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Senate Institutions hears plan to restructure Agency of Digital Services budgeting
Summary
Commissioner Adam Gresham told the Senate Institutions Committee the state will shift many IT project spending authorities back to sponsoring agencies, create discrete enterprise funds to increase transparency, and add a modest direct general-fund appropriation for services that cannot be billed to client agencies.
The Senate Institutions Committee on Feb. 17 heard from Commissioner Adam Gresham of the Department of Finance and Management about a restructuring of how the Agency of Digital Services (ADS) is budgeted and how the state recovers IT costs. Gresham said the changes aim to align budgeting with how ADS delivers services and to address a deteriorated internal service fund balance.
Gresham told the committee the communications and information technology (CIT) internal service fund had ‘‘about a $25,000,000 debt’’ in 2025 and that the administration reworked the budget to reduce the risk of further deterioration. "The secretary of digital services...said the way we carry out our vision doesn't really match how we budget for our mission," he said, describing the effort as both a structural and accounting correction.
The presentation outlined four cost-recovery methods ADS has used: allocation (a per-user charge that Gresham said was about $13,000,000 in fiscal 26), demand-based billing through service-level agreements (SLA),…
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