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State CIO outlines $149M modernization package, including $50M AI and $70M ERP request
Summary
The state chief information officer told the finance committee STS seeks roughly $149.2M for modernization: a $50M AI investment, a $70M ERP modernization request, and $20M to vacate an aging data center, alongside recurring cybersecurity and cloud costs. Members raised procurement and oversight questions.
Kristen Darby, the state chief information officer, told the Senate Finance, Ways and Means Committee that the state's Strategic Technology Solutions (STS) is requesting approximately $149.2 million across FY26–27 to modernize enterprise systems and shore up cybersecurity.
Darby detailed the package's largest components: "the $50,000,000 AI investment," a $70,000,000 request for ERP (Edison) modernization to replace an aging system that supports roughly 294,000 users across state agencies and local partners, and $20,000,000 to complete a North Data Center vacate project. She described the AI spending as structured to follow the state's AI council framework and to include governance platforms, secure compute environments, and pilot projects. Darby said the ERP request will touch HR, financial transactions and procurement and acknowledged comparables for similar statewide ERP implementations can approach $100,000,000.
Committee members pressed STS on procurement roles and whether the agency participated in vendor selection for the statewide court (AOC) e‑filing project; STS said it contributed to RFP development and cybersecurity specifications but was not on the selection committee, and that the Information Systems Council will review project status in March. Members expressed concern about cost escalation and emphasized stronger legislative oversight for large multiyear IT efforts.
