Kansas Department of Administration seeks first-year funding for $90–100M ERP modernization; House shifts some enhancements to ARPA

The Kansas Department of Administration asked the Senate Ways and Means Committee on Monday to restore several previously approved budget items and to approve the first-year payment for a multiyear enterprise resource planning (ERP) modernization it estimates will cost $90 million–$100 million.

Department Secretary Adam Proffitt told the committee the department seeks about $26 million in the first year of a three- to five-year modernization and that the effort would replace decades‑old, on‑premise systems used for accounting, payroll, procurement and budgeting. “Our system today is not broken today,” Proffitt said, but moving to a single cloud‑based vendor would reduce manual work and increase operational efficiency.

The request follows a staff overview from Legislative Research analyst Steven Wu, who told the committee the legislature approved roughly $216 million for the department for fiscal 2025 — including about $168 million from the state general fund — while the agency’s request for fiscal 2026 totals about $239 million in all funds, including about $168 million SGF.

Why it matters: The ERP supports central functions used across state agencies; the department said modernization would touch budgeting, accounting, HR, payroll and procurement and that the state would bear ongoing operational costs…