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Agency selling surplus buildings to fund IT upgrades; benefit system rollout planned for summer

Labor, Commerce and Industry · February 19, 2025
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Summary

Stanton said proceeds from selling underused workforce buildings (about $9 million returned) are being directed to a fixed-price modernization of the tax system; the benefit system modernization was scheduled to go live this summer in a multi-state effort with North Carolina and Georgia.

Cheryl Stanton told the committee the department pursued an aggressive surplus-property program and has returned roughly $9 million from building sales to the agency. She said that federal guidance encourages reinvesting such proceeds in program needs and that the agency is using the money to fund a modernized tax system.

On IT modernization, Stanton said the benefit system will be rolled out first and was scheduled to go live in South Carolina in the summer, followed by North Carolina and Georgia. She described the contracts as fixed-price and back-ended — "we pay for the product we get" — and said that approach reduces the need for additional appropriations. Committee members asked about vendor funding and project status; Stanton said payment is tied to delivered, working functionality rather than time-and-materials billing.