DSS outlines $40.2M IT transfer to DAS, lawmakers raise concerns about operational control
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Summary
The Department of Social Services told the Appropriations subcommittee it plans to transfer $40.2 million and 65 IT positions to the state Department of Administrative Services (DAS) as part of an IT consolidation. Lawmakers pressed DSS officials on who would control day‑to‑day operations and on federal cost‑allocation risks.
The Department of Social Services told the Appropriations Committee it is proposing a transfer of $40,200,000 and 65 positions to the Department of Administrative Services for consolidation of information‑technology functions.
DSS staff said the transfer would fund maintaining and operating IT systems and equipment and move several IT positions and related fringe costs to DAS to centralize technical staff and enterprise licensing.
Agency witnesses acknowledged benefits from scale — for example, lower per‑user licensing costs for large enterprise products — but multiple legislators expressed concern that consolidation could slow day‑to‑day problem resolution for DSS front‑line operations. One lawmaker asked whether the shift meant that “every penny that goes out goes through BITS,” referring to the state's Bureau of Information Technology Services; DSS staff replied that many IT purchases and staffing costs would route through BITS and that some business systems staff would remain at DSS.
Lawmakers pressed the department about federal reimbursement for IT positions. DSS said reimbursement rates vary by project and cost allocation; some staff are coded to projects eligible for higher federal match (for example, 90/10), but a typical reimbursement for some functions is roughly 50/50. DSS staff said they would provide detailed cost‑allocation data by project to the committee.
DSS described a single point of contact at DAS for urgent issues and regular monthly meetings between agency leadership and DAS customer service managers. The department said Michelle Abramson serves as the assigned customer service manager to whom DSS would escalate operational problems.
Committee members said they wanted a clearer organization chart showing which IT staff and functions remain at DSS, which will be consolidated at DAS, and how federal matching and cost allocation will be tracked. DSS committed to producing an organizational chart, job descriptions or dotted‑line relationships with DAS staff, and federal match estimates for those positions to the subcommittee.
There was no vote or formal decision at the hearing; the matter was discussed as part of budget review and follow‑up information was requested.
