A Look at DeSantis’ IT Budget Proposals for the Department of Financial Services

The Florida Department of Financial Services would receive millions of dollars to replace three key systems and support its Florida Planning, Accounting and Ledger Management (PALM) project under Gov. Ron DeSantis’ fiscal year 2025-26 budget recommendations.

FLORIDA PLANNING, ACCOUNTING AND LEDGER MANAGEMENT

The PALM project, spearheaded by DFS, has been a multiyear development to replace the Florida Accounting Information Resource (FLAIR) system with an integrated cloud-based platform.

The new system will allow for real-time collaboration, transparency and a more interconnected government, according to PALM Project Director Jimmy Cox, who previously spoke with Industry Insider — Florida about the project’s completion.

Key takeaways from Cox about PALM include:

• “Most agencies will have to retire or remediate their agency-specific business systems to integrate with Florida PALM. The level of effort for each agency will vary depending on the nature, complexity and number of agency business systems that must be remediated.” 
• “Some agencies may be able to complete remediation of their agency business system(s) with internal staff (state employees), while other agencies may require additional staff augmentation support. Each agency is responsible for their own business systems, including any related procurements for additional resources.”  

As for the governor’s budget recommendations, DeSantis has allocated $3 million for PALM contract contingencies.

Other notable allocations include:

• $36.2 million to replace FLAIR, “a double entry, computer-based, general ledger accounting system,” according to the department’s website
• $6 million to replace the Office of Financial Regulation’s Regulatory Enforcement and Licensing system
• $2.8 million for a customer relationship management replacement
• $991,440 for PALM readiness
• $641,520 for a coverage plan to maintain FLAIR 
• $348,792 for IT contractual price increases

As for implementing these budget recommendations, Gov. DeSantis is looking to appoint a new state chief financial officer to take over for CFO Jimmy Patronis. Patronis recently won the Republican primary for Florida’s 1st Congressional District, setting him up to face Democratic candidate Gay Valimont in the upcoming general election on April 1.

Patronis’ last day as CFO will be March 31.

Stay tuned for continuing Industry Insider — Florida budget coverage in the coming days.