Transcript Highlights:

• A lot of your budgeting, budget forecast... Module. That's where your bank recon happens.
• A lot of your budgeting, budget forecasting, things like that happen within EPM.
• It allows us to budget, especially in a time where budgets are getting tighter.
• I mean, it's in software hospice.
• And so I think if I understand the budgeting process correctly, that, but, um, If I understand the budgeting

Summary: The committee received several informational reports from NDIT and DPI. Justin Data reviewed the quarterly major IT project portfolio, noting the portfolio was slightly under budget and behind schedule overall, with three red schedule items: Bed Management System and Vital Records were essentially complete and being closed out, and the Roadway Capital Planning Project was delayed by vendor bug fixes after testing. He also summarized recent project startups and closeouts, including the Victim Notification System, Medicaid data exchange, Highway Patrol’s motor carrier permit system, and several completed HHS and RIMS projects. Members asked for follow-up on ADA compliance work, the public-facing RIO website, and the state’s mainframe retirement timeline, and staff agreed to provide updates later. Craig Falkley reported on coordination of services with political subdivisions and higher education, including StageNet, cybersecurity, radio/911 services, and PeopleSoft coordination. He also explained distributed ledger technology as a tool for transparency and fraud prevention, but said it is not widely used in state government and suggested the report be modernized to focus more broadly on emerging technologies such as AI and cybersecurity. The committee generally agreed that the topic should be updated. Chris Gurgan presented the mandatory cybersecurity incident reporting program created by HB 1314, explaining how agencies and political subdivisions report incidents through NDIT’s website or service desk. He said 77 incidents had been reported since 2021, 47 met the statutory definition, and most were phishing-related; most reported incidents were resolved, with one recent ransomware matter still open. He also reviewed notable incidents since the last report, including the PowerSchool compromise, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise, and a recent ransomware incident involving a non-state critical infrastructure entity. Members asked about recovery of stolen funds, early warning signs, smishing, training, MFA, conditional access, and cybersecurity maturity assessments; Gurgan said the state uses MFA and conditional access, provides awareness training to state employees, and would return with more information on maturity assessments. Tony Ambrose then updated the committee on the K-12 student information system bridge project. He said district implementation of Infinite Campus had begun statewide, but the data migration vendor originally selected was terminated for poor performance and replaced by Aurora Educational Technology, which had experience with similar statewide migrations. He also said DPI is migrating special education data from Tynet into Infinite Campus, and that some SLDS-based tools such as e-transcripts and Choice Ready may not function exactly as they do now at July 1, requiring interim or alternative solutions. Members raised concerns about summer school disruptions, the timing of the cutover, and whether the new system would support existing reporting and transcript functions; DPI said it was working on identity, authentication, data-sharing agreements, and post-go-live integrations, and would continue to refine the plan beyond June 30.

Transcript Highlights:

• Under that policy, customers who purchase software licenses were free to deploy that software in the
• AI software itself is not expensive.
• So cybersecurity software is another similar one. Cybersecurity software is not expensive.
• If the state wants to say, we're going to buy this cybersecurity software and this productivity software
• Software as a service does not... SaaS software, which is I think what you're asking about.

Keywords: 995, all

Summary: The Joint Committee on State Administration and Regulatory Oversight heard testimony on several procurement-related bills. Senator Lovely and steel industry witnesses supported S. 2167/H. 3411, which would require preference for U.S. manufacturers on public construction projects using steel and other materials. They argued that Canadian and other foreign fabricators underbid Massachusetts firms because of exchange rates, subsidies, and different labor-cost structures, causing local job losses and economic leakage. Committee members asked about tariffs, market share, and whether the bill should be folded into broader municipal legislation; the witnesses said public work should stay in Massachusetts and that the bill would help preserve local industry and jobs. The committee also heard strong support for S. 2107, a bill to increase employment opportunities for people with disabilities in state and municipal contracting. Work Inc. testified that a preference for contractors employing people with disabilities would expand competitive employment, reduce reliance on public assistance, and generate net savings for taxpayers. Members asked about the estimated savings and whether recent federal changes to benefits would affect the numbers; the witness said the figures may need updating but that the underlying employment opportunity remains important. Another bill, H. 3339/S. 2187, would prohibit state and municipal contracts for new artificial turf fields containing zinc, plastic, or intentionally added PFAS. Sponsors and supporters cited health risks, heat retention, injuries, and PFAS contamination, while committee members discussed local bans, disposal problems, and whether indoor facilities or alternative materials could be used. Inspector General Jeffrey Shapiro testified in favor of H. 12 and H. 13, which would update Chapter 30B procurement thresholds and allow municipalities to bundle snow hauling and removal with plowing contracts. He said the changes would give local governments more flexibility, reduce confusion between school and municipal procurement rules, and make snow contracts more attractive to vendors. Members questioned whether quasi-public agencies and state entities should also be subject to 30B, and Shapiro said many public entities have their own procedures but that transparency and fairness should apply across the board. The committee also heard support for S. 2150, a software licensing bill aimed at preventing vendor lock-in by ensuring state agencies can run purchased software in the infrastructure that best fits their needs; the witness said restrictive licensing can drive up costs and create cybersecurity and modernization problems, and that similar laws have already passed in several other states.

Transcript Highlights:

• And the software and the licensing-related costs that were not included in the FY 26 and 27 budget, are
• they increased costs or are they new software maintenance and licensing costs?
• maintenance and the software licenses?
• Are generally tied to the operating budget.
• -year roll down, but it's upgraded based on the software you do every year.

Keywords: 962, all

Summary: The Finance Advisory Committee approved the minutes of its April 2 meeting and then took up three budget transfers. The first, FAC 2026-6 for the Office of the State Treasurer, moved $75,000 from personal services to other expenses to pay for consultant help applying for federal energy credits under the Inflation Reduction Act’s direct pay provisions. Treasurer’s office staff said the agency had one open position and several others pending posting, and members discussed how the transfer related to vacant positions and the committee’s budget display. The second item, FAC 2026-7 for the Office of the State Controller, transferred $700,000 from personal services to other expenses to cover higher Core-CT software maintenance and licensing costs. Comptroller staff said the office had 21 open positions, most in Core-CT, and explained that the system, implemented in 2003, receives regular quarterly and monthly updates from Oracle. Members also discussed how the system serves payroll, HR, purchasing, accounting, and related functions for many state agencies, including UConn and the Board of Regents. The final item, FAC 2026-8 for the Department of Veterans Affairs, transferred $700,000 from personal services, the veterans opportunity pilot, and headstones accounts to other expenses for year-end operational needs. Commissioner Ron Welch said most vacancies were in the skilled nursing facility, food service, and physical plant, with staffing challenges especially for nurses and aides. He also explained that the veterans opportunity pilot never fully launched, that the Institutional General Welfare Fund has been depleted and the agency now relies more on general fund support, and that the department faces rising food, utility, and pharmaceutical costs, including a federal VA reimbursement change that will leave the state responsible for medication costs by 2027. All three transfers were approved, and the meeting adjourned.

Transcript Highlights:

• I'm just curious, you referred to a software.
• In your budget. I mean, this isn't an RSA item.
• For me, if it's within the... ...budget, then I would urge us to try to use the budget for the Department
• And this may be. under the higher ed budget.
• I know that there's two budgets. There's this budget here, and then there is the local.

Summary: The committee first filed a report on the executive protection detail and then reviewed a long list of House and Senate bills that were ready for action, with members instructed to hold any items they wanted removed. The committee then took up several agency requests to amend bills: the Auditor of State’s request for a $370 increase for special deputy expense allowance, the Administrative Office of the Courts’ requests for additional funding for court interpreters and substitute court reporters, and requests tied to local sales tax refunds, county property tax redistribution, emergency medical and law enforcement support, and Northwest Arkansas Community College tornado-related repairs. All of those amendments were adopted, and one amendment on House Bill 1034 was held over at Senator Johnson’s request. A major portion of the meeting focused on an amendment for the Department of Corrections to fund a pilot program using mobile technology to identify and disable illegal inmate cell phones at Varner and Cummins prisons. The bill sponsors and Corrections officials described the problem as a serious public safety issue, saying inmates use contraband phones for criminal activity, trafficking, scams, and outside coordination. Members asked about FCC rules, procurement, whether the system would jam or only identify phones, whether it would affect staff or nearby users, how quickly it would work, whether it would be a one-time or ongoing cost, and whether the department had existing budget authority. Officials said the proposal would require an RFP, that current funding was not available in the department’s budget, and that the technology would be a two-year pilot. The committee ultimately adopted the amendment and then gave the underlying bill a do-pass recommendation. The committee also considered an amendment for the University of Arkansas Division of Agriculture, which sought a $4 million increase in appropriation authority. Senators discussed the division’s role in county extension offices, 4-H, research, and salary competitiveness, while others questioned why the division needed more appropriation room when it already had about $10 million in headroom and had requested a different funding level through higher education. Division representatives said the increase would help with salaries and provide flexibility for future funding, and Higher Education staff clarified the original request and recommendation amounts. After extensive discussion, the committee adopted the amendment and gave it a do-pass recommendation. Finally, the committee began acting on governor’s letters, adopting amendments for a homestead property tax credit increase, insurance department conference travel, property appraisal analysis support, career and technical education professional development, regulatory and casino gaming appropriations, a new program integrity line for the Department of Inspector General, consolidation of licensing board appropriations, deletion of a completed Fort Chaffee Readiness Center appropriation, and a revised reappropriation package for prison expansion that included special language limiting use of the funds. Members asked several questions about the prison reappropriation, including whether it still related to the earlier Calico Rock project and whether special language should be considered separately; the committee moved the governor’s letters forward for drafting and further action.

Transcript Highlights:

• The Justice Cabinet is capital budgets.
• budget request.
• DOC is Kentucky in the previous budget.
• <00:21:30.080> and talk about software maintenance and talk about software maintenance and
• In the last budget session, we received $40 million.

Keywords: 958, all

Summary: The committee heard capital plan presentations from the Justice and Public Safety Cabinet, the Personnel Cabinet, and the School Facilities Construction Commission. The Justice Cabinet described its large portfolio of more than 900 facilities across the state and said decades of underfunded maintenance have created a backlog of repairs. Requested projects included a high-acuity mental health treatment facility for juvenile justice youth, two female detention centers to support the regional detention model, major corrections repairs and replacements, a new kitchen at Eastern Kentucky Correctional Complex, a new dormitory at the Kentucky Correctional Institute for Women, completion of a new Eastern Kentucky prison, DOCJT training facility upgrades in Richmond and Madisonville, State Police radio system replacement and post construction, a combined Frankfort headquarters/Post 12 facility, and expanded crime lab and storage capacity. When asked about the high cost of the EKCC kitchen project, staff said construction inside an operating facility raises costs and that building a new adjacent kitchen would be more economical in the long run. The panel also asked about Fish and Wildlife officers training at DOCJT; staff said they do and that the training is funded through the CLEFT fund. The Justice Cabinet also said the recently enacted Senate Bill 4’s AI inventory and registry requirements would be part of its enterprise application and AI inventory system work. The Personnel Cabinet requested funding to replace CHRIS, the state’s human resources and payroll system, which supports payroll and benefits for about 48,000 employees and the Kentucky Employee Health Plan for roughly 192,000 members. Staff said the current SAP-based system went live in 2011, is approaching end of support in 2030, and has not received functionality enhancements since 2016. They said the replacement is estimated at $151 million, with most of the cost tied to professional services and software, and that the project would begin in July 2026, go live by July 2030, and require a stabilization period through 2032. In response to questions about outsourcing payroll or reusing existing systems, staff said the complexity of state HR, payroll, tax updates, and integrations with other agencies makes outsourcing or partial reuse impractical. The School Facilities Construction Commission introduced its role in helping all 171 school districts address unmet facility needs, focusing on core school facilities such as roofs and elementary buildings rather than athletic projects. No votes or formal actions were taken during the excerpted discussion; the meeting consisted of presentations, explanations of requested projects, and member questions.

Transcript Highlights:

• Living within our means, avoiding unnecessary off-budget ...means, avoiding unnecessary off-budget spending
• The capital budget over the years has evolved into sort of two capital budgets, if you will, statewide
• It’s worth noting that this is a continual piece of software, and it’s more than a piece of software,
• Today we are budgeted for 225 veterans. In our state Budgeted for 225 veterans.
• I know that that money was encumbered from one budget to this budget.

Keywords: 928, house, all

Transcript Highlights:

• The evaluation criteria includes willingness to meet time, budget, time and budget requirements.
• Includes willingness to meet time, budget, time and budget requirements.
• Much like OMB’s budget is one of the last budgets to pass out, NDIT’s budget should be the last or the
• You've seen all the software companies going down in price. ...an impact on software, right?
• It fits in our budget.

Summary: The task force reviewed survey results from state agencies on potential statutory revisions, with Levi reporting 70 proposals from 20 agencies and noting that about 33 might become agency pre-file bills. Members discussed the need to share the survey more broadly within higher education and to better coordinate issues involving IT and other cross-agency functions. The task force then heard from the Office of Management and Budget on three topics: concessions, architect/engineering pre-qualification, and legal notices. OMB said the concessions law is outdated and inconsistent with current practice, and suggested a collaborative rewrite to allow best-value evaluation, raise the threshold, and standardize solicitation templates. On architect/engineering pre-qualification, OMB proposed expanding authority beyond current state-agency limits and creating uniform templates. On legal notices, OMB proposed modernizing publication requirements, exploring online and abbreviated notices, and working with newspapers and other stakeholders on technology and accessibility improvements. Members asked about where concession revenues go, whether political subdivisions must follow the same rules, and how to move from discussion to action. The task force agreed to have OMB work with Legislative Council and affected stakeholders to develop bill drafts, and the motion passed unanimously. The University of North Dakota then presented a series of proposed revisions focused on public buildings and procurement. UND asked to rework the definition of construction so routine maintenance and one-for-one replacements over $250,000 would not automatically trigger public-improvement requirements, suggested raising the threshold to $500,000, and asked for more flexibility based on project complexity and risk. UND also proposed changes to public bid advertisements to reflect electronic bidding, revisions to construction manager-at-risk selection criteria, changes to architect/engineer procurement rules, an increase in the direct-hire design threshold, and a higher legislative-consent threshold for privately funded projects. The task force supported having UND work with counsel and OMB to develop bill drafts, and that motion also passed. The Department of Public Instruction concluded with proposed cleanup to credentialing and education statutes. DPI recommended reviewing its credential categories for relevance, possibly transferring credentialing authority to the Education Standards and Practices Board, removing outdated school safety patrol language, clarifying waiver provisions, and updating dyslexia screening reporting requirements so the statute reflects current practice. Members focused mainly on whether the dyslexia reporting requirement should remain, and DPI said the screening itself would continue even if reporting language were revised. No votes were taken on DPI’s suggestions, and the task force recessed after the presentation.

Transcript Highlights:

• Um, so budget to a standard budget.
• maintenance budget that they have to maintain that software for that.
• to budget that they have to have to maintain<03:09:03.520> that<03:09:03.920> software<
• This is for a billing system software upgrade, and you'll see that in the budget request page 30.
• back<03:49:07.120> four one budget back two budgets back four one budget back two budgets

Keywords: 916, all

Transcript Highlights:

• These projects both finished under budget and ahead of schedule.
• It's green, but it should say under budget.
• It might be worthwhile to take a look at the re- should say under budget, so 41% under budget and more
• It is through the base budget for Human Services.
• It's not about software.

Summary: The Information Technology Committee approved the March 26 minutes and received a series of reports from NDIT on major IT projects, the annual report, mainframe modernization, and cybersecurity services. The project portfolio was reported at 116 major projects with a baseline cost of $546 million, overall under budget but modestly behind schedule. Several projects that had been in variance status last quarter were said to have closed, including HHS bed management, vital records modernization, and DOT roadway capital planning. New startup reports were mostly HHS efforts tied to refugee data management, technical debt cleanup, and legacy application decommissioning, while closeouts included HHS, OMB, DPI, and DOT projects with mixed budget and schedule results. In the annual report discussion, NDIT described its service-fund financials, peer-state rate comparisons, records management reporting, and customer satisfaction efforts. Members asked about how revenues and grants flow through the service fund, how NDIT charges agencies for services, and whether customer satisfaction or CSAT scores are tracked and could be reported more regularly. NDIT said it does track service-team CSAT and survey data, and committee members encouraged more regular reporting of those metrics. The committee also discussed application portfolio management, statewide IT planning, and whether agencies should slow new system replacements while the state pursues an ERP system. The mainframe update focused on the state’s ongoing effort to retire legacy systems by about 2030. NDIT and HHS said the work is being managed as a tech-debt program, but progress is slowed by data cleanup, integration complexity, staff retirements, vendor capacity, and federal requirements. Members asked whether there is a coordinated commitment and whether additional vendor support or consultants are needed; NDIT said it is working jointly with HHS and is seeking an RFP to help accelerate modernization. The cybersecurity presentation then shifted to statewide maturity assessments and services. NDIT said it provides endpoint protection, vulnerability scanning, security awareness training, threat briefings, and penetration testing, and that assessments are based on CIS controls. Members raised concerns about low participation in the self-assessment process, the lack of mandatory reporting or audit authority, and whether insurance incentives through Enderf or possible State Auditor involvement could improve compliance. No formal votes were taken beyond approval of the minutes.

Transcript Highlights:

• That was to cover um the budget.
• this looks like once the software is implemented, because the software does have the capacity for a
• this looks like once the software is implemented, because the software does have the capacity for a
• this looks like once the software is implemented, because the software does have the capacity for a
• move forward with the licensing software move forward with the licensing software and<00:42:03.200

Keywords: Appropriations - Room 216, 5 February, 2026; 8:30 AM, 925, all

Summary: The committee first heard from the Board of Registration for Foresters, which said it is self-funded through applications and renewals and receives no general fund support. The board requested a budget increase from $62,755 to $77,035, mainly for technology upgrades to its database and website, a social media presence, and about $3,000 more for board travel. Members asked about contractual expenses, staffing, renewals, reserves, and office location; the witness said most renewals are now online, the board has a reserve but he did not know the exact amount, and the board is leased space in the Robert E. Lee Building. No vote was taken, and the chair moved on to the next agency. The Mississippi Board of Examiners for Social Workers and Marriage and Family Therapists then presented its budget and operational needs. The board described its 10-member structure, three employees, and oversight of about 4,450 social workers and 210 marriage and family therapists. It explained that a prior $50,000 deficit appropriation was approved too late to spend, and asked to include that amount in the current budget for technology upgrades and equipment. The board also requested salary increases, additional travel funds, money for out-of-state compact participation, more contractual funds for database enhancements and digitizing records, and one additional computer. Members questioned the board about its large cash balance, staffing, office location, and the social work compact; the board said it has about $1 million in cash, is in leased space at Old River Place, and needs database changes to support the compact. No action or vote was taken. Finally, the Cosmetology and Barbering Board discussed major licensing and regulatory changes and its budget request. The board said it had already adopted a passing score for the licensure exam, ended the practical exam, extended testing approval periods, removed barriers to temporary work permits, and opened a path for apprenticeships, mobile establishments, and online licensing software. It also described recommendations in SB 2566, including a low-income first-license fee waiver, sanitation warnings, reduced education and instructor-hour requirements, and removal of some display requirements. The board said these changes had already led to new applications and test signups. On the budget side, it said it was withdrawing a prior request for $6,340 for practical-exam contractors because that exam was eliminated, but still sought $120,000 for certified mail, $49,000 for recruitment and retention salaries, and continued flexibility for possible live-streaming requirements under pending legislation. Senators asked whether the practical exam had been eliminated and whether the board could still ensure competency and inspections; the board said skills are still assessed through program completion and theory testing, and it asked to retain inspector positions because it oversees roughly 6,000 to 6,500 licensed shops and salons with only two inspectors.

Transcript Highlights:

• but we rely on our partners the budget but we rely on our partners in<00:04:18.280> local<00:
• These cities have minimal technology, lack minimal hardware and software capabilities, including basic
• capabilities the remaining and software capabilities the remaining 702<00:08:03.000> cities<00
• lack minimal hardware and software lack minimal hardware and software capabilities<00:08:21.080>
• shortfall year and we view is a budget shortfall year and we view this<00:10:53.160> compromise

Keywords: 1183, house

Transcript Highlights:

• You can't just pull a plug and sit back for a year or two while you put in new software because people
• The integration layer kind of lays on top of our old software and puts a modern face on it.
• It won't be as good as the new software, but it'll be much better than what we have today, and I look
• That Inspector General's office will also need software in order to do its work.
• That Inspector General's office will also need software in order to do its work.

Keywords: 919, house, all

Summary: The House took up Senate File 334, a bill to modernize Minnesota’s county-administered human services technology systems, including those used for Medicaid, SNAP, and related programs. The author described the current systems as outdated “green screen” platforms from the late 1980s and early 1990s that are cumbersome for county workers, slow service delivery, and make it harder to retain staff. The bill would create an integration layer over legacy systems, establish a long-term technology modernization fund with about $90 million in spending over time and a $50 million cap, and place MNIT in charge of holding and disbursing funds. It also creates governance structures, including an interagency group with county representation and a legislative working group, and includes a $15 million fund for the Office of the Inspector General’s technology needs. Several members spoke in strong support, emphasizing that modernization would improve efficiency, help counties serve residents better, and strengthen fraud detection and data sharing. Representatives from Winona, Washington, Olmsted, Stearns, Hennepin, and others cited local experiences with hacked county systems, obsolete software, and the difficulty of recruiting workers to outdated systems. One member urged that the effort be made enterprise-wide and suggested adding the Office of Legislative Auditor to oversight. Another noted the bill’s potential to improve identity verification tools and support broader agency collaboration. No amendments were offered. After third reading and debate, the clerk called the roll and the House passed the bill with 134 ayes and 0 nays; the title was agreed to.

Transcript Highlights:

• PED actually asked for a pretty big increase in their budget this year.
• We can try to get that in the budget this year.
• Right now, in the budget recommendation, that's at 40 million.
• I am wondering, because Senate Bill 136 describes the software private keys.
• An approach that is more than just software.

Transcript Highlights:

• You referred to a software.
• If it's within the budget, then I would urge us to try to use the budget for the Department of Corrections
• We're an increase in their budget.
• I know that there's two budgets.
• There's this budget here, and then there is the local county budget.

Summary: The committee first received a report on the executive protection detail, which was filed without questions. Members were then given a long advance list of House and Senate bills ready for consideration, followed by several amendment requests from agencies. The committee adopted amendments for the Auditor of State to increase special deputy expense allowance, the Administrative Office of the Courts for court interpreters and substitute court reporters, and several other items including local sales tax refunds, county property tax redistribution, and local law enforcement funding. It also held one amendment on House Bill 1034 and moved a Northwest Arkansas Community College cash fund increase tied to tornado-related campus repairs. The committee then considered a series of member amendments and appropriation items, including increases for the Public Defender Commission and deputy prosecuting attorneys to cover higher bar license fees, and a $12 million federal appropriation-only item. A lengthy discussion followed on a proposal from Senator Wallace and Representative Tosh to fund a pilot program for prison cell-phone detection/jamming technology at two correctional facilities. Sponsors and Department of Corrections officials said the system would target illegal contraband phones, would be procured through an RFP, and would be a two-year pilot; members raised questions about legality, cost, scope, data, and whether the department should use existing budget authority. The committee ultimately advanced the item by motion. The committee also took up an amendment from Senator Caldwell for the University of Arkansas Division of Agriculture, seeking a $4 million appropriation increase. Testimony emphasized that the division’s extension offices and research functions are underfunded, that salaries are not competitive, and that the request would help with staffing and flexibility; other members questioned why the division needed more appropriation authority when it already had room under current limits and noted that the request exceeded the higher education board’s recommendation. The amendment was adopted after extended debate. Finally, the committee began acting on governor’s letters, adopting amendments for a $150 million increase to the homestead property tax credit, a $23,000 reallocation for the Insurance Department’s conference costs, $100,000 for property appraisal review work, $1.5 million for career and technical education professional development, $300,000 for DFA regulatory federal spending, $5 million for Inspector General fraud investigations, a consolidation of appraiser/abstractor/home inspector appropriations, deletion of a completed Fort Chaffee readiness center appropriation, and a revised reappropriation for corrections capital projects that would add special language restricting use of the $73.7 million prison-expansion reappropriation. The committee also heard a summary of a supplemental appropriations package involving fund transfers for pregnancy resource centers, senior centers, assistance grants, used tires, and UAMS pregnancy/stroke programs.

Transcript Highlights:

• Half of that is software integrator service costs. That's not the software.
• So, software, it seems like nowadays.
• from and continue on with software from and continue on with software maintenance<00:16:01.360><
• Right now we have experts in software.
• vendors and the different software vendors and the different software vendors<00:30:09.120> and

Keywords: 958, all

Summary: Personnel Cabinet and Kentucky Employees Health Plan officials presented a request to replace the Kentucky Human Resources Information System (CHRIS), the state’s HR/payroll ERP system procured in 2007. They said the system supports core HR and payroll for about 48,000 state employees, 24 sheriff and county clerk offices, and the Kentucky Employees Health Plan, which covers more than 300,000 lives. Officials emphasized that SAP has said the system will be end-of-life and out of support by 2030, which would eliminate security updates, vendor maintenance, and tax-compliance support. They argued that replacement is necessary to protect sensitive personnel and health data, maintain payroll accuracy, and avoid major operational and cybersecurity risks. Officials described the project as a true replacement, not just an upgrade, and said the proposed $151 million request covers a five- to six-year implementation, stabilization, and ongoing maintenance period. They broke down the estimate as including roughly $54 million for software licensing and hosting, about $76.5 million for systems integrator/professional services, and additional amounts for independent verification and validation, dependent verification for the health plan, FSA administration, contingency staffing, and hardware-related needs. They said the cost increase from prior estimates was mainly due to inflation and updated requirements. They also noted that payments would be tied to deliverables and checkpoints, with third-party IV&V oversight, and that the cabinet expects to continue normal quarterly IT reporting to LRC while also providing at least monthly project updates because of the 2030 deadline. Committee members asked about the total cost of ownership, recurring operating costs, the size of the integrator contract, how vendor costs were estimated, and how progress would be tracked. Officials said they used market research, peer-state comparisons, vendor discussions, and independent reviews, including input from AON and a third-party QA resource. They explained that the integrator would handle requirements mapping, system design, configuration, training, change management, and implementation support across the Personnel Cabinet, KHP, and other stakeholders. No vote or formal action was taken during the discussion; the meeting consisted of testimony, questions, and answers on the funding request and implementation plan.

Transcript Highlights:

• proviso in the Operating Budget Bill, Senate Bill 5167.
• In Part 4 of that bill, and a budget proviso in the Operating Budget Bill, Senate Bill 5167.
• And so when I refer to MEF, tax software, CPAs, those types of folks.
• The school budget process is a four- to six-month-long process.
• This tax will put them out of budget, so they will need to cut advertising instead.

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.

Transcript Highlights:

• units, budget analysis, contract reviews, even legislative reviews.
• This is software. It's software and opportunities that has been procured over time.
• This is software. It's software and opportunities that has been procured over time.
• And the reality is, again, this is software. This is an advancement of software.
• And so budget units being able to share that is important.

Bills: HB2452, HB2592

Keywords: comprehensive plans, county governance, data centers, zoning, state regulations, land use, energy production, infrastructure, environmental impact, artificial intelligence, government regulation, innovation, procurement, administrative burdens, 1182, all

Transcript Highlights:

• The Information Technology Budget and Policy Subcommittee will now come to order.
• I know we had a chance last week to submit our proposed budget recommendations to the House Budget Committee
• And I think that's the biggest issue I have, especially when it comes to software and software integration
• You have authority, you have budget, and you have accountability.
• You have authority, you have budget, and you have accountability.

Summary: The committee first took up House Bill 1183, by Rep. G. Lombardo, as amended by a strike-all. The bill would provide liability protection for local governments and private-sector entities that substantially comply with certain cybersecurity practices, including multi-factor authentication, disaster recovery plans, and related policies and procedures. Rep. Lombardo said the measure is intended to create incentives for better cybersecurity and to limit class-action exposure after incidents, while still allowing suits where negligence can be shown. Supporters included TechNet, the Florida Justice Reform Institute, the Florida League of Cities, Associated Industries of Florida, the Florida Association of Counties, and Dr. Edward Long of the James Madison Institute; Vice Chair Steele, Rep. Blanco, and Rep. McFarland also spoke in favor. Ranking Member Bracy Davis opposed the bill, saying she was not comfortable granting liability protections to entities that may have contributed to breaches and questioning whether substantial compliance would be self-attested. The amendment was adopted, and the bill was reported favorably by a 14-2 vote. After the vote, the committee shifted into an extended discussion about Florida’s state IT governance structure, procurement, and project management. Members criticized the current federated model as fragmented and lacking clear accountability, with repeated references to long-running problems such as cost overruns, weak vendor oversight, workforce shortages, and the troubled I-Connect system. Several members argued that the state needs a single accountable leader or stronger enterprise authority over agency technology decisions. Ranking Member Bracy Davis raised concerns about the impact of broken systems on vulnerable populations and asked about the role of advisory councils. Rep. G. Lombardo, Vice Chair Steele, Rep. Miller, and Rep. Groh all emphasized the need for centralized leadership, better alignment of authority and budget, and more disciplined procurement and integration practices. A public witness, Victoria Zep of Team 180, testified in support of a more enterprise-wide approach and said the private sector also wants more organization and transparency. She criticized short procurement timelines, limited competition, and poorly written scopes, and urged the state to post procurements more openly and seek broader vendor input. She also discussed the need to respect agency-specific federal requirements while still improving statewide coordination. The chair closed by asking members to bring forward ideas for immediate and long-term reforms, including review of Senate Bill 7026, and the meeting adjourned without further business.

Transcript Highlights:

• mentioned but the governor's budget mentioned but the governor's budget recommendations<00:07:34.960
• for three FTE and software for three FTE and software advancements<00:20:57.400> there<00
• I've had to spend money to buy software.
• You don't have to have new software to figure that out.
• You don't have to have new software to figure that out.

Keywords: 1183, house

Transcript Highlights:

• 2025 Budget Act.
• This is my third year on budget and my last budget hearing.
• budget cycles.
• budget cycles.
• and software.

Summary: The Assembly Budget Committee met to consider the 2026 Budget Act, which leaders said was the negotiated compromise with the Senate and was expected to move to the floor that evening. Opening remarks emphasized that the plan balances the budget over two years, reduces the structural deficit, and builds reserves, while also protecting core services in the face of federal cuts. Jason Sisney outlined the legislative budget framework and the likely floor bills, including AB 109, SB 110, SB 122, and SB 125. Department of Finance representative Eric Khali said the administration appreciated the two-year balanced approach and supported the modification in SB 122, while noting the package uses additional revenues and new spending to soften or reject some proposed cuts. Most of the discussion focused on major spending areas. Members and subcommittee chairs highlighted protections and additions for health care and human services, including rejecting the proposed Medi-Cal asset limit change, delaying premium increases, restoring clinic and dental funding, supporting distressed hospitals and county indigent care, and expanding county eligibility staffing to handle H.R. 1-related workload. Education members described record or expanded support for TK-12 schools, child care, special education, community colleges, teacher recruitment, and higher education, including a change to extend Cal Grant eligibility to age 30 for some community college students. Housing and homelessness funding was increased for HAP, multifamily housing, and the low-income housing tax credit, while public safety members pointed to investments in victims’ services, restorative justice, and prison closure savings. Several members also raised concerns or priorities tied to the budget deal. Some praised the package as a moral document that protects vulnerable Californians, immigrant communities, LGBTQ residents, seniors, and people with disabilities. Others noted unresolved issues, including the MCO tax’s impact on districts, the need for more support for local journalism, arts, biotech R&D incentives, transit and GGRF-related concerns, and the need for continued work on Prop. 98 and long-term fiscal resilience. The vice chair cautioned that despite the current progress, the state remains vulnerable to revenue volatility and warned that the budget should build more resilience against a possible downturn. No formal vote was taken in the portion provided, but the committee was preparing the budget package for floor action and final negotiations.