Tech industry backs state technology modernization fund to pay for agency IT upgrades

Dan Wolf, director of state programs at the Alliance for Digital Innovation (ADI), asked the joint committee to report Senate Bill 31 favorably; the bill would create a Massachusetts Innovation Fund modeled on the federal Technology Modernization Fund to provide repayable up‑front capital for state agency IT modernization projects.

ADI said the fund would address persistent obstacles such as inflexible appropriations and fragmented funding streams that delay modernization and sustain legacy systems with weak security. Wolf said the proposed fund would offer short‑term loans repayable over seven years and be overseen by an oversight board with executive and legislative members and implemented in partnership with MassDevelopment. "By providing access to centralized repayable financing, the fund enables agencies to make strategic multiyear investments that replace obsolete legacy systems, reduce operational risk, bolster cybersecurity posture, and improve service delivery," Wolf said, citing the federal TMF's track record of investments across federal agencies.

The committee questioned Wolf about the initial funding source and how repayment would interact with agency budgets. Wolf said ADI was working on identifying funding sources and expected to provide more detail in future appearances. He also told lawmakers that the fund would require careful governance and prioritization of projects to ensure fiscal responsibility.

The hearing captured industry support for centralized repayable financing for IT modernization and underscored unresolved budget and governance questions the committee would need to address if it advances SB31.