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State IT asks for $8.3M for cloud migration, $1M for AI hub and $1.2M for procurement modernization
Summary
ITS told the subcommittee it seeks a one‑time $8.3 million migration fund for a cloud center of excellence, a $1 million innovation fund seed for AI use‑case development, $1.2 million for procurement modernization, and legislative authority to pursue shared services and strengthen cybersecurity.
Dr. Craig Ojron, executive director of the state ITS, told the budget panel the agency has five strategic initiatives for the coming year: finish a Cloud Center of Excellence, expand artificial‑intelligence use through an innovation fund, modernize procurement, promote shared services across agencies, and mature statewide cybersecurity.
On cloud migration, Dr. Ojron said an initial engagement estimated a one‑time $8.3 million cost to migrate agency workloads and optimize them for public‑cloud providers. He added that public cloud providers have discussed matching that investment — “I’ve been told that there’s gonna be a $25,000,000 match,” he said — which, if realized, would substantially leverage state dollars. Dr. Ojron asked the committee to consider placing migration funds in ITS rather than dividing small amounts across dozens of agencies to ensure a uniform, optimized approach.
On artificial intelligence, ITS described an AI innovation hub and asked for $1,000,000 to seed use‑case work. Dr. Ojron said ITS has developed acceptable‑use and transparency principles for agency AI use, and that the state has active use cases from agencies and universities ready for development.
ITS also requested $1.2 million to improve internal procurement systems and cited a plan to build an AI procurement assistant (a working name offered in testimony was “Madam Procurey”) to help agencies navigate procurements faster and more consistently.
Lawmakers asked whether the cloud costs would be one‑time or recurring; ITS answered the $8.3 million is intended as a one‑time migration expense and agencies would transition to operational, usage‑based cloud charges thereafter. Representatives also discussed opportunities to use shared services and to leverage the same data‑matching or cloud investments across agencies to reduce duplicative spending.
Committee members requested follow‑up on implementation metrics, provider match commitments, and plans for workforce training and procurement changes before considering appropriations.
