County IT Proposes No Capital Contribution for 2026–27; Reserve Seen as Sufficient but PeopleSoft Replacement Remains Uncertain

At a county budget workshop, county finance and IT staff presented the methodology and proposed billings for the county’s IT cost allocation, recommended zero contribution to the capital replacement reserve for 2026–27, and flagged uncertainty around a future PeopleSoft replacement.

Kathy Funk Baxter, finance director, said the IT reserve “is sitting at a little bit over… $3,900,000,” while staff estimates the cost to replace most major pieces of equipment at about $3,200,000 in today’s dollars. With expected inflation factored in, staff estimated a $3.7 million need; based on those figures, staff recommended no additional capital contribution for the next biennium.

Allocation method and billings

Baxter and IT staff explained the cost allocation splits IT billings 50% by number of devices and 50% by full‑time equivalents (FTE). The figures cited were roughly 653 devices and 583 FTEs. Staff said for 2026 the IT billings to departments are roughly $5 million; that figure reflects a reduction using carryforward savings from under‑spending in prior years.

PeopleSoft and subscription trends

IT staff said a major unknown is how long the county will keep PeopleSoft and what replacement product it will choose. A replacement could be a capital purchase with upfront costs or a subscription model that would be an operating expense. IT staff described an industry trend toward subscription models, which changes how much capital reserve is needed.

Security, software escalations and new items

Staff noted rising software subscription costs (examples cited included the county’s endpoint protection upgrade to CrowdStrike) and planned replacements for intrusion detection and vulnerability management tools. Treasury/assessor software (Laserfiche) and other licenses were cited as contributors to increased software expense for FY26.

IT also began centralizing procurement and cost recovery for panic‑button installations. Staff said dozens of panic buttons have been installed and that the up‑front installation costs will be amortized over 10 years in the IT cost allocation; the annual amortization impact was described as small.

What was decided and next steps

Staff recommended and commissioners accepted a plan to use existing IT reserve funds rather than add to the capital replacement allocation for 2026–27. IT staff will continue work on PeopleSoft replacement planning and present options and cost estimates when available. Departments will receive their allocations in January, as is the current process.

Ending

IT staff will provide more detailed cost estimates on PeopleSoft options and return with updated proposals if the county’s long‑term strategy shifts from capital replacement to subscription models.