In a budget change proposal posted May 26, the California State Controller’s Office (SCO) requested $96.9 million and 14 permanent positions to support the project that has been taking shape for the last decade. The BCP also outlines $2.6 million for the 2027-28 budget cycle and ongoing.
The CSPS project, as its name suggests, is an overhaul of the state’s HR and payroll system in partnership with the Department of Human Resources (CalHR), with early discussions and analysis dating back to 2016.
The state selected CGI Technologies as system integrator in March 2025, and is now ready to move into the execution phase, which includes design, development, configuration and implementation. That process is expected to happen between 2026 and 2031 as departments are onboarded. Maintenance and operations will continue through 2032.
“If the project does not provide enough resources, this presents a risk of the state not being able to adhere to the agreed-upon schedule, leading to cost increases and project delays,” the BCP reads.
In addition to the staffing considerations, the BCP offers some insight into the road ahead for the large project, which includes the replacement of the existing system known as the Uniform State Payroll System. That legacy system is made up of “multiple 1970s-era legacy systems.”
The existing and future payroll system will have to accommodate about 300,000 state employees across more than 165 departments, boards and commissions. According to a winter 2025 newsletter published by the SCO, the new system will have six primary capabilities that include:
- Personnel Administration
- Benefits Administration
- Time Management
- Payroll
- Position Control Administration
- Travel Advance and Expense Management
