Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Edd Next topic
No spam. Unsubscribe anytime.
May Revision technical fix reappropriates UI/DI funds for EDD Next; LAO urges more legislative oversight as ICMS integration begins
Summary
The May Revision includes a technical reappropriation so remaining Unemployment Compensation Disability Fund dollars can be used through June 30, 2026 for EDD Next, including the upcoming ICMS integration phase. Project total to date stands at roughly $660 million with requests that could push total past $700 million.
Employment Development Department officials told Assembly Subcommittee 5 that the May Revision contains reappropriation language to make funds in the Unemployment Compensation Disability Fund available through June 30, 2026 to support EDD Next, the department's multiyear modernization of benefit systems.
Caleb Horrell, EDD chief financial officer, said the technical adjustment aligns encumbrance availability for the UI/DI fund portion of the project with the general fund appropriations that support EDD Next. Horrell said funds are critical for the Integrated Claims Management System (ICMS) contract that EDD expects to award in the coming fiscal year.
Chaz Alamo of the Legislative Analyst's Office said the LAO has no issue with the technical correction but urged the subcommittee to consider additional oversight for EDD Next as the project begins its most expensive phase. The LAO suggested eliminating a two-year encumbrance window in future budget language to tighten fiscal oversight and recommended more frequent legislative review while the ICMS integration proceeds.
EDD officials summarized EDD Next as a top-to-bottom modernization that began in 2022' 23, with $660 million appropriated to date. With administration requests for an additional $124 million in 2025' 26, the department said the total program cost could exceed $700 million if approved. Department officials said many smaller improvements have already been implemented and the ICMS phase is the most complex and costly element.
Ending: Committee members asked for additional briefings and data on fund balances, encumbrance windows, and the project's oversight mechanisms as EDD moves into ICMS integration. No action was taken at the hearing.
