Senate panel approves DFA budget after hearing major IT and public-safety investments

The Senate Finance, Ways and Means Committee approved the Department of Finance & Administration's budget after presentations from agency leaders that highlighted large technology and public-safety investments and prompted detailed member questioning about oversight.

Eugene Neubert provided a high-level overview, saying the DFA total budget is about $719.8 million, with roughly $38.7 million in state funds, $4.8 million in reductions and $10 million in cost increases. He also noted nonrecurring appropriations the agency will administer.

Jennifer Brinkman, director of the Office of Criminal Justice Programs, described two targeted investments in the governor's budget: $1.7 million in recurring funding to bolster anti-human-trafficking victim services statewide and $80 million in nonrecurring funding for crime intervention and prevention in Memphis to move earlier intervention work toward longer-term stabilization.

Kristen Darby, chief information officer for Strategic Technology Solutions (STS), detailed major IT proposals: a $50 million AI investment divided into pilot projects, enterprise infrastructure and governance; a $70 million request for enterprise resource planning (ERP) modernization to replace the Edison system (which supports users across state agencies, local governments and education partners); and $20 million for the North data center vacate (phase 2). Darby said the package aims to limit recurring growth, require pilots before statewide scaling and reduce vendor dependency through an AI innovation lab and governance platform.

Senators questioned the level of STS's involvement in the AOC e-filing procurement and whether the Information Systems Council (ISC) review and legislative oversight would be sufficient to prevent cost overruns. STS said it provided technical advice, RFP and cybersecurity guidance and supported CPO during procurement but was not on the selection committee; an ISC project status report is scheduled for March.

After discussion the committee moved and approved the DFA budget as presented. Members asked staff and agency leaders to provide follow-up detail on procurement oversight and project timelines as projects advance.