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Office of Data & Innovation highlights tech wins; CDT seeks CalTabs replacement with SaaS billing

Subcommittee 4, Senate Budget and Fiscal Review Committee · April 23, 2026
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Summary

ODI highlighted data‑science projects (EBT fraud detection, water outage forecasting) and asked for reimbursement authority; CDT requested revolving fund authority to replace a 20‑year CalTabs billing system with a SaaS solution; LAO raised no objections to either proposal.

The subcommittee received a briefing from the Office of Data & Innovation (ODI) and the Department of Technology (CDT) on digital service initiatives and IT modernization needs.

Jeffrey Marino, ODI director, asked for five positions and $1,250,000 in reimbursement authority to expand digital service delivery teams. Marino described recent projects that detected unauthorized EBT transactions, reducing response times "from months to days," and a data science model to forecast community water system outages for prioritized intervention.

Senators asked how ODI safeguards sensitive data when using vendor AI services; Marino cited the governor's generative AI executive order, updated contract terms that prohibit using state data to train external models, enterprise agreements and coordination with the Department of Technology's security officers.

CDT chief administrative officer Miles Burnett requested $1,000,000 in technology services revolving fund authority to replace CalTabs, a 20‑year‑old, highly customized billing system, with a modern SaaS billing solution to reduce technical debt and improve billing transparency; LAO said an off‑the‑shelf SaaS approach is lower risk and appropriate.