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State IT overhaul: F&A proposes $50M for AI, $70M for ERP modernization and governance
Summary
Finance & Administration and Strategic Technology Solutions outlined a modernization push that includes $50 million for state AI enablement, $70 million for ERP (Edison) modernization and related data center moves. Officials emphasized governance, pilot use cases and a phased procurement with platform selection expected by year’s end.
Finance & Administration leaders told the committee the state will pursue a multiyear technology modernization program centered on enterprise resource planning and enterprise AI governance.
Kristen Darby, chief information officer for Strategic Technology Solutions, described STS’s FY27 request as "a modernization year for STS, not an expansion year," explaining a $149.2 million proposal concentrated in three areas: AI enablement ($50M), ERP modernization or Edison replacement ($70M) and data center relocation ($20M). STS said recurring increases would be limited and focused on cloud consumption and cybersecurity.
Committee members asked how the AI dollars would be applied. STS leaders said the funding is intended first to build governance, auditability and secure infrastructure that can evaluate and enable best‑of‑breed AI tools across state agencies. Darby and Deputy Commissioner Eugene Neubert emphasized two channels: an innovation lab to build state tools and a governance framework to vet third‑party AI components before agencies adopt them.
Officials described current pilots, including contact center deployments showing productivity improvements, and said the Edison ERP procurement is entering a discovery-to‑RFP phase, with platform selection expected by the end of calendar 2026. The committee requested additional detail on use cases, timelines and procurement steps before final appropriation.
