IMS proposes governance overhaul, AI policy and $200K innovation fund amid $1.5M net cut

IMS staff told the council they propose a FY27 budget of roughly $41.55 million, about $1.5 million less than last year, achieved mainly through cuts to consultant contracts and software consolidation. An IMS presenter emphasized that consultant reductions account for the bulk of the savings and warned that reducing midyear contracting flexibility could limit the department—s agility.

The department framed three priorities: revamping technology governance, improving customer focus (including further work on the Shape SLC engagement platform and the My SLC app) and developing an AI policy and guardrails. "AI is both an opportunity, but it's also a lot of risk associated with it," the IMS presenter said, noting a drafted AI policy and privacy work by a newly hired privacy officer. The presentation also proposed a one-time $200,000 internal innovation fund to let frontline staff pilot process or technology improvements; council members urged care to avoid duplication and to focus on customer outcomes.

IMS discussed operational tradeoffs, including extending laptop replacement cycles from 3 to 4 years to save money while acknowledging cybersecurity-driven midyear replacements may still be necessary. Staff said they had laid down roughly "about 23 miles of optical fiber" to improve internal connectivity and are evaluating opportunities for in-house AI tooling versus vendor costs. Council members supported stronger governance and asked for follow-up details on Shape SLC, privacy impact assessments and how the innovation fund would be administered. No formal decisions were made at the work session; staff were asked to return with more detailed policy and implementation plans.