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Controller urges lawmakers to fund LUMA transition as Business Information Infrastructure fund sunsets
Summary
The state controller told the Joint Finance‑Appropriations Committee LUMA sustainment funding held in the Business Information Infrastructure Fund expires June 30; the controller requested bringing LUMA costs onto the controller's appropriation and adding staff to maintain payroll, financial reporting and ongoing LUMA development.
State Controller Brandon Wolf told the Joint Finance‑Appropriations Committee the state's enterprise resource planning project (LUMA) has moved into a sustainment phase and that the Business Information Infrastructure Fund (BIF), which paid much of LUMA's implementation costs, will expire June 30. The controller asked the committee to approve a package to put LUMA sustainment costs onto the controller's appropriation for FY2026.
Frances Lippett summarized the controller's request as primarily aimed at funding staff and infrastructure previously paid from the BIF. Lippett told members the controller requested $15.2 million in total for FY2026 to bring LUMA costs on budget; elements cited in the presentation included funding for seven additional full‑time positions and $2,159,900 in personnel costs, $800,000 for LUMA infrastructure and overhead in the computer service center, two financial specialists to provide shared‑services financial processing for agencies, and a communications manager. Lippett said the general‑fund portion of the request to bring LUMA on budget totaled $9,856,000, and the controller also requested $5,500,000 in dedicated fund appropriation for the computer service center to be funded from agency charges.
Controller Wolf said the BIF was created to accumulate agency transfers and pay for implementation; with the fund ending, the controller's office must show the general‑fund cost of continuing the project. He told the committee there are currently about 47 people working on LUMA and that without the requested funding "we would almost cut the LUMA team in half," creating serious risk to payroll and payment processing. He described LUMA as "functioning" but said the agency must continue development, training and support for agencies to stabilize reporting and operations.
Lawmakers raised concerns about delayed financial reporting and audit timelines. Representative Orrin and others asked whether the requested positions would help agencies finish their financial close and federal audit work. Wolf acknowledged the state is behind on the annual financial close — by about eight weeks at the time of the hearing — and said the additional staff and continued LUMA work are intended to shorten that lag and support audit completion; he told the committee other states that started similar ERP projects have experienced longer implementation timelines.
Members also asked for lessons learned. Wolf and his staff said they would share implementation lessons — including procurement, testing, change management and training — with the Legislature and other agencies.
Outlook: The controller asked the committee to appropriate ongoing funding for LUMA sustainment and to approve a mix of general‑fund and dedicated‑fund authority; the committee asked for follow‑up detail on the BIF sunset and the precise staffing that will remain necessary as LUMA support stabilizes.
