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Agency of Digital Services seeks transition funds to simplify state IT billing and reduce arrears
Summary
Agency of Digital Services leaders told the committee they plan to restructure enterprise IT billing, reduce service-level agreement (SLA) invoicing and create a core enterprise-services charge. ADS asked for a transition allocation to avoid double invoicing during the changeover and described $43 million in timesheet billing pressures in FY25.
Denise Riley, secretary of the Agency of Digital Services (ADS), and ADS finance staff outlined a multi-year plan to change how Vermont state government pays for enterprise IT services, telling the Appropriations Committee that the current mix of allocations, SLAs and timesheet billing creates arrears and opaque invoices for agencies.
Riley described a legacy billing model, partially inherited from the Department of Information and Innovation, that she said is producing “deficit spending in, and invoicing a fiscal year arrears.” ADS proposed a transition approach funded in part by a request the administration submitted to reduce arrears and shift costs into a predictable core enterprise-services allocation.
Why it matters: ADS provides statewide IT infrastructure, cybersecurity, licensing and application support. Committee members said they…
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