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House committee hears plan to restructure Agency of Digital Services budget to shore up CIT fund
Summary
Finance commissioner told the House Energy and Digital Infrastructure committee that the Agency of Digital Services' pooled internal-service (CIT) fund showed multi-year deficits and the FY27 budget would break the pool into separate funds, add a roughly $9 million direct appropriation for nonrecoverable statewide functions and shift many project spending authorities back to sponsoring agencies to improve transparency and control.
The House Energy and Digital Infrastructure committee heard testimony from Adam Gresham, commissioner of Finance and Management, on a proposed restructuring of the Agency of Digital Services’ (ADS) FY27 budget intended to address a growing deficit in ADS’ internal-service “CIT” fund and to improve financial transparency.
Gresham told members the CIT fund moved from a small positive balance about $1,000,000 to a series of deficits—about $5,000,000, then $13,000,000—and that the most recent annual financial report for fiscal 2025 showed a roughly $25,000,000 negative balance. He said the agency aggregates four recovery streams—allocation (a statewide overhead allocation), service-level agreements (SLA), timesheet (embedded staff billing) and bespoke (project) spending—into a single pooled CIT fund that has become difficult to track from a control perspective.
“The problem was the pool got too big,” Gresham said, arguing that blending those recovery streams made it hard to isolate where unrecovered costs were originating…
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