Committee members were told the Department of Justice combined its IT functions with Central Services Division, effectively doubling that program’s budget by moving IT fixed costs under one administrative division.

Stephanie Cody, deputy chief of staff and administrator of Central Services, told the subcommittee Central Services now supports all DOJ operations, including HR, payroll, procurement and IT. “Most of that money is passed through money,” Cody said, noting general fund and many state special revenue accounts underlie the program’s authority. Cody outlined the division’s responsibilities for over 800 employees and a department budget she described as “over $200 million.”

Missy McClarnon (identified in the presentation as Missy McClarnon/McClarnon), DOJ chief information officer, reviewed recent IT accomplishments and near-term projects. The department said it helped the Motor Vehicle Division complete the CARS modernization project (targeted to go live March 17, per the presentation), implemented new Palo Alto firewall appliances, consolidated virtual servers into a hyperconverged infrastructure to strengthen disaster recovery, deployed a new ticketing system, and updated multiple department websites to improve ADA compliance.

Budget documents prepared by Legislative Fiscal Division show the central services program request is about $5,200,000 higher than the base budget, with the majority attributed to fixed-cost present-law adjustments after the reorganization. LFD staff said the effect in other divisions is largely a reduction in fixed costs because the central-services column now holds those cost lines; the underlying statewide fixed costs have not disappeared but have been shifted into the central-services program.

Committee members pressed for clarity on whether IT costs were “hidden” by the move and asked whether divisions still budget for life-cycle computer replacements. Cody and Beth Thompson, DOJ budget supervisor, said divisions retain responsibility for budgeting replacement cycles and that the department is moving to a five‑year replacement plan to spread costs rather than replace large numbers of devices at once. Thompson said divisions pay for replacements from their own budgets, with Central Services assisting in purchasing and preparing devices.

Thompson and LFD staff said roughly half of Central Services’ appropriation is general fund and the rest is mostly state special revenue, including the motor vehicle administration account. LFD also noted a one-time $2,000,000 biannual server-replacement authorization in FY2024 that will show more spending in FY2025 as agencies draw down that biannual authority.

Committee members asked for documentation about how fixed costs were reallocated across divisions and more detailed breakout of the $4.9 million increase attributed to IT operating expenses so the subcommittee could track net shifts versus new spending. The department agreed to provide additional detail.