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Appropriations members press for oversight on ADS service-level charges and ERP project after staff testimony raised billing and contract concerns
Summary
Committee members reviewed energy/digital infrastructure letters and questioned Agency of Digital Services (ADS) service-level charges, billing practices, and the state ERP project timeline and safeguards; members asked for continued oversight and possible language to add check-ins.
The House Appropriations Committee discussed energy and digital infrastructure letters on Jan. 24 that addressed Agency of Digital Services (ADS) service-level charges appearing in several agency budgets and the broader enterprise resource planning (ERP) project (human capital and financial management system).
Members said ADS acknowledged that billing was hard to budget and that some charges reflected old numbers or post-hoc hourly rate changes. Appropriations members asked for further review so agencies do not encounter unexpected increases in ADS charges in future fiscal years. The committee also noted a language change that extended a notification period from 48 to 72 hours for utility excavators to appear before usage — that item was presented as a straightforward technical fix.
Several members raised concerns about the ERP project’s cost and oversight. Witnesses and staff at prior public hearings had recommended stronger check-ins and milestones for what committee members described as a long-running ERP effort. Members recalled pausing a payment last year and discussed contractual safety valves and checks that should accompany multi-year procurements to avoid open-ended cost exposure.
Committee members said the legislature has established a review group (referred to in the discussion as a check-in body) and that staff consultants raised caveats in their reports. Members asked Appropriations staff and JFO consultants to continue oversight and to provide proposed language for the BAA or other vehicles if necessary to preserve pause points or contractual safeguards.
No final Appropriations votes on ADS billing changes or ERP funding were recorded in the Jan. 24 transcript; members said they will continue the conversation and may add language or pause payments if fiscal or contract reviews identify red flags.
