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IT Modernization

IT Modernization Bill (SF334)
IT Modernization bill language

This bill will establish a new state fund to modernize the information technology (IT) systems used by state agencies, counties, and Tribal Nations to administer human services programs. Before spending money appropriated by the legislature from this new fund, the Department of Human Services (DHS), the Department of Children, Youth, and Families (DCYF), and the Department of Information Technology Services (MNIT) will be required to consult the new advisory council which includes more county appointees (4) than agency appointees. The bill would also appropriate money for certain priority county and agency IT modernization projects, establish a bicameral legislative commission to oversee human services system modernization, and require Minnesota Management and Budget to transfer money to the new fund in certain circumstances.

Key Takeaways

  • The bill appropriates $75 million in FY 26-27 and $15 million in FY 28-29 to IT modernization projects on a more specific list that counties were consulted on than previous IT modernization proposals
  • The bill creates a multi tier oversight process to ensure that counties have a say in how dollars are allocated and the public and the legislature have a better understanding of how dollars are being spent.
  • The bill also creates a transfer mechanism into the modernization fund so that every other year in October if the state has been realizing higher revenues than forecast and has a larger positive balance than it did at the close of the legislative session, those dollars can be dedicated to the fund and IT modernization projects.

Human Services Systems Modernization Advisory Council
Establishes a council to advise state agencies and the legislature regarding the modernization of IT systems used by state agencies, counties, and Tribal Nations to administer human services programs. The council would consist of representatives of DHS, DCYF, MNIT, the Association of Minnesota Counties, the Minnesota Association of County Social Service Administators, and federally recognized Indian Tribes. Requires DHS, DCYF, and MNIT to consult the council before initiating any work on a major IT modernization project or procurement that would materially affect counties or Tribal Nations. If the agencies do not adopt a council recommendation, they must provide a written explanation to the council and the leaders of certain legislative committees. Requires the council to report annually to the newly created legislative commission. This council does not have an expiration date.

Human Services Modernization Fund
Establishes a new fund in the state treasury as a source of funding for multiyear modernization of the IT systems used by state agencies, counties, and Tribal Nations to administer human services programs. Prohibits state agencies from encumbering money appropriated from the fund until the agency has consulted the new advisory council. Specifies the eligible and ineligible uses of money in the account and lists specific eligible activities, which were developed with county consultation. Requires MNIT to develop and maintain a multiyear modernization plan for human services IT systems. Requires MNIT to report annually to the advisory council established under section 2, the legislative commission created under section 4, and the leaders of certain legislative committees regarding the projects funded from the account, the remaining balance, and other items. This fund does not have an expiration date.

The new law also requires Minnesota Management and Budget to transfer money from the general fund to the new fund established in section 3 by October 15 of each odd-numbered year when the balance in the fund is less than $50,000,000 and the actual general fund closing balance for the previous biennium is larger than the balance anticipated at the end of the previous budget-making session. Functionally speaking this is a way to ensure that there is ongoing money to spend on IT modernization projects without requiring the legislature to “find” general fund dollars for it since the money will already be in the human services modernization fund. Dollars will only be deposited in the fund if the positive budget balance is greater on October 15 than it was at the close of the last legislative session, likely due to higher revenue receipts.

Legislative Commission on Human Services Systems
Establishes an eight-member bicameral, bipartisan legislative commission to oversee, monitor, and provide recommendations on the modernization of human services systems. Specifies duties. Requires the Legislative Coordinating Commission to provide administrative support. Requires DHS, DCYF, MNIT, counties, and other state agencies to cooperate with the commission and provide requested information. Requires the commission to report annually to the leaders of certain legislative committees. Expires at the end of 2033.