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State IT agency seeks $96.5 million in FY27 to split core and demand services
Summary
The Agency of Digital Services asked the Appropriations Committee for about $96.5 million in FY27, proposing two appropriations to separate foundational "core enterprise" services from demand-driven professional services and new internal service funds to improve cost transparency and predictability.
The Agency of Digital Services (ADS) told the Appropriations Committee it is seeking roughly $96.5 million for fiscal 2027, split into two appropriations that would separate core enterprise IT from agency-specific demand services. "This gives us a chance to use general funds to remove that locker and allow working together in that data space," ADS leadership said, describing new funding flows meant to reduce cross-agency friction.
ADS said it has identified four guiding principles for its restructuring: user experience, standards, predictability and reduced complexity. The agency reported roughly $50 million in validated savings since its creation and said it added about $5.5 million in savings in the past year by consolidating licenses and retiring legacy systems.
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