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Agency of Digital Services seeks $96.5M in FY27; proposal splits enterprise and demand funding
Summary
The Agency of Digital Services asked the joint House and Senate committees for a FY27 total of $96.5 million, proposing a new split between core enterprise services ($49.2M) and demand/project funding. Lawmakers pressed ADS on transparency, the IT modernization fund, vendor payment processes and a one-year transition for budget reporting.
The Agency of Digital Services (ADS) told a joint House–Senate hearing Feb. 3 that the governor’s recommended FY27 budget for ADS totals $96,500,000 and would be presented as two appropriations rather than one. Kate Slocco, chief financial officer for ADS, said the proposal separates foundational “core enterprise services” from demand-driven project spending, with core enterprise services proposed at $49,200,000.
Why it matters: The change is intended to make foundational IT costs — cybersecurity, network access and centralized licensing — visible and predictable at the enterprise level while moving project- and agency-specific costs into demand or agency budgets. Representative Kathleen James, chair of House Energy and Digital Infrastructure, said the committees need clarity so they can draft a timely recommendation to appropriations.
What ADS proposed and why: Randle Hughes, ADS secretary and state chief information officer, described 13 categories of core enterprise services that cover…
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