Franchise Tax Board seeks final EDR2 funding and mainframe refresh as modernization winds down

Mar 19, 2026

FTB requested the last tranche of funding for its Enterprise Data to Revenue Phase 2 project and $13.1 million to replace end‑of‑market mainframe servers, arguing the investments support compliance, increased audits and continuity for systems that process most state revenue.

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Franchise Tax Board officials told the Senate subcommittee they are in the warranty and transition phase of the Enterprise Data to Revenue Phase 2 (EDR2) project and requested final funding to move the program into steady state. Roger Lackey, FTB chief financial officer, said EDR2 has modernized case management and compliance workloads and that the project is about 99% complete; FTB requested roughly $59.9 million in 2026‑27 (with lower follow‑on amounts in subsequent years) to support operational transition and solution partner payments.

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