The 2023-24 Price tag variety
Introduction
This post provides an overview of the information technologies (IT) projects in the Governor’s proposed 2023-24 spending price range. We initially provide relevant background information on the California Division of Technologies (CDT) and the phases of an IT project. We then identify each and every and each and every of the spending price range proposals to method, build, and implement IT projects. We provide our assessment of subjects widespread to a quantity of IT project-connected proposals and provide possibilities for legislative consideration. (We do not provide in-depth evaluation of any individual spending price range request in the post, but hyperlink to other IT project-connected analyses in other publications organized by spending price range place.)
Background
Aspect of CDT. CDT is an entity inside the Government Operations Agency with broad authority extra than all components of technologies in state government. This post focuses on two of the department’s responsibilities: (1) to evaluation 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 suggests of three distinct phases: (1) planning, (two) development and implementation (D&I), and (3) maintenance and operations (M&O). Most state IT projects in the preparing phase (referred to as proposed projects) are required to total CDT’s Project Approval Lifecycle (PAL)—the state’s IT project approval course of action. Some proposed projects, such as low expense and/or low danger projects, are delegated back to entities to method, build, and implement with no the will need of direct approval and oversight by CDT. Other proposed projects are determined to be exempt from PAL, for instance, minor upgrades to existing IT systems. As quickly as authorized by suggests of PAL (referred to as authorized projects), state IT projects get started D&I. As quickly as D&I is completed, state entities get started M&O of the IT system. We describe each and every and each and every phase in far extra detail beneath:
- Arranging (PAL). The PAL course of action divides state IT project approval into four stages: (1) business evaluation, (two) alternatives evaluation, (3) solution evaluation, and (4) project readiness and approval. Each and every stage in the PAL course of action calls for entities to submit an linked preparing document to CDT for its approval. Collectively, the preparing documents from the four stages provide a total project method like the expense, schedule, and scope of the project. Figure 1 provides a graphical depiction of the PAL course of action.
- D&I. As quickly as CDT approves a proposed IT project, state entities can get started off project D&I. Projects can method D&I in a quantity of approaches: (1) the standard “waterfall” method, (two) the “agile method,” or (3) some mixture of standard and agile approaches. Operating with the standard method, entities build the entire scope of the project ahead of it is implemented. Operating with the agile method, by contrast, entities build some of the project scope (frequently referred to as modules) and implement it even though the rest of the scope is finding designed. A mixture of the standard and agile approaches may possibly possibly build project scope as modules, but combine the modules into a couple of discrete releases for implementation to lessen the frequency of user testing and education.
- M&O. As quickly as IT project D&I is completed, a project becomes an IT system and enters M&O. M&O consists of activities and expenditures linked with a state entity’s ongoing upkeep and continuing use of a system.
Relevant Adjustments to IT Project Procurement and Oversight. Two existing adjustments to state IT project procurement and oversight are relevant to this post.
- Challenge-Mostly primarily based Procurements. In January 2019, Governor Newsom signed an executive order (EO N-04-19) directing CDT and the Division of Frequent Options to build new procurement approaches that defined a dilemma for bidders to resolve and asked them to demonstrate their prospective to resolve it by suggests of demonstrations, proofs of notion, and prototypes. We regularly refer to these new approaches as challenge-mostly primarily based procurements in the post. The aim of challenge-mostly primarily based procurements is to allow far extra bidders to provide possibilities to the state’s complex complications, rather than requiring the state to pre-define possibilities with detailed requires-mostly primarily based solicitations.
- Enterprise Modernization Efforts. Substantial state entities such as the Division of General overall health Care Options (DHCS) and the Employment Improvement Division (EDD) are producing use of an enterprise project management method (that is, managing a quantity of concurrent and regularly connected IT efforts and projects) to modernize their applications and/or options. As individual IT projects progress by suggests of distinctive phases, CDT tries to provide oversight not only of the individual IT project but also of the entire enterprise portfolio of IT efforts and projects. Essential examples of this method are DHCS’ Medi-Cal Enterprise Systems (MES) Modernization and EDD’s EDDNext modernization operate.
Governor’s 2023-24 Price tag variety
Governor’s IT Project Proposals Total $641 Million ($432 Million Frequent Fund) and 275.two Positions. According to CDT and the Division of Finance (DOF), 40 spending price range proposals in the Governor’s 2023-24 spending price range are connected to IT project proposals (Figure 2). These proposals request a total of $641 million ($432 million Frequent Fund) and 275.two positions. Some of these proposals incorporate non-IT project-connected funding and/or positions, as we are unable to separate IT project-connected and non-IT project-connected expenditures in each and every and each and every proposal.
Figure two
Governor’s 2023‑24 Price tag variety IT Project Proposalsa
(In Millions)
Entity
Price tag variety Alter Proposal Name
2023‑24b
TF
GF
OF
Positions
EDD
EDDNext Modernization
$198.
$99.
$99.
—
FTB
Enterprise Details to Revenue Project two
135.
135.
—
$72.
CDCR
Statewide Correctional Video Surveillance Continuation
87.7
87.7
—
19.
SWRCB
Water Rights Modernization Continuation
31.5
31.5
—
—
DSH
Electronic General overall health Records Arranging
21.5
21.5
—
40.two
DIR
Electronic Adjudication Management System Modernization
21.1
—
21.1
—
CARB
Heavy‑Duty Vehicle Inspection and Upkeep Program Per SB 210
14.1
—
14.1
19.
DDS
Uniform Fiscal System Modernization and the Client Electronic Records Management System Project Arranging
12.7
12.7
—
—
DIR
Cal/OSHA Details Modernization Project
12.six
—
12.six
—
CDCR
eDiscovery Ongoing Specifications
ten.
ten.
—
11.
CHP
Wireless Mobile Video/Audio Recording System and Body‑Worn Camera Statewide Implementation
9.eight
—
9.eight
11.
CDCR
BIS Migration to S/4 HANA
eight.1
eight.1
—
—
DHCS
Medi‑Cal Enterprise Systems Modernization
7.eight
1.4
six.4
7.
CDFA
Emerging Threats Information Management System
six.7
4.two
two.5
3.
DCA
Compact business enterprise Modernization Cohort 1 and two
six.
—
six.
—
Caltrans
Transportation System Network Replacement
5.eight
—
5.eight
11.
CARB
Embodied Carbon Emissions: Constructing Supplies (AB 2446)
5.7
—
5.7
15.
GovOps
Workplace of the Cradle‑to‑Career Details System Right‑Sizing
4.9
4.9
—
ten.
CalEPA
California Environmental Reporting System Project
4.3
—
4.3
—
SOS
Notary Automation Program Replacement Project (NAP two.)
3.six
—
3.six
two.
CDPH
California Newborn Screening Program Expansion
3.5
—
3.5
4.
DPR
California Pesticide Electronic Submission Tracking (CalPEST) Project
3.3
—
3.3
two.
SOS
Disqualification from Voting (AB 2841)
3.1
3.1
—
11.
CHHS
Electronic Spend a take a look at to Verification Phase II
two.9
.7
two.two
3.
CalVet
CalVet Electronic General overall health Record Project: A lot more Activities and Scope Enhance
two.5
two.5
—
—
DGS
Procurement Division E‑Marketplace Implementation
two.4
—
two.4
two.
CalRecycle
CalRecycle Integrated Information System
two.3
—
two.3
4.
CARB
SB 1137 Implementation: General overall health Protection Zones
two.two
—
two.two
9.
OEHHA
Constructing a Statewide Intense Heat Ranking System (AB 2238)
two.two
two.two
—
4.
CDFA
Stage Gate two Planning—CDFA Licensing and Payment Portal
1.5
1.5
—
—
SOS
Public Entity Personnel and Contractors Access to Protected at House (SB 1131)
1.5
1.5
—
six.
CalHR
Communications Workplace and Content material material Management System Replacement
1.4
1.
.4
two.
CHHS
California Emergency Healthcare Options Details Resource System
1.1
—
1.1
six.
CalVet
Internet web page Improvement to Enhance Digital Communications
1.
1.
—
—
DSS
Reinforce the Caregiver Background Confirm System and the Background Confirm Sources
.9
.9
—
—
DIR
Workers’ Compensation Information System Upgrade
.eight
.eight
—
—
CDFA
IT Enterprise Transition Help
.5
.5
—
—
Caltrans
Enterprise Details Governance Technologies Resolution Stage 4
.4
—
.4
—
OPR
Programmer Position to Sustain and Redesign the CEQA System
.3
.3
—
1.
CalEPA
CalEPA Geographic Information Officer
.3
—
.3
1.
Totals
$641.
$432.
$208.9
$275.two
IT Project-Specific Operate Things
We do not provide in-depth evaluation of any individual spending price range request in this post, but we have covered the California Division of Corrections and Rehabilitation (CDCR) BIS Migration to S/4 HANA project in a prior publication The 2023-24 Price tag variety: The California Division of Corrections and Rehabilitation—Migration of Compact business enterprise Information System to Updated Application Platform (two/16/2023).
Assessment
Elevated Use of Challenge-Mostly primarily based Procurements With out Evaluation. A quantity of the IT project proposals in the Governor’s 2023-24 spending price range employed challenge-mostly primarily based procurements (such as the State Water Sources Deal with Board’s Water Rights Modernization Continuation proposal) or are preparing to use described procurements. Some procurements may possibly possibly contact for upfront funding from the state for demonstrations, proofs of notion, and prototypes (such as the Division of Meals and Agriculture’s Emerging Threats Information Management System proposal). Getting stated that, we have observed no evaluation performed by the administration of challenge-mostly primarily based procurements to establish no matter if, for instance, additional preparing expenditures for these demonstrations, proofs of notion, and prototypes led to enhanced project D&I outcomes.
Substantial Enterprise Modernization Efforts Make Legislative Oversight Additional Tricky. 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 incorporate a quantity of IT projects in distinctive phases of PAL, D&I, and M&O. For each and every of the efforts, the Legislature authorized quarterly reporting requires and, for MES Modernization, CDT started portfolio-level independent project oversight reports to track IT efforts and projects that are element of the larger modernization operate. In each and every situations, we find these oversight tools to be insufficient to monitor complex and costly modernization efforts with essential programmatic effects. For instance, even though individual efforts and projects are tracked inside the portfolio, what efforts or projects are most essential to the excellent benefits of the modernization operate and/or pose the most danger if they are not productive regularly is unclear. Also, programmatic effects are not consistently evident, as individual efforts and projects may possibly possibly be focused on modernization of technical functions inside IT systems (such as claims processing or drawing down federal funds) rather than certain applications and/or options. Figuring out how a terrific deal a complex, substantial modernization operate will expense and extra than what time frame also is difficult for the Legislature to oversee as the scope of the operate is not consistently recognized at the outset.
Projects Increasingly Use Combined Agile and Common D&I Approaches With Mixed Rewards. We find that far extra IT project management workers are familiar with the agile method to project D&I. We also find that far extra projects acknowledge the realities each and every of the annual legislative spending price range course of action and of state entities’ continued programmatic responsibilities that necessitate some elements of the standard method to project D&I. Combinations of agile and standard approaches to project D&I, as a result, are becoming far extra widespread. For instance, for the Division of Social Services’ Kid Welfare Options – California Automated Response and Engagement System project, the project D&I method changed to a mixture of agile and standard approaches mostly due to the fact county eligibility workers required to limit the quantity of user testing and education required. Discrete releases of new functionalities, rather than continuous implementation of new functionalities, permits workers to continue to concentrate on their crucial workload. Getting stated that, we find 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 producing use of an agile or combined agile and standard method to allow, for instance, reprioritization of modules with no the will need of a One of a kind Project Report (SPR). (An SPR is a report required for projects that deviate from their baseline expense, schedule, and scope by about 10 percent.) Getting stated that, the IPR as introduced may possibly possibly compromise legislative oversight if the project expense, schedule, and scope alter on an annual basis with no the will need of clear measures of excellent benefits.
Possibilities for Legislative Consideration
Direct CDT and DOF to Lead Evaluation of Challenge-Mostly primarily based Procurement Adjustments. We recommend the Legislature adopt supplemental report language (SRL) that directs each and every CDT and DOF to evaluate, at a minimum, no matter if additional preparing expenditures requested by state entities for challenge-mostly primarily based procurements have led to enhanced project D&I outcomes. DOF could use quarterly project preparing expenditure reports for proposed IT projects to inform their evaluation. We also recommend the Legislature request this report no later than April 1, 2024 to inform the 2024-25 spending price range course of action.
Direct CDT and DOF to Operate With Legislature on Oversight of Enterprise Modernization Efforts and Projects Operating with Agile Approach. We recommend the Legislature adopt SRL that directs CDT and DOF to execute with legislative workers on possibilities to strengthen oversight of enterprise modernization efforts and projects producing use of an agile method or combined agile and standard approaches to project D&I. The report could take into consideration, for instance, no matter if new standardized reports for these efforts and projects, each and every to CDT and the Legislature, are warranted. The report also could take into consideration no matter if adjustments in CDT’s PAL course of action are required to consistently method these efforts and projects. We also recommend the Legislature request this report no later than April 1, 2024 to inform the 2024-25 spending price range course of action.
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