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Department of Industrial Relations seeks $19.1 million for public works IT phase; committee questions timing
Summary
The Department of Industrial Relations requested $19.1 million in the May revision for phase 2 of a multi-year public works IT modernization; officials said CDT approval delayed inclusion in the January budget and procurement had to be re-run after no responsive bids.
The Department of Industrial Relations asked the Assembly Subcommittee 5 to approve $19.1 million in the May revision to fund a second year of public works information technology system enhancements, and lawmakers questioned why the request was not included in January and whether the project has stable procurement and cost projections.
Josh Iverson, chief financial officer at the Department of Industrial Relations, described the request as funding for phase 2 of a project that began in fiscal year 2020—1 and noted the department expects project completion in October 2026 if funded as proposed. The department said the California Department of Technology (CDT) special project report required for January's proposed budget was still under review then and only recently approved, prompting the administration to include the item in the May revision.
Committee members, including Assemblymember Ward and others, expressed concern about repeated mid-year technology budget additions and asked why the procurement could not be anticipated earlier. Ben Bonte, the department's chief information officer, said phase 1 completed in June 2024 and the first procurement for a system integrator did not result in a successful award; the department must reprocure and now plans to award a contract in fall 2025 and finish the project in 2026. Iverson said the larger appropriation primarily allocates funds for the system integrator's work for fiscal year 2025—26 rather than representing a cost overrun.
Members raised the broader issue of repeated, multiyear state IT projects increasing and urged a systemic review of state technology spending; an LAO representative said the office had no specific comment on this item but stands ready to help.
Ending: The subcommittee heard explanations about CDT approval timing and procurement delays, and members flagged broader concerns about cumulative state IT spending and the need for oversight; no formal action occurred.
