Department of State ends No Inc. contract on voter-roll replacement, says new vendor negotiated and replacement will precede next presidential election

The Department of State told the Appropriations Committee it terminated the previous vendor contract for the state voter-registration system modernization and recovered more than $1 million in taxpayer funds, and that a negotiated replacement contract is now circulating for signatures.

“[T]he Commonwealth terminated the contract and clawed back more than a million dollars of taxpayer money that had been spent on that,” Secretary Al Schmidt said of the No Inc. contract tied to the Schor (sometimes termed “Shore”) system modernization. Committee members noted the vendor’s contract was large (about $10.7 million) and asked for specifics on returned funds; the department responded that reimbursements are ongoing and that state-focused expenditures under the current administration have been returned.

While the modernization contract was re-negotiated, the department said it worked with all 67 counties to replace hardware and improve connectivity ahead of the 2024 election to avoid disruptions. Schmidt said the county-level upgrades and other short-term measures helped counties process heavy volumes of registrations and mail ballots.

On timing for the full replacement system, Schmidt said the administration will not introduce a new statewide voter-management system during a presidential election cycle: “Certainly in advance of the next presidential election, I would never roll out a new system in a presidential election cycle,” he told the committee. The department said the new vendor has submitted a project plan that will contain deliverable dates and that the contract was in the signature phase at the time of the hearing.

Committee members pressed about interoperability and data quality: the department said uniform data entry by counties will be part of the solution and noted that interstate information-sharing services such as ERIC (Electronic Registration Information Center) provide important cross-state matches; Schmidt said states that left ERIC have not replaced its value. Deputy Secretary Jonathan Marks and others urged the General Assembly to consider reforms such as pre-canvassing mail and absentee ballots before Election Day to reduce the late-night uncertainty that can attract mis- and disinformation.

The department also discussed electronic poll books as a county-level tool to reduce check-in lines and make voter records more accessible on election night; officials said counties may adopt poll books using resources available through Act 88 and other grants.

Ending: Department officials asked for legislative patience while the new contract is finalized and for continued cooperation with counties to standardize data entry and adopt practices such as pre-canvassing and electronic poll books to improve election administration.