BOE says aging mainframe risks property tax administration; seeks multi‑year IT funding

The State Board of Equalization presented a budget change proposal for a comprehensive modernization of the State Assessed Properties system, which values utilities, railroads and VOIP companies. Jack McColl, chief of the state assessed properties division, told the Senate subcommittee the BOE's patchwork of technologies is more than 30 years old, heavily reliant on manual data entry and printing, and poses cybersecurity and continuity risks.

McColl said the proposal would replace failing systems, improve data integrity, streamline workflows, and enable better taxpayer services. The BCP requests $3.2 million in 2026‑27 and $3.1 million in 2027‑28 (figures cited during testimony) to begin modernization. "The legacy mainframe system can no longer be updated to improve agency efficiencies," McColl said, adding staff now spend half their filing season manually entering data.

The Legislative Analyst's Office and Department of Finance said they did not object to the technical case but urged caution given the state’s fiscal constraints. LAO analyst Alex Benz suggested the Legislature set a higher bar for new IT projects and asked BOE to outline consequences of delaying the project so lawmakers can prioritize among competing demands.

Senators expressed support for improved automation while also asking about projected revenue gains from increased audits and whether audit capacity exists to realize those gains. BOE said improved systems could increase audit productivity and allow staff to shift toward higher‑value appraisals and audits.

The subcommittee held the item open for further review and asked BOE to provide additional information on cost‑benefit timing and risk mitigation plans.