The 2023-24 Spending budget
Introduction
This post gives an overview of the details technologies (IT) projects in the Governor’s proposed 2023-24 price range. We very first present relevant background details on the California Division of Technologies (CDT) and the phases of an IT project. We then recognize each and every of the price range proposals to program, create, and implement IT projects. We present our assessment of subjects prevalent to many IT project-associated proposals and present choices for legislative consideration. (We do not present in-depth evaluation of any person price range request in the post, but hyperlink to other IT project-associated analyses in other publications organized by price range region.)
Background
Part 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 assessment 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&I), and (three) maintenance and operations (M&O). Most state IT projects in the preparing phase (referred to as proposed projects) are necessary to comprehensive 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. As soon as authorized by way of PAL (referred to as authorized projects), state IT projects commence D&I. As soon as D&I is completed, state entities commence M&O of the IT method. We describe each and every phase in much more detail under:
- Arranging (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 related preparing document to CDT for its approval. Collectively, the preparing documents from the 4 stages present a comprehensive project program which includes the price, schedule, and scope of the project. Figure 1 gives a graphical depiction of the PAL approach.
- D&I. As soon as CDT approves a proposed IT project, state entities can start out project D&I. Projects can method D&I in many techniques: (1) the classic “waterfall” method, (two) the “agile method,” or (three) some mixture of classic and agile approaches. Making use of the classic method, entities create the whole scope of the project just before it is implemented. Making use of the agile method, by contrast, entities create some of the project scope (at times referred to as modules) and implement it when the rest of the scope is getting created. A mixture of the classic and agile approaches could possibly create project scope as modules, but combine the modules into a couple of discrete releases for implementation to decrease the frequency of user testing and instruction.
- M&O. As soon as IT project D&I is completed, a project becomes an IT method and enters M&O. M&O incorporates activities and fees related with a state entity’s ongoing upkeep and continuing use of a method.
Relevant Adjustments to IT Project Procurement and Oversight. Two current adjustments 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 Basic Solutions to create new procurement approaches that defined a issue for bidders to resolve and asked them to demonstrate their capacity to resolve it by way of demonstrations, proofs of idea, and prototypes. We commonly refer to these new approaches as challenge-primarily based procurements in the post. The aim of challenge-primarily based procurements is to let much more bidders to present options to the state’s complicated complications, rather than requiring the state to pre-define options with detailed specifications-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 applying an enterprise project management method (that is, managing a quantity of concurrent and generally associated IT efforts and projects) to modernize their applications and/or solutions. As person IT projects progress by way of various phases, CDT tries to present oversight not only of the person IT project but also of the whole enterprise portfolio of IT efforts and projects. Crucial examples of this method are DHCS’ Medi-Cal Enterprise Systems (MES) Modernization and EDD’s EDDNext modernization work.
Governor’s 2023-24 Spending budget
Governor’s IT Project Proposals Total $641 Million ($432 Million Basic Fund) and 275.two Positions. According to CDT and the Division of Finance (DOF), 40 price range proposals in the Governor’s 2023-24 price range are associated to IT project proposals (Figure 2). These proposals request a total of $641 million ($432 million Basic 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 each and every proposal.
Figure two
Governor’s 2023‑24 Spending budget IT Project Proposalsa
(In Millions)
Entity
Spending budget 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 Arranging
21.five
21.five
—
40.two
DIR
Electronic Adjudication Management Technique Modernization
21.1
—
21.1
—
CARB
Heavy‑Duty Automobile Inspection and Upkeep Plan Per SB 210
14.1
—
14.1
19.
DDS
Uniform Fiscal Technique Modernization and the Customer Electronic Records Management Technique Project Arranging
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 Technique 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 Technique
six.7
four.two
two.five
three.
DCA
Business enterprise Modernization Cohort 1 and two
six.
—
six.
—
Caltrans
Transportation Technique Network Replacement
five.eight
—
five.eight
11.
CARB
Embodied Carbon Emissions: Building Components (AB 2446)
five.7
—
five.7
15.
GovOps
Workplace of the Cradle‑to‑Career Information Technique Right‑Sizing
four.9
four.9
—
ten.
CalEPA
California Environmental Reporting Technique 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: Further Activities and Scope Improve
two.five
two.five
—
—
DGS
Procurement Division E‑Marketplace Implementation
two.four
—
two.four
two.
CalRecycle
CalRecycle Integrated Facts Technique
two.three
—
two.three
four.
CARB
SB 1137 Implementation: Wellness Protection Zones
two.two
—
two.two
9.
OEHHA
Building a Statewide Intense Heat Ranking Technique (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 Protected at Residence (SB 1131)
1.five
1.five
—
six.
CalHR
Communications Workplace and Content material Management Technique Replacement
1.four
1.
.four
two.
CHHS
California Emergency Healthcare Solutions Information Resource Technique
1.1
—
1.1
six.
CalVet
Site Improvement to Improve Digital Communications
1.
1.
—
—
DSS
Reinforce the Caregiver Background Verify Technique and the Background Verify Sources
.9
.9
—
—
DIR
Workers’ Compensation Facts Technique Upgrade
.eight
.eight
—
—
CDFA
IT Enterprise Transition Assistance
.five
.five
—
—
Caltrans
Enterprise Information Governance Technologies Resolution Stage four
.four
—
.four
—
OPR
Programmer Position to Retain and Redesign the CEQA Technique
.three
.three
—
1.
CalEPA
CalEPA Geographic Facts Officer
.three
—
.three
1.
Totals
$641.
$432.
$208.9
$275.two
IT Project-Certain Perform Items
We do not present in-depth evaluation of any person price range 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 Spending budget: The California Division of Corrections and Rehabilitation—Migration of Business enterprise Facts Technique to Updated Computer software Platform (two/16/2023).
Assessment
Elevated Use of Challenge-Primarily based Procurements Devoid of Evaluation. A quantity of the IT project proposals in the Governor’s 2023-24 price range employed challenge-primarily based procurements (such as the State Water Sources Manage Board’s Water Rights Modernization Continuation proposal) or are preparing to use mentioned procurements. Some procurements could demand 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 Technique proposal). Nonetheless, we have noticed no evaluation performed by the administration of challenge-primarily based procurements to decide regardless of whether, for instance, further preparing fees for these demonstrations, proofs of idea, and prototypes led to enhanced project D&I outcomes.
Massive Enterprise Modernization Efforts Make Legislative Oversight Much 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 various phases of PAL, D&I, and M&O. For each of the efforts, the Legislature authorized quarterly reporting specifications and, for MES Modernization, CDT began portfolio-level independent project oversight reports to track IT efforts and projects that are component of the bigger modernization work. In each instances, we discover these oversight tools to be insufficient to monitor complicated and pricey modernization efforts with substantial programmatic effects. For instance, when person efforts and projects are tracked inside the portfolio, what efforts or projects are most crucial to the results of the modernization work and/or pose the most danger if they are not prosperous generally is unclear. Also, programmatic effects are not generally evident, as person efforts and projects could possibly be focused on modernization of technical functions inside IT systems (such as claims processing or drawing down federal funds) rather than particular applications and/or solutions. Being aware of how a lot a complicated, massive modernization work will price and more than what time frame also is tough for the Legislature to oversee as the scope of the work is not generally recognized at the outset.
Projects Increasingly Use Combined Agile and Conventional D&I Approaches With Mixed Benefits. We discover that much more IT project management employees are familiar with the agile method to project D&I. We also discover that much more projects acknowledge the realities each of the annual legislative price range approach and of state entities’ continued programmatic responsibilities that necessitate some components of the classic method to project D&I. Combinations of agile and classic approaches to project D&I, for that reason, are becoming much more prevalent. For instance, for the Division of Social Services’ Kid Welfare Solutions – California Automated Response and Engagement Technique project, the project D&I method changed to a mixture of agile and classic approaches mainly because county eligibility workers required to limit the quantity of user testing and instruction necessary. Discrete releases of new functionalities, rather than continuous implementation of new functionalities, makes it possible for workers to continue to concentrate on their major workload. Nonetheless, we discover that new oversight tools from CDT for agile or combined agile and classic projects are insufficient. For instance, CDT introduced an annual iterative project report (IPR) for authorized IT projects applying an agile or combined agile and classic method to let, for instance, reprioritization of modules devoid of a Unique Project Report (SPR). (An SPR is a report necessary for projects that deviate from their baseline price, schedule, and scope by about 10 percent.) Nonetheless, the IPR as introduced could compromise legislative oversight if the project price, schedule, and scope modify 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 Adjustments. We advocate the Legislature adopt supplemental report language (SRL) that directs each CDT and DOF to evaluate, at a minimum, regardless of whether further preparing fees requested by state entities for challenge-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 advocate the Legislature request this report no later than April 1, 2024 to inform the 2024-25 price range approach.
Direct CDT and DOF to Perform With Legislature on Oversight of Enterprise Modernization Efforts and Projects Making use of Agile Strategy. We advocate the Legislature adopt SRL that directs CDT and DOF to function with legislative employees on choices to enhance oversight of enterprise modernization efforts and projects applying an agile method or combined agile and classic approaches to project D&I. The report could take into account, for instance, regardless of whether new standardized reports for these efforts and projects, each to CDT and the Legislature, are warranted. The report also could take into account regardless of whether adjustments in CDT’s PAL approach are required to regularly program these efforts and projects. We also advocate the Legislature request this report no later than April 1, 2024 to inform the 2024-25 price range approach.