JFAC approves major IT consolidation, adds staff and language for cash reconciliation

The Joint Finance-Appropriations Committee on Thursday approved a package of Office of Information Technology Services enhancements that includes enterprise security, hardware replacements and a large IT modernization that transfers dozens of positions from the Department of Health and Welfare into OITS.

Christopher LaHoset, a budget and policy analyst with the Legislative Services Office, told the committee the OITS modernization would add 59.5 full-time-equivalent positions and roughly $10.68 million across general, dedicated and federal funds for FY2027. "The agency is authorized to receive payments from other state agencies for IT services ..." he said while explaining the statewide cost allocation model and the rationale for the requested funding.

A committee member who spoke for the motion described enhancement number 1 as primarily firewall hardware for statewide enterprise security. "It's very important," the committee member said.

Members approved a separate, one-time cash-transfer language tied to the modernization: a $458,700 transfer from the general fund to the administrative and accounting services (SWICAP) fund to cover transition-year health insurance costs for the roughly 58 Department of Health and Welfare employees moving to OITS. The language requires that the cash transfer be used only for that purpose and directs any unspent appropriation to revert to the general fund and be reported to the Legislative Services Office.

The committee also adopted an associated motion that adds ongoing and one-time funding for firewall appliances, OITS hardware replacement, and funding to support the final phase of IT consolidation. Votes on the package carried in both the Senate and House members of the joint committee and the item will be forwarded with a "due pass" recommendation.

Why it matters: The vote moves forward a multi-year consolidation of state IT services intended to centralize cybersecurity and technical support. The transferred positions and the temporary cash transfer are intended to smooth benefits and cost-allocation impacts during the transition.

What’s next: Committee language requires the roll-call vote on the cash transfer; the package will proceed with a due-pass recommendation to the full legislature for consideration during formal budget adoption.