Appropriations Committee hears DHR on FY27 budget, Workday ERP and classification modernization
January 31, 2026 | Appropriations, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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The House Appropriations Committee on Jan. 30 heard the Department of Human Resources present its FY27 budget and long-term modernization plans.
Beth Fastigi, commissioner of the Department of Human Resources, told the committee the department is largely funded through internal service funds and that "it's 83% of our funding, through internal service funds." She said more than 80% of the agency's budget covers personnel and that the governor's recommended FY27 budget represents roughly a 5% increase, primarily to cover salary and benefits costs.
Fastigi highlighted two multi-year initiatives. The classification modernization project seeks to replace the department's roughly 40‑year‑old Willis points system with a new architecture for comparing jobs vertically and horizontally across state government. "We're really trying to focus ... using our merit policy," she said, describing a shift toward scheduled reviews and market-factor tools rather than ad hoc class reviews.
The department also described a statewide enterprise resource planning (ERP) project to update VTHR, accounting and budgeting systems (Workday/ERP). Fastigi said the state's budgeting module already went live and the DHR portion is "our scheduled go live day is this fall." Committee members and staff discussed prior appropriations for the project and the contractors supporting it; Fastigi named Guidehouse as the primary implementer and an additional firm as business process transformation partner.
On funding to date, DHR staff told the committee prior appropriations from 2022 have financed implementation work. According to staff, about $9.7 million of that appropriation has been spent through January, with roughly $3 million remaining to cover implementation costs.
Commissioners and members pressed on timelines and fiscal risk. Fastigi said architecture and configuration work intensified this year and that the classification and ERP projects remain multi-phase efforts likely to extend over months to years. She emphasized that class‑review outcomes can create unplanned budgetary pressure and must be managed alongside other compensation tools.
The committee paused the session for a brief break before the Department of Corrections presentation scheduled for 2:00 p.m.
Beth Fastigi, commissioner of the Department of Human Resources, told the committee the department is largely funded through internal service funds and that "it's 83% of our funding, through internal service funds." She said more than 80% of the agency's budget covers personnel and that the governor's recommended FY27 budget represents roughly a 5% increase, primarily to cover salary and benefits costs.
Fastigi highlighted two multi-year initiatives. The classification modernization project seeks to replace the department's roughly 40‑year‑old Willis points system with a new architecture for comparing jobs vertically and horizontally across state government. "We're really trying to focus ... using our merit policy," she said, describing a shift toward scheduled reviews and market-factor tools rather than ad hoc class reviews.
The department also described a statewide enterprise resource planning (ERP) project to update VTHR, accounting and budgeting systems (Workday/ERP). Fastigi said the state's budgeting module already went live and the DHR portion is "our scheduled go live day is this fall." Committee members and staff discussed prior appropriations for the project and the contractors supporting it; Fastigi named Guidehouse as the primary implementer and an additional firm as business process transformation partner.
On funding to date, DHR staff told the committee prior appropriations from 2022 have financed implementation work. According to staff, about $9.7 million of that appropriation has been spent through January, with roughly $3 million remaining to cover implementation costs.
Commissioners and members pressed on timelines and fiscal risk. Fastigi said architecture and configuration work intensified this year and that the classification and ERP projects remain multi-phase efforts likely to extend over months to years. She emphasized that class‑review outcomes can create unplanned budgetary pressure and must be managed alongside other compensation tools.
The committee paused the session for a brief break before the Department of Corrections presentation scheduled for 2:00 p.m.
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