IE11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

State Budget Details IT, Innovation Work

The document, which took effect July 1, supports IT initiatives in areas including modernization, stabilization and security.

California Capitol
Shutterstock/Brandon Bourdages
This story is limited to Industry Insider — California members.
This story is limited to Industry Insider — California members. Login below to read this story or learn about membership.
One of the state’s chief supporters of information technology will continue work on a slate of major initiatives this fiscal year as a result of the newly enacted state budget.

The state’s technology department is one of the destinations for a portion of Gov. Gavin Newsom’s new $3.8 billion 2022-2023 Fiscal Year state budget.

Detail on California’s enacted FY 2022-2023 state budget reveals lawmakers and Newsom approved just more than $572 million, with rounding, for the California Department of Technology (CDT), the state’s technology agency. That’s up more than 12 percent from the $508.4 million Newsom proposed for CDT in January with the release of his initial budget. For comparison, in FY 2021-2022, CDT’s approved budget has settled at more than $3.8 billion with rounding – which includes $3.25 billion in federal monies from the Coronavirus Fiscal Recovery Fund of 2021. Among the takeaways:

  • There’s a significant investment in “technology modernization and stabilization funding” for critical systems with $55.7 million from the General Fund and four positions this fiscal year as well as $711,000 ongoing. It’s for “short-term IT projects” that are approved via technology modernization funding or recommended by CDT’s Stabilization Services Assessment team. The funding, the budget notes, is “through new technology stabilization funding to fund preventative remediation efforts of identified IT systems at risk of failure.”
  • Pushing out broadband statewide remains a key initiative. The budget has $300 million from the General Fund in the 2023-2024 Fiscal Year; and $250 million from the General Fund in FY 2024-2025 for “broadband infrastructure.” The money is to “manage cost pressures associated with the completion of the Middle-Mile Broadband Initiative.”
  • IT work continues apace and there’s nearly $3.5 million to support a “workload increase” at the Office of Statewide Project Delivery (OSPD). That comes with five positions, to bolster OSPD’s support of IT and innovation initiatives.
  • Oversight is a focus, with $2.8 million from the General Fund and 11 positions this fiscal year and in FY 2023-2024, and $2.1 million ongoing for “Oversight, Compliance and Advisory Services Program expansion of service.” That’s aimed at expanding CDT’s “information security oversight capacity in compliance with a January 2022 California State Auditor’s report.” (Find Industry Insider — California’s coverage here.)
  • Security continues to be key; there’s $1.7 million from the General Fund in FY 2022-2023 and ongoing for a “Security Operations Center infrastructure cost expansion.” That will support “cloud hosting costs associated with the Security Operations Center.”
  • And as learned in January, there’s $44.1 million from the General Fund this fiscal year for “internal operating costs currently funded through the Technology Services Revolving Fund” (TSRF). And there’s $10.5 million also from the General Fund this fiscal year, to “mitigate revenue losses for the Office of Technology Services,” also now paid for via the TSRF. In January, the state Department of Finance told Industry Insider the TSRF reimburses CDT for products or services it provides departments, based on set rates – “necessary costs to fund CDT services that cannot be directly billed to departments.” Those reimbursements are expected to decline as state departments including Motor Vehicles and Child Support Services no longer utilize the CDT services they once did.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.