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California Procurement Updates

Revised technology budget highlights in California - May 2022

Governor’s May Revision Budget Proposals re: Information Technology Projects

May 2022


Below, please find several information technology projects proposed for funding as part of Governor Newson’s May Revision to the state budget.




The May Revision includes $6 million one-time General Fund to enhance CDCR’s data collection and evaluation capabilities regarding the outcomes of formerly incarcerated individuals.




$19 million one-time General Fund for the California Office of Emergency Services (CalOES) to implement projects replacing manual processes and legacy systems such as Grants Management, Interagency Recovery, and Human Resources Tracking. This builds upon current modernization efforts and existing technologies to enhance CalOES’s ability to respond to increasingly complex disasters more efficiently. It also includes staff resources to strengthen the department’s Information Security Program.




$4.3 million one-time Special Funds for the Department of Consumer Affairs to continue business modernization efforts for five more boards and bureaus. The Business Modernization Cohort 2 is moving into project development activities and will begin implementing their selected software consistent with the Department’s overall Business Modernization Plan. This will bring additional online services for professional licensing applicants such as application submission, tracking and electronic payments via an online portal.




$108 million one-time funding ($57.6 million General Fund) for the Department of Social Services to continue design, development, and implementation activities for the Child Welfare Services—California Automated Response and Engagement System (CARES) project. Lessons learned from proof of concept activities completed in 2021-22 informed the next iteration of development work, CARES Version 1 and Version 2. The project is replacing a legacy system with a modern technology application that aids child welfare stakeholders in assuring the safety and well-being of children at risk of abuse and neglect.




EDDNext - Long-term Modernization


The May Revision includes $136 million ($68 million General Fund) in one-time resources for EDDNext, a five-year plan to modernize EDD. This includes efforts on EDD’s benefit systems, call center improvements, simplifying forms and notices, including user testing and engagement, developing data analysis tools to continue curbing fraudulent benefit claims, and upgrading department training and tools to increase the pace of application processing.  The first-year investment includes $64.7 million to upgrade and replace parts of EDD’s benefit services systems to provide improved customer service delivery, as well as to enhance overall program adaptability. Some immediate improvements include call center redesign, online portal enhancements to improve the online experience for claimants and employers, and expanded fraud data analytics. This first-year investment will also include design and planning of the future system, as well as efforts to improve claim forms usability. These resources will be critical to the long-term success of EDD.


EDD ID Theft and Fraud


During the peak of the pandemic, EDD implemented anti-fraud vendor services, including front-end technology to block foreign and suspicious Internet Protocol addresses, improvements to applicant identity verification, and services to screen and validate claim integrity. While the Governor’s Budget included $35.2 million to continue these vendor service contracts through 2024-25, additional efforts are necessary to increase awareness of identity theft and take action to identify and prosecute individuals found to have fraudulently claimed benefits.


The May Revision includes $23.6 million ($10.9 million General Fund) in 2022-23,

$12 million ($5.1 million General Fund) in 2023-24, and $9 million ($3.5 million General

Fund) in 2024-25 to support ongoing EDD fraud investigation and interdiction efforts. Proposed investments include an identity theft awareness and prevention campaign, funding for district attorneys’ offices to continue prosecution of criminal fraud cases, and expanded fraud detection and prevention capabilities in the State Disability Insurance and paid family leave programs.




Office of Data and Digital Innovation a Standalone Department


The May Revision includes $4.8 million ongoing General Fund and six positions, and $20 million one-time General Fund, in 2022-23 for the Digital Innovation Services Revolving Fund to consolidate the Office of Digital Innovation, the Government Excellence and Transformation Center (proposed in the Governor’s Budget), and the CalData Program into the Office of Data and Innovation, as a department under the Government Operations Agency. The Office of Data and Innovation will be established as a standalone department in 2023- 24, to facilitate more efficient state operations and support one-time projects targeted at improving user experiences through the Digital Innovation Services Revolving Fund. 


Technology Modernization Projects


The May Revision includes $55.7 million one-time General Fund in 2022-23, and $711,000 ongoing General Fund and 4 positions to support the modernization of critical state infrastructure. This investment augments the $25 million one-time General Fund provided to the California Department of Technology (CDT) in the 2021 Budget Act for Technology Modernization Funding.


Of the funding provided, $25 million will be used to fund additional projects through the Technology Modernization Funding process, and $30 million to support short-term remediation efforts identified by CDT’s Stabilization Services Assessment team to prevent potential system failure. CDT selected four projects in December 2021 at a total cost of $6.6 million through the first round of Technology Modernization Funding project applications. The second round of proposals is being evaluated and those selected to receive funding are expected to begin in Summer 2022.


Broadband Middle-Mile Initiative


The May Revision includes $600 million one-time General Fund in 2023-24 and

$500 million one-time General Fund in 2024-25 to CDT to support the completion of the Broadband Middle-Mile Initiative. The 2021 Budget Act provided $3.25 billion to CDT for the purpose of building an open-access middle-mile broadband network. Revised estimates produced by CDT indicate a need for this additional funding to complete the Broadband Middle-Mile Initiative due to increased costs of labor and supplies.



CalEPA Shared Technology Refresh -


CalOES - IT Modernization -


Governor’s Office of Planning and Research - Online Document Processing Refresh -

0530 - California Health and Human Services Agency, Secretary for (Number of BCPs: 4)

3480 - Conservation, Department of (Number of BCPs: 4)

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