DAS and OCIO present cost‑savings, cyber push and cash fund review to Appropriations Committee
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Summary
DAS outlined health plan surcharges, vendor negotiations and cash‑fund analyses; OCIO described rate consolidation, a proposed one‑month rate relief, cyber staffing expansion and statewide cybersecurity efforts for K‑12 and counties.
The Department of Administrative Services (DAS) and the Office of the Chief Information Officer (OCIO) presented budget updates to the Appropriations Committee, focusing on health insurance costs, fund sustainability and cybersecurity.
DAS Director Lee Will said the state health plan experienced an 18.5% surcharge in FY26 driven by escalated healthcare costs and that Blue Cross Blue Shield won recent RFPs for the health plan and PBM. He said projected FY27 surcharge needs are lower (estimated 5–7%) and detailed vendor‑negotiated savings (Workday payroll migration, GPS and telecom reductions). DAS also reported a review of over 900 cash funds to assess long‑term sustainability and noted negotiations to reduce leases and other operating costs.
OCIO CIO Matthew McCarville described consolidating rates to reduce customer confusion, backing a one‑month no‑bill program (~$14M) to reduce agency rates, and a plan to expand state cyber capacity. OCIO said it is building apprenticeships and a joint security operations center and emphasized a ‘‘1 Nebraska’’ approach to provide affordable cybersecurity and managed services across K‑12, counties and state agencies. The committee asked for further documentation on cash fund balances, the Epiphany contract reporting and the long‑term plan for IT infrastructure refreshes; DAS and OCIO staff agreed to provide additional details.
