Idaho facing big future expense to modernize state computer infrastructure

Idaho is facing a very big expense - $102 million - in the coming years to modernize its accounting, financial, payroll, human resources and procurement technology infrastructure, state Controller Brandon Woolf told legislative budget writers this morning.  The process started in 2015 with a study, he noted, for the Idaho Systems Infrastructure Modernization, or ISIM. This year, the state spent $350,000 for a request for information to vendors, which is under way. Next year, Woolf is requesting $390,000 for a system modernization analysis, which will pin down specific system requirements; Gov. Butch Otter included that in his budget proposal. “It’s part of the ongoing due diligence,” Woolf told JFAC.

“Replacing Idaho’s infrastructure accounting and payroll systems is a very large, complex project,” Woolf said. “It requires a multi-step plan and a thorough understanding of our real needs as a state to do it correctly.”

The state’s current system has long been growing obsolete, he said, and is approaching the end of its useful life. “We’re going to do this the right way: By planning,” Woolf said. “IT initiatives fail not because of hardware and software – they fail because of inadequate planning and discipline. This is a big decision for the state of Idaho, and moving forward must be guided by best practices and fiscal prudence.”

Idaho is one of just a few states that hasn’t yet modernized its computer systems infrastructure, Woolf noted. “This is not all bad, because we can be deliberate and find out what works and what doesn’t.” He said he’s personally met with 48 state agency heads about the project and their needs. “They need this, and many needed it yesterday,” he said.

As Idaho works toward the project, he cautioned against approving any state agency requests for IT spending that aren’t “congruent to the overall ISIM effort.” That could lead to duplication, or systems that don’t interface with the new ISIM architecture, he warned.

The $102 million estimate, up from the initial $80 million estimate a few years ago, includes all costs, Woolf said, including a $10 million to $12 million contingency; staffing; and agency interfaces to the new system. That should ensure that agencies don’t “have to come to you and say, ‘I need a million dollars because I need to interface with Brandon and his office,’” Woolf said. “We’re asking on behalf of all state agencies.” Installation of the new system should start the year after next.