governor’s 2023-24 Spending budget

Governor’s IT Project Proposals Total $641 Million ($432 Million Common Fund) and 275.two Positions. According to CDT and the Division of Finance (DOF), 40 spending budget proposals in the Governor’s 2023-24 spending budget are connected to IT project proposals (Figure 2). These proposals request a total of $641 million ($432 million Common Fund) and 275.two positions. Some of these proposals include non-IT project-connected funding and/or positions, as we are unable to separate IT project-connected and non-IT project-connected expenses in every proposal.

Figure two

Governor’s 2023‑24 Spending budget IT Project Proposalsa

(In Millions)

Entity

Spending budget Transform Proposal Name

2023‑24b

TF

GF

OF

Positions

EDD

EDDNext Modernization

$198.

$99.

$99.

—

FTB

Enterprise Information to Income Project two

135.

135.

—

$72.

CDCR

Statewide Correctional Video Surveillance Continuation

87.7

87.7

—

19.

SWRCB

Water Rights Modernization Continuation

31.five

31.five

—

—

DSH

Electronic Overall health Records Preparing

21.five

21.five

—

40.two

DIR

Electronic Adjudication Management Technique Modernization

21.1

—

21.1

—

CARB

Heavy‑Duty Automobile Inspection and Upkeep Plan Per SB 210

14.1

—

14.1

19.

DDS

Uniform Fiscal Technique Modernization and the Customer Electronic Records Management Technique Project Preparing

12.7

12.7

—

—

DIR

Cal/OSHA Information Modernization Project

12.six

—

12.six

—

CDCR

eDiscovery Ongoing Requires

ten.

ten.

—

11.

CHP

Wireless Mobile Video/Audio Recording Technique and Body‑Worn Camera Statewide Implementation

9.eight

—

9.eight

11.

CDCR

BIS Migration to S/four HANA

eight.1

eight.1

—

—

DHCS

Medi‑Cal Enterprise Systems Modernization

7.eight

1.four

six.four

7.

CDFA

Emerging Threats Data Management Technique

six.7

four.two

two.five

three.

DCA

Enterprise Modernization Cohort 1 and two

six.

—

six.

—

Caltrans

Transportation Technique Network Replacement

five.eight

—

five.eight

11.

CARB

Embodied Carbon Emissions: Building Supplies (AB 2446)

five.7

—

five.7

15.

GovOps

Workplace of the Cradle‑to‑Career Information Technique Right‑Sizing

four.9

four.9

—

ten.

CalEPA

California Environmental Reporting Technique Project

four.three

—

four.three

—

SOS

Notary Automation Plan Replacement Project (NAP two.)

three.six

—

three.six

two.

CDPH

California Newborn Screening Plan Expansion

three.five

—

three.five

four.

DPR

California Pesticide Electronic Submission Tracking (CalPEST) Project

three.three

—

three.three

two.

SOS

Disqualification from Voting (AB 2841)

three.1

three.1

—

11.

CHHS

Electronic Go to Verification Phase II

two.9

.7

two.two

three.

CalVet

CalVet Electronic Overall health Record Project: Added Activities and Scope Improve

two.five

two.five

—

—

DGS

Procurement Division E‑Marketplace Implementation

two.four

—

two.four

two.

CalRecycle

CalRecycle Integrated Data Technique

two.three

—

two.three

four.

CARB

SB 1137 Implementation: Overall health Protection Zones

two.two

—

two.two

9.

OEHHA

Establishing a Statewide Intense Heat Ranking Technique (AB 2238)

two.two

two.two

—

four.

CDFA

Stage Gate two Planning—CDFA Licensing and Payment Portal

1.five

1.five

—

—

SOS

Public Entity Personnel and Contractors Access to Secure at Household (SB 1131)

1.five

1.five

—

six.

CalHR

Communications Workplace and Content material Management Technique Replacement

1.four

1.

.four

two.

CHHS

California Emergency Health-related Solutions Information Resource Technique

1.1

—

1.1

six.

CalVet

Internet site Improvement to Boost Digital Communications

1.

1.

—

—

DSS

Reinforce the Caregiver Background Verify Technique and the Background Verify Sources

.9

.9

—

—

DIR

Workers’ Compensation Data Technique Upgrade

.eight

.eight

—

—

CDFA

IT Enterprise Transition Help

.five

.five

—

—

Caltrans

Enterprise Information Governance Technologies Resolution Stage four

.four

—

.four

—

OPR

Programmer Position to Preserve and Redesign the CEQA Technique

.three

.three

—

1.

CalEPA

CalEPA Geographic Data Officer

.three

—

.three

1.

Totals

$641.

$432.

$208.9

$275.two

IT Project-Particular Function Solutions

We do not deliver in-depth evaluation of any person spending budget request in this post, but we have covered the California Division of Corrections and Rehabilitation (CDCR) BIS Migration to S/four HANA project in a prior publication The 2023-24 Spending budget: The California Division of Corrections and Rehabilitation—Migration of Enterprise Data Technique to Updated Software program Platform (two/16/2023).

Assessment

Elevated Use of Challenge-Primarily based Procurements Without the need of Evaluation. A quantity of the IT project proposals in the Governor’s 2023-24 spending budget utilized challenge-primarily based procurements (such as the State Water Sources Handle Board’s Water Rights Modernization Continuation proposal) or are organizing to use stated procurements. Some procurements may possibly call for upfront funding from the state for demonstrations, proofs of notion, and prototypes (such as the Division of Meals and Agriculture’s Emerging Threats Data Management Technique proposal). Having said that, we have observed no evaluation performed by the administration of challenge-primarily based procurements to ascertain no matter if, for instance, further organizing expenses for these demonstrations, proofs of notion, and prototypes led to enhanced project D&ampI outcomes.

Massive Enterprise Modernization Efforts Make Legislative Oversight Extra Difficult. Two IT project proposals in the Governor’s 2023-24 budget—DHCS’s MES Modernization proposal and EDD’s EDDNext Modernization proposal—are enterprise modernization efforts that include a quantity of IT projects in various phases of PAL, D&ampI, and M&ampO. For each of the efforts, the Legislature authorized quarterly reporting specifications and, for MES Modernization, CDT began portfolio-level independent project oversight reports to track IT efforts and projects that are portion of the bigger modernization work. In each circumstances, we discover these oversight tools to be insufficient to monitor complicated and pricey modernization efforts with important programmatic effects. For instance, although person efforts and projects are tracked inside the portfolio, what efforts or projects are most vital to the good results of the modernization work and/or pose the most danger if they are not prosperous frequently is unclear. Also, programmatic effects are not usually evident, as person efforts and projects could possibly be focused on modernization of technical functions inside IT systems (such as claims processing or drawing down federal funds) rather than particular applications and/or solutions. Recognizing how substantially a complicated, massive modernization work will expense and more than what time frame also is complicated for the Legislature to oversee as the scope of the work is not usually recognized at the outset.

Projects Increasingly Use Combined Agile and Standard D&ampI Approaches With Mixed Benefits. We discover that far more IT project management employees are familiar with the agile method to project D&ampI. We also discover that far more projects acknowledge the realities each of the annual legislative spending budget procedure and of state entities’ continued programmatic responsibilities that necessitate some components of the regular method to project D&ampI. Combinations of agile and regular approaches to project D&ampI, consequently, are becoming far more prevalent. For instance, for the Division of Social Services’ Youngster Welfare Solutions – California Automated Response and Engagement Technique project, the project D&ampI method changed to a mixture of agile and regular approaches simply because county eligibility workers necessary to limit the quantity of user testing and instruction essential. Discrete releases of new functionalities, rather than continuous implementation of new functionalities, permits workers to continue to concentrate on their principal workload. Having said that, we discover that new oversight tools from CDT for agile or combined agile and regular projects are insufficient. For instance, CDT introduced an annual iterative project report (IPR) for authorized IT projects making use of an agile or combined agile and regular method to enable, for instance, reprioritization of modules without the need of a Particular Project Report (SPR). (An SPR is a report essential for projects that deviate from their baseline expense, schedule, and scope by about 10 percent.) Having said that, the IPR as introduced may possibly compromise legislative oversight if the project expense, schedule, and scope modify on an annual basis without the need of clear measures of good results.

Choices for Legislative Consideration

Direct CDT and DOF to Lead Evaluation of Challenge-Primarily based Procurement Modifications. We propose the Legislature adopt supplemental report language (SRL) that directs each CDT and DOF to evaluate, at a minimum, no matter if further organizing expenses requested by state entities for challenge-primarily based procurements have led to enhanced project D&ampI outcomes. DOF could use quarterly project organizing expenditure reports for proposed IT projects to inform their evaluation. We also propose the Legislature request this report no later than April 1, 2024 to inform the 2024-25 spending budget procedure.

Direct CDT and DOF to Function With Legislature on Oversight of Enterprise Modernization Efforts and Projects Employing Agile Method. We propose the Legislature adopt SRL that directs CDT and DOF to operate with legislative employees on alternatives to strengthen oversight of enterprise modernization efforts and projects making use of an agile method or combined agile and regular approaches to project D&ampI. The report could take into consideration, for instance, no matter if new standardized reports for these efforts and projects, each to CDT and the Legislature, are warranted. The report also could take into consideration no matter if alterations in CDT’s PAL procedure are necessary to regularly strategy these efforts and projects. We also propose the Legislature request this report no later than April 1, 2024 to inform the 2024-25 spending budget procedure.