The 2023-24 Price range

Introduction

This post supplies an overview of the data technologies (IT) projects in the Governor’s proposed 2023-24 spending budget. We initially offer relevant background data on the California Division of Technologies (CDT) and the phases of an IT project. We then recognize every of the spending budget proposals to program, create, and implement IT projects. We offer our assessment of subjects frequent to a number of IT project-associated proposals and provide choices for legislative consideration. (We do not offer in-depth evaluation of any person spending budget request in the post, but hyperlink to other IT project-associated 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 overview 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 by way of 3 distinct phases: (1) planning, (two) development and implementation (D&ampI), and (three) maintenance and operations (M&ampO). Most state IT projects in the preparing phase (referred to as proposed projects) are needed to full CDT’s Project Approval Lifecycle (PAL)—the state’s IT project approval approach. Some proposed projects, such as low price and/or low danger projects, are delegated back to entities to program, create, and implement devoid 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. When authorized by way of PAL (referred to as authorized projects), state IT projects start D&ampI. When D&ampI is completed, state entities start M&ampO of the IT program. We describe every phase in extra detail beneath:

• Organizing (PAL). The PAL approach divides state IT project approval into 4 stages: (1) business evaluation, (two) alternatives evaluation, (three) solution evaluation, and (four) project readiness and approval. Every stage in the PAL approach calls for entities to submit an connected preparing document to CDT for its approval. Collectively, the preparing documents from the 4 stages offer a full project program such as the price, schedule, and scope of the project. Figure 1 supplies a graphical depiction of the PAL approach.
• D&ampI. When CDT approves a proposed IT project, state entities can start out project D&ampI. Projects can strategy D&ampI in a number of techniques: (1) the standard “waterfall” strategy, (two) the “agile strategy,” or (three) some mixture of standard and agile approaches. Working with the standard strategy, entities create the whole scope of the project just before it is implemented. Working with the agile strategy, by contrast, entities create some of the project scope (at times referred to as modules) and implement it even though the rest of the scope is becoming created. A mixture of the standard and agile approaches may well create project scope as modules, but combine the modules into a couple of discrete releases for implementation to lower the frequency of user testing and instruction.
• M&ampO. When IT project D&ampI is completed, a project becomes an IT program and enters M&ampO. M&ampO contains activities and fees connected with a state entity’s ongoing upkeep and continuing use of a program.

Relevant Alterations to IT Project Procurement and Oversight. Two current modifications 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 potential to resolve it by way of demonstrations, proofs of idea, and prototypes. We normally refer to these new approaches as challenge-primarily based procurements in the post. The objective of challenge-primarily based procurements is to let extra bidders to provide options to the state’s complicated challenges, rather than requiring the state to pre-define options with detailed needs-primarily based solicitations.
• Enterprise Modernization Efforts. Massive state entities such as the Division of Wellness Care Solutions (DHCS) and the Employment Improvement Division (EDD) are utilizing an enterprise project management strategy (that is, managing a quantity of concurrent and frequently associated IT efforts and projects) to modernize their applications and/or solutions. As person IT projects progress by way of distinctive phases, CDT tries to offer oversight not only of the person IT project but also of the whole enterprise portfolio of IT efforts and projects. Essential examples of this strategy are DHCS’ Medi-Cal Enterprise Systems (MES) Modernization and EDD’s EDDNext modernization work.

Governor’s 2023-24 Price range

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 associated 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-associated funding and/or positions, as we are unable to separate IT project-associated and non-IT project-associated fees in every proposal.

Figure two

Governor’s 2023‑24 Price range IT Project Proposalsa

(In Millions)

Entity

Price range 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 Wellness Records Organizing

21.five

21.five

—

40.two

DIR

Electronic Adjudication Management Method Modernization

21.1

—

21.1

—

CARB

Heavy‑Duty Automobile Inspection and Upkeep Plan Per SB 210

14.1

—

14.1

19.

DDS

Uniform Fiscal Method Modernization and the Customer Electronic Records Management Method Project Organizing

12.7

12.7

—

—

DIR

Cal/OSHA Information Modernization Project

12.six

—

12.six

—

CDCR

eDiscovery Ongoing Requirements

ten.

ten.

—

11.

CHP

Wireless Mobile Video/Audio Recording Method 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 Facts Management Method

six.7

four.two

two.five

three.

DCA

Organization Modernization Cohort 1 and two

six.

—

six.

—

Caltrans

Transportation Method 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 Method Right‑Sizing

four.9

four.9

—

ten.

CalEPA

California Environmental Reporting Method 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 Check out Verification Phase II

two.9

.7

two.two

three.

CalVet

CalVet Electronic Wellness Record Project: More Activities and Scope Enhance

two.five

two.five

—

—

DGS

Procurement Division E‑Marketplace Implementation

two.four

—

two.four

two.

CalRecycle

CalRecycle Integrated Facts Method

two.three

—

two.three

four.

CARB

SB 1137 Implementation: Wellness Protection Zones

two.two

—

two.two

9.

OEHHA

Building a Statewide Intense Heat Ranking Method (AB 2238)

two.two

two.two

—

four.

CDFA

Stage Gate two Planning—CDFA Licensing and Payment Portal

1.five

1.five

—

—

SOS

Public Entity Staff and Contractors Access to Secure at Residence (SB 1131)

1.five

1.five

—

six.

CalHR

Communications Workplace and Content material Management Method Replacement

1.four

1.

.four

two.

CHHS

California Emergency Healthcare Solutions Information Resource Method

1.1

—

1.1

six.

CalVet

Internet site Improvement to Boost Digital Communications

1.

1.

—

—

DSS

Reinforce the Caregiver Background Verify Method and the Background Verify Sources

.9

.9

—

—

DIR

Workers’ Compensation Facts Method Upgrade

.eight

.eight

—

—

CDFA

IT Enterprise Transition Help

.five

.five

—

—

Caltrans

Enterprise Information Governance Technologies Resolution Stage four

.four

—

.four

—

OPR

Programmer Position to Sustain and Redesign the CEQA Method

.three

.three

—

1.

CalEPA

CalEPA Geographic Facts Officer

.three

—

.three

1.

Totals

$641.

$432.

$208.9

$275.two

IT Project-Distinct Perform Solutions

We do not offer 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 Price range: The California Division of Corrections and Rehabilitation—Migration of Organization Facts Method to Updated Application Platform (two/16/2023).

Assessment

Enhanced Use of Challenge-Primarily based Procurements With no Evaluation. A quantity of the IT project proposals in the Governor’s 2023-24 spending budget employed challenge-primarily based procurements (such as the State Water Sources Handle Board’s Water Rights Modernization Continuation proposal) or are preparing to use mentioned procurements. Some procurements may well call for upfront funding from the state for demonstrations, proofs of idea, and prototypes (such as the Division of Meals and Agriculture’s Emerging Threats Facts Management Method proposal). Nevertheless, we have noticed no evaluation performed by the administration of challenge-primarily based procurements to ascertain irrespective of whether, for instance, more preparing fees for these demonstrations, proofs of idea, and prototypes led to enhanced project D&ampI outcomes.

Massive Enterprise Modernization Efforts Make Legislative Oversight Far more 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 distinctive phases of PAL, D&ampI, and M&ampO. For each of the efforts, the Legislature authorized quarterly reporting needs and, for MES Modernization, CDT began portfolio-level independent project oversight reports to track IT efforts and projects that are element of the bigger modernization work. In each instances, we uncover these oversight tools to be insufficient to monitor complicated and pricey modernization efforts with important programmatic effects. For instance, even though person efforts and projects are tracked inside the portfolio, what efforts or projects are most important to the results of the modernization work and/or pose the most danger if they are not thriving frequently is unclear. Also, programmatic effects are not usually evident, as person efforts and projects may well be focused on modernization of technical functions inside IT systems (such as claims processing or drawing down federal funds) rather than specific applications and/or solutions. Being aware of how considerably a complicated, substantial modernization work will price and more than what time frame also is hard for the Legislature to oversee as the scope of the work is not usually identified at the outset.

Projects Increasingly Use Combined Agile and Conventional D&ampI Approaches With Mixed Final results. We uncover that extra IT project management employees are familiar with the agile strategy to project D&ampI. We also uncover that extra projects acknowledge the realities each of the annual legislative spending budget approach and of state entities’ continued programmatic responsibilities that necessitate some components of the standard strategy to project D&ampI. Combinations of agile and standard approaches to project D&ampI, for that reason, are becoming extra frequent. For instance, for the Division of Social Services’ Kid Welfare Solutions – California Automated Response and Engagement Method project, the project D&ampI strategy changed to a mixture of agile and standard approaches simply because county eligibility workers required to limit the quantity of user testing and instruction needed. Discrete releases of new functionalities, rather than continuous implementation of new functionalities, enables workers to continue to concentrate on their principal workload. Nevertheless, we uncover that new oversight tools from CDT for agile or combined agile and standard projects are insufficient. For instance, CDT introduced an annual iterative project report (IPR) for authorized IT projects utilizing an agile or combined agile and standard strategy to let, for instance, reprioritization of modules devoid of a Unique Project Report (SPR). (An SPR is a report needed for projects that deviate from their baseline price, schedule, and scope by around 10 percent.) Nevertheless, the IPR as introduced may well compromise legislative oversight if the project price, schedule, and scope transform on an annual basis devoid of clear measures of results.

Selections for Legislative Consideration

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

Direct CDT and DOF to Perform With Legislature on Oversight of Enterprise Modernization Efforts and Projects Working with Agile Method. We suggest the Legislature adopt SRL that directs CDT and DOF to operate with legislative employees on choices to boost oversight of enterprise modernization efforts and projects utilizing an agile strategy or combined agile and standard approaches to project D&ampI. The report could look at, for instance, irrespective of whether new standardized reports for these efforts and projects, each to CDT and the Legislature, are warranted. The report also could look at irrespective of whether modifications in CDT’s PAL approach are required to regularly program these efforts and projects. We also suggest the Legislature request this report no later than April 1, 2024 to inform the 2024-25 spending budget approach.