After last year’s failure of the State Controller’s 21st Century project, Governor Brown’s May Revised Budget proposal has some significant technology-related adjustments, according to Tuesday’s summary released by the Department of Finance. If passed, the budget would create the Statewide Project Management Office within the Department of Technology (CalTech) and fund a $2.5 million independent assessment of the 21st Century Project after the state last year cancelled a $90 million contract with vendor SAP.
The creation of a statewide project management office was one of 21 recommendations made last summer by a task force established by State Controller John Chiang and Governor Brown to address concerns raised by the failed project.
The May Revised Budget also includes $208,000 from the General Fund for two positions in fiscal years 2014-15 and $304,000 in 2015-16 to establish a team that “will be responsible for developing the framework for the office which will ultimately consist of experienced project managers who will manage information technology projects across the state,” the budget states.
Last summer, CalTech established a state strike team, headed up by Deputy Director Mary Winkley, to help keep troubled IT projects on track.
Supported by the nonpartisan Legislative Analyst’s Office (LAO), an independent assessment of what went wrong with the 21st Century Project was considered in last year’s budget.
The LAO issued a report in March calling for an independent assessment saying the state has not moved forward over fears that findings could impact a pending lawsuit against the contractor.
The lawsuit could have a financial result anywhere from a $150 million recovery — if the state wins the lawsuit — to a loss of $50 million if the state loses, according to the report. However, the benefit of learning and applying lessons from MyCalPAYS could be much larger to other large-scale IT projects than money recovered from the lawsuit, the LAO found.
By law, the legislature must pass the budget bill by June 15.
