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Board hears progress update on STARS IT modernization, project estimated at $15.66 million
Summary
Board staff said the State Assessed Properties Divisionis moving forward with a cloud-based IT modernization named STARS, estimating total costs at about $15.66 million (including roughly $11 million in staff costs), with an RFP posted June 5, bids due Aug. 10 and a vendor start targeted for Nov. 30, 2026.
Katherine Taylor, chief of board proceedings, told the State Board of Equalization on June 24 that the agency has advanced a multi-year effort to replace its aging mainframe assessment system with a cloud-based platform called STARS. "We needed a new solution, not a patchwork of workarounds," Taylor said during the IT modernization update.
The board heard that the project emerged from a January 2023 request for information and subsequent alternatives analysis. Taylor said the proposal centers on nine solution pillars including an e-file portal, centralized data storage, tax computation rules, case management, audit and appraisal efficiencies, and dashboards to reduce manual processes and move the division toward going paperless.
Taylor gave an estimated total project cost of $15.66 million and said a budget change proposal for $6.3 million was submitted and included in the governor's 2026-27 budget. She noted the Department of Technology requires projects to include allocated staff costs in estimates; board staff explained roughly $11 million of the total reflects those human-resource allocations rather than new hiring. "A majority of the costabout $11 millionis just the cost of our own staff that we currently already pay for," a board member restated while discussing the budget math.
Procurement and schedule details provided to the board: the STARS request for proposal was posted on the state's procurement portal on June 5, 2026; prospective vendors will submit bids by Aug. 10, 2026; evaluation and contract award are expected on or near Nov. 20, 2026; and the vendor's planned start date is Nov. 30, 2026. Taylor said the contract is expected to be brought to the board for approval on the November agenda.
Board members asked about operational impact and whether the work would free staff time for audits and special studies. Taylor said one goal is to reduce manual data entry so staff can conduct more appraisals and audits. The presentation also explained how the California Department of Technology and the Department of Finance have been engaged through the PAL (Project Approval Life-cycle) process and that the project's stage-two approval has already been secured.
The board received the update for information; no formal action was taken on the project at the meeting. The agency said it will return with further procurement progress and implementation milestones as the selection process moves forward.
