STAFF FIGURE SETTING FY 2020-21 INFORMATION ... › sites › default › files › fy2020-21...Appendix B: JTC Feb. 18, 2020, Recommendation Letter to JBC .....12 STAFF WORKING DOCUMENT

STAFF FIGURE SETTING FY 2020-21

INFORMATION TECHNOLOGY PROJECTS

JBC WORKING DOCUMENT - SUBJECT TO CHANGE STAFF RECOMMENDATION DOES NOT REPRESENT COMMITTEE DECISION

PREPARED BY: ALFREDO KEMM, JBC STAFF

MARCH 10, 2020

JOINT BUDGET COMMITTEE STAFF 200 E. 14TH AVENUE, 3RD FLOOR · DENVER · COLORADO · 80203

TELEPHONE: (303) 866-2061 · TDD: (303) 866-3472 https://leg.colorado.gov/agencies/joint-budget-committee

CONTENTS

Overview......................................................................................................................................................... 1

Summary of Staff Recommendations ......................................................................................................... 1

Major Differences from JTC Recommendations ..................................................................................... 1

JTC Recommendations Summary ............................................................................................................... 1

Major Differences from the Governor's Request ..................................................................................... 1

Recommendations Table .............................................................................................................................. 3

Project Summaries ......................................................................................................................................... 3

General Fund Transfer to the Capital Construction Fund ..................................................................... 6

Decision Items – IT Capital ............................................................................................................................. 8

1. JTC IT Capital Prioritization and Recommendations ..................................................... 8

2. Transfers to balance the IT Capital Account of the Capital Construction Fund ........ 8

3. JBC Letter to the JTC Regarding Recommendations for the Budget Process for Agile Development ........................................................................................................................................ 8

Long Bill Footnotes and Requests for Information .................................................................................... 9

Appendix A: Draft JBC Letter to JTC Regarding Agile Budget Processes ............................................. 10

Appendix B: JTC Feb. 18, 2020, Recommendation Letter to JBC .......................................................... 12

STAFF WORKING DOCUMENT – DOES NOT REPRESENT COMMITTEE DECISION

10-Mar-2020 1 IT CAP-fig

OVERVIEW

Pursuant to Section 2-3-1704 (11)(a), C.R.S., the Joint Technology Committee is tasked withproducing a written report setting forth recommendations, prioritization, findings, and othercomments with respect to each information technology budget request submitted for considerationby the executive branch for inclusion in the capital construction section of the Long Bill. The reportmust be submitted to the Joint Budget Committee by February 15th of each year.

The Joint Budget Committee is required to consider the prioritized list of information technologybudget requests made by the Joint Technology Committee. If the Joint Budget Committee alters thedeterminations of priority established by the Joint Technology Committee, it is required to notify theJoint Technology Committee of the changes and allow for a joint meeting of the two committees todiscuss the differences.

SUMMARY OF STAFF RECOMMENDATIONS

In deference to the legislative process for capital construction and the role of the JTC, JBC staff doesnot typically make recommendations on the prioritization of capital projects.

1 Staff recommends that the Committee approve and fund state-funded capital construction

projects to the extent that funding is available for projects as prioritized by the JTC.

2 Staff recommends that the Committee approve the JTC-recommended cash funded projects.

MAJOR DIFFERENCES FROM JTC RECOMMENDATIONS

The staff recommendation is consistent with the JTC prioritization and recommendation.

JTC RECOMMENDATIONS SUMMARY

The Joint Technology recommends 13 state-funded information technology projects and three cash-funded projects. These projects total $46.1 million total funds, including $36.2 million General Fund,for FY 2020-21.

MAJOR DIFFERENCES FROM THE GOVERNOR'S REQUEST

The November 1 and January 2 requests included appropriations of $30.5 million total funds,including $21.8 million Capital Construction Fund and $8.7 million cash, reappropriated, or federalfunds for 3 state-funded and 3 cash-funded items. The following table outlines the differences betweenthe Governor's request and the JTC recommendations.



JTC DIFFERENCES FROM THE GOVERNOR'S REQUEST ($ AMOUNTS IN MILLIONS)

STATE-FUNDED

ITEMS

CASH-FUNDED

ITEMSCCF CF/RF/FF TOTAL FUNDS

GovernorNovember 1 request 3 2 $20,736,675 $7,103,362 $27,840,037January 2 request 0 1 1,111,444 1,575,000 2,686,444Subtotal - Governor 3 3 $21,848,119 $8,678,362 $30,526,481

JTCState-funded prioritized recommendations 13 0 $36,235,655 $5,224,199 $41,459,854Cash-funded, non-prioritizedrecommendations

0 3 0 4,609,795 4,609,795

Subtotal - All JTC recommendations 13 3 $36,235,655 $9,833,994 $46,069,649

JTC Difference from Governor 10 0 $14,387,536 $1,155,632 $15,543,168

As reflected in the table, the JTC recommendations include an additional$15.5 million in total funds,including $14.4 million in state funds, above the Governor's request for prioritized recommendations.This amount equals the additional state-funded projects recommended by the JTC.

STAFF OBSERVATIONS

Staff officially recommends the JTC prioritization list in deference to the legislative process. However,staff is concerned about the requests recommended for institutions of higher education.

Section 2-3-1701 (2)(b), C.R.S., specifies that "information technology" does not mean post-implementation support, hardware life-cycle replacement, or routine maintenance. While the requestsfrom institutions of higher education generally identify IT infrastructure hardware and networkreplacements and upgrades, it is staff's opinion that these requests qualify within the general definitionof information technology projects without violating this provision.

However, that definition, when it specifically speaks to hardware life-cycle replacement, appears tocome very close to defining some of the elements included in these requests. Information technologyhardware and network infrastructure generally advances rapidly enough that any "replacement" systemwould necessarily be an upgrade rather than simply a replacement.

The letter from the JTC states:During the prioritization process, members of the JTC expressed a strong desire to provide fundingand support for institutions of higher education, which includes investing in technology that supportsthe success of students and staff. The committee also expressed interest in providing support tocommunity colleges and institutions located in rural areas of the state.

As staff has included in discussions about building capital, it may be appropriate to provide an amountstate resources to the institutions of higher education – in this case for IT capital-related projects.However, funding provided for "projects" that is generally about maintaining and upgrading campushardware and network infrastructure to increase capacity and security, perhaps should be providedmore fairly across all institutions as a portion of regular higher education funding and not on a projectbasis. While some of the projects requested for FY 2020-21 have more or less distinct aspects, theyall generally share the same broad objectives, very likely scaled to the size of the institution.



RECOMMENDATIONS TABLE The following table outlines the FY 2020-21 Capital Construction Recommended Appropriations, that include: the JTC's prioritized list including state-funded and cash-funded recommendations; and the staff-recommended technical adjustments to reflect reappropriated funds appropriations to OIT.

FY 2020-21 IT CAPITAL RECOMMENDED APPROPRIATIONS

JTC

OS

PB

CC

HE

TOTAL FUNDS

CAPITAL

CONSTRUCTION

FUND CF/RF/FF

CUMULATIVE

CCF

PRIORITY JTC PRIORITIZED RECOMMENDATIONS FOR FUNDING

1 1 PER: HRWorks $12,411,444 $12,411,444 $0 $12,411,444

2 2 GOV: CO Health IT Roadmap Initiatives, Office of eHealth Innovation

4,450,000 445,000 4,005,000 12,856,444

3 3 2 HED: ASU/FLC/WSCU Digital Transformation Initiative for Rural Higher Education (ph. 1 of 2)

9,082,500 8,991,675 90,825 21,848,119

subtotal - state-funded JTC and OSPB recommended $25,943,944 $21,848,119 $4,095,825

4 1 DNR: Parks and Wildlife Website Redesign and Platform Migration

$924,000 $0 $924,000 $21,848,119

5 2 DPS: Colorado Crime Information Center (CCIC) Migration 2,110,795 0 2,110,795 21,848,119

6 4 CDPHE: Newborn Screening Laboratory Information Management System

1,575,000 0 1,575,000 21,848,119

subtotal - cash-funded JTC and OSPB recommended $4,609,795 $0 $4,609,795

7 (4) 1 HED: CSU Upgrade Network Hardware $745,000 $545,000 $200,000 $22,393,119

8 (9) 7 HED: OJC Technology and Equipment Upgrades 722,750 597,750 125,000 22,990,869

9 (8) 6 HED: MSU-D IT Infrastructure Modernization 3,675,000 3,305,000 370,000 26,295,869

10 (10) 8 HED: CCA Improving Student Access to Technology 527,845 475,061 52,784 26,770,930

11 (12) 10 HED: CNCC Computer/Network Upgrades 812,172 812,172 0 27,583,102

12 (5) 2 HED: UNC Next Generation Cyber Secure Network 1,387,867 1,373,988 13,879 28,957,090

13 (6) 4 HED: CMU Network Security and Resiliency Project 2,472,417 2,249,898 222,519 31,206,988

14 (11) 9 HED: TSJC Technology Infrastructure 636,846 636,846 0 31,843,834

15 (13) 11 HED: CSUP Communications System Upgrades 2,132,807 2,132,807 0 33,976,641

16 (7) 4 HED: CCD Classroom and Conference Room Technology 2,403,206 2,259,014 144,192 36,235,655

subtotal - additional state-funded JTC recommended $15,515,910 $14,387,536 $1,128,374

Total - JTC Prioritized for Funding $46,069,649 $36,235,655 $9,833,994

PROJECT SUMMARIES 1. HR WORKS (DEPARTMENT OF PERSONNEL, OSPB PRIORITY #1): The JTC recommends an appropriation of $12.4 million Capital Construction Fund for the Department of Personnel's HR Works project. This appropriation is intended to fund the completion of the system replacement of the existing human resources and payroll processing legacy systems. The new system is intended to provide a centralized solution for payroll and human resources management functions for all state agencies. 2. CO HEALTH IT ROADMAP INITIATIVES (OFFICE OF THE GOVERNOR, OSPB PRIORITY #2): The JTC recommends an appropriation of $4.5 million total funds, including $445,000 Capital Construction Fund and $4.0 million federal funds, for the Office of eHealth Innovations in the Office of the Governor and the Department of Health Care Policy and Financing. This funding represents the third phase of a three-phase project to implement initiatives of the Colorado Health IT Roadmap



for a variety of purposes, including data quality improvement, reporting upgrades, integrating cost and quality data, and using information technology to benefit coordination of care. Prior appropriations for this project totaled $18.0 million total funds, including $3.0 million General Fund and $15.0 million federal funds. 3. DIGITAL TRANSFORMATION INITIATIVE FOR RURAL HIGHER EDUCATION (ADAMS STATE

UNIVERSITY/FORT LEWIS COLLEGE/WESTERN STATE COLORADO UNIVERSITY, CCHE IT

PRIORITY #1, OSPB PRIORITY #3): The JTC recommends an appropriation of $9.1 million total funds, including $9.0 million Capital Construction Fund and $90,825 cash funds (unspecified), for the first phase of a $20.9 million, two-phase project for Adams State University, Fort Lewis College, and Western State Colorado University. The project is intended to modernize the institutions' Enterprise Resource Planning (ERP) systems, which manage human resources and finance components and student information systems (SIS), and move to a cloud-based ERP/SIS solution. Out-year costs total $11.8 million, including $11.7 million Capital Construction Fund and $118,125 cash funds. 4. PARKS AND WILDLIFE WEBSITE (DEPARTMENT OF NATURAL RESOURCES, OSPB CASH-FUNDED PRIORITY #1): The JTC recommends a one-time appropriation of $924,000 cash funds for a website redesign and platform migration. Cash funding will be split 60 percent from the Wildlife Cash Fund and 40 percent from the Parks and Outdoor Recreation Cash Fund. This cash fund proportion is consistent with the Department's Payments to OIT fund source split. 5. COLORADO CRIME INFORMATION CENTER (DEPARTMENT OF PUBLIC SAFETY, OSPB CASH-FUNDED PRIORITY #2): The JTC recommends a one-time appropriation of $2.1 million cash funds from the Identification Unit Cash Fund for system migration of the Colorado Crime Information Center (CCIC) hardware and software to a private cloud environment. This project transitions the existing software and databases from the 11-year-old agency hardware to a hybrid environment using a private cloud solution for the production system and the CDPS private cloud for the disaster recovery system. The project includes hardware procurement, data migration, software migration, testing, project management, and telecommunications components related to the hardware replacement. 6. NEWBORN SCREENING LABORATORY INFORMATION MANAGEMENT SYSTEM (DEPARTMENT

OF PUBLIC HEALTH AND ENVIRONMENT, OSPB CASH-FUNDED PRIORITY #4): The JTC recommends a one-time appropriation of $1.6 million cash funds from the Newborn Screening and Genetic Counseling Cash Funds to implement and validate a replacement laboratory information management system (LIMS) to support the Colorado Newborn Screening Program. The proposed LIMS system will replace the current 2005 system that depends on a legacy operating system, Microsoft Windows 7, for which Microsoft ended support in January 2020. The LIMS provides a central repository for program functions including regulatory compliance, operational logistics, and contract monitoring. In 2018, the Newborn Screening Program received approximately 135,000 specimens generating 10 million test results, interpreted using the clinical logic within the LIMS. 7. UPGRADE NETWORK HARDWARE (COLORADO STATE UNIVERSITY, CCHE IT PRIORITY #1): The JTC recommends an appropriation of $745,000 total funds, including $545,000 Capital Construction Fund and $200,000 cash funds (unspecified), for Colorado State University Fort Collins for the first phase of a $4.5 million, three-phase technology hardware project. Out-year costs total $2.6 million Capital Construction Fund and $1.1 million cash funds. The project upgrades out-of-date networking hardware to increase network capacity, provide IT security enhancements, and support



for life safety devices that require modern switches capable of supplying power over Ethernet to "internet of things" systems such as surveillance cameras, sensors, monitors, and alarms. 8. TECHNOLOGY AND EQUIPMENT UPGRADES (OTERO JUNIOR COLLEGE, CCHE IT PRIORITY

#7): The JTC recommends a one-time appropriation of $722,750 total funds, including $597,750 Capital Construction Fund and $125,000 cash funds from technology fees assessed to students. The project will replace and upgrade technology equipment in computer laboratories, library, classrooms, and enhance an improved emergency notification system. 9. IT INFRASTRUCTURE (METROPOLITAN STATE UNIVERSITY OF DENVER, CCHE IT PRIORITY

#6): The JTC recommends an appropriation of $3.7 million total funds, including $3.3 million Capital Construction Fund and $370,000 cash funds (unspecified) for the first phase of a $4.3 million, two-phase project for the Metropolitan State University of Denver. Out-year costs total $656,250, including $586,250 Capital Construction Fund and $70,000 cash funds. Phase I of the project will include installation of fiber optic infrastructure to complete the campus network loop, the replacement of 25 distribution layer switches, and the replacement of 375 edge switches. Phase II will include replacement of 450 wireless access points. 10. IMPROVING STUDENT ACCESS TO TECHNOLOGY (COMMUNITY COLLEGE OF AURORA, CCHE IT PRIORITY #8): The JTC recommends a one-time appropriation of $527,845 total funds, including $475,061 Capital Construction Fund and $52,784 cash funds (unspecified) for the Community College of Aurora. Although cash funds are unspecified in the request narrative, the narrative states that if the request is not funded "CCA will have to divert our student technology fee money of $200,000 - $250,000 per year for several years." The project includes upgraded servers and wireless infrastructure. 11. COMPUTER/NETWORK UPGRADES (COLORADO NORTHWESTERN COMMUNITY COLLEGE, CCHE IT PRIORITY #10): The JTC recommends an appropriation of $812,172 Capital Construction Fund for the first phases of a $1.6 million, five-year, four-phase project for the Colorado Northwestern Community College. Out-year costs total an additional $812,172 over years 3, 4, and 5 of the project. The project upgrades network bandwidth capacity. 12. NEXT GENERATION CYBER SECURE NETWORK (UNIVERSITY OF NORTHERN COLORADO, CCHE IT PRIORITY #2): The JTC recommends a one-time appropriation of $1.4 million total funds, including $1.4 million Capital Construction Fund and $13,879 cash funds (unspecified) for the University of Northern Colorado to implement a next generation network. The request narrative states that the institution requests one-time funding in order to adopt a new architecture; operational funding is dedicated to supporting the existing network infrastructure; and the institution is prepared to fund the ongoing maintenance and support for the new architecture. 13. NETWORK SECURITY AND RESILIENCY PROJECT (COLORADO MESA UNIVERSITY, CCHE IT

PRIORITY #4): The JTC recommends a one-time appropriation of $2.5 million total funds, including $2.2 million Capital Construction Fund and $222,519 cash funds (unspecified) for Colorado Mesa University. The project upgrades the core network switch, main campus local area network, and edge switches in residence halls. 14. TECHNOLOGY INFRASTRUCTURE (TRINIDAD STATE JUNIOR COLLEGE, CCHE IT PRIORITY

#9): The JTC recommends an appropriation of $636,846 Capital Construction Fund for phase one



of a $1.2 million, two-phase project for the Trinidad State Junior College. Out-year costs total $532,918 Capital Construction Fund. The project is intended to strengthen instructional and academic support activities, mitigate security and safety risks, and improve infrastructure, including surveillance and backup recovery systems. 15. COMMUNICATIONS SYSTEM UPGRADES (CSU-PUEBLO, CCHE IT PRIORITY #11): The JTC recommends a one-time appropriation of $2.1 million Capital Construction Fund for Colorado State University-Pueblo. The project replaces the current campus PBX telephone system with a voice over internet protocol (VOIP) communications system. 16. CLASSROOM AND CONFERENCE ROOM TECHNOLOGY (COMMUNITY COLLEGE OF DENVER, CCHE IT PRIORITY #4): The JTC recommends an appropriation of $2.4 million total funds, including $2.3 million Capital Construction Fund and $144,192 cash funds (unspecified) for the first phase of a $7.4 million, three-phase project for the Community College of Denver. Out-year costs total $4.7 million Capital Construction Fund and $300,000 cash funds. The project replaces, updates, and standardizes classroom and conference room technology.

GENERAL FUND TRANSFER TO THE CAPITAL CONSTRUCTION FUND The following table outlines the IT Capital Account of the Capital Construction Fund balance, transfers, appropriations, and potential FY 2020-21 capital construction appropriations requiring a transfer from the General Fund.

FY 2020-21 IT CAPITAL ACCOUNT OF THE CCF

IT Capital Account Beginning Balance - July 1, 2020 $0

ITCA Reversions - FY 2018-19 18,948,209

ITCA Interest - FY 2018-19 2,186,500

H.B. 20-1259 Capital Construction Supplemental (7,466,648)

H.B. 20-1261 General Fund Transfer to IT Capital Account 7,466,648

ITCA Beginning Balance - FY 2020-21 $21,134,709

FY 2020-21 Recommended State Funds for IT Capital

JTC-OSPB Recommendations 1-3 21,848,119

ITCA Balance ($713,410)

Recommended GF transfer for FY 2020-21 $713,410

FY 2020-21 Additional Recommended State Funds for IT Capital

JTC Recommendations 7-16 14,387,536

ITCA Balance ($15,100,946)

Recommended GF transfer for FY 2020-21 $15,100,946

Alternatively, given the substantial balance available due to reversions and interest, the Committee could choose to engage in a balancing action for FY 2019-20, that would transfer the available $21.1 million to the General Fund. The following table outlines this scenario.



FY 2020-21 IT Capital Account of the CCF

IT Capital Account Beginning Balance - July 1, 2020 $0

ITCA Reversions - FY 2018-19 18,948,209

ITCA Interest - FY 2018-19 2,186,500

H.B. 20-1259 Capital Construction Supplemental (7,466,648)

H.B. 20-1261 General Fund Transfer to IT Capital Account 7,466,648

ITCA Beginning Balance - FY 2020-21 $21,134,709

Optional Balancing Action for FY 2019-20

Transfer surplus ITCA to General Fund ($21,134,709)

ITCA Beginning Balance - FY 2020-21 $0

FY 2020-21 Recommended State Funds for IT Capital

JTC-OSPB Recommendations 1-3 21,848,119



FY 2020-21 Additional Recommended State Funds for IT Capital

JTC Recommendations 7-16 14,387,536



Rather than engage in a balancing action for FY 2019-20, staff recommends that the Committee use the available balance of $21.1 million to fund the projects approved for FY 2020-21. JTC recommended projects 1 through 3 total $21.8 million, requiring a General Fund transfer of $713,410 for FY 2020-21. JTC recommended projects 7 through 16 total an additional $14.4 million, requiring a General Fund transfer of $15,100,946.



DECISION ITEMS – IT CAPITAL

1. JTC IT CAPITAL PRIORITIZATION AND RECOMMENDATIONS JTC RECOMMENDATION: The JTC has:

Prioritized and recommended 13 state-funded capital construction items for funding in the Long Bill, that total $41.5 million, including $36.2 million Capital Construction Fund and $5.2 million cash, reappropriated, or federal funds; and

Recommended 3 cash-funded capital construction items that include $4.6 million cash, reappropriated, or federal funds.

JBC STAFF RECOMMENDATION: In deference to the legislative process for capital construction and the role of the JTC, JBC staff does not typically make recommendations on the prioritization of capital projects. 1 Staff recommends that the Committee approve and fund state-funded IT capital projects to the

extent that funding is available for projects as prioritized by the JTC.

2 Staff further recommends that the Committee approve the JTC-recommended cash funded

projects.

JTC recommended appropriations total $46,069,649, including $36,235,655 Capital Construction Fund and $9,833,994 cash, reappropriated, or federal funds.

2. TRANSFERS TO BALANCE THE IT CAPITAL ACCOUNT OF THE CAPITAL

CONSTRUCTION FUND STAFF RECOMMENDATION: The Committee has approved a bill draft for capital-related transfers. Staff recommends that the Committee approve transfers as necessary to balance the IT Capital Account of the Capital Construction Fund for all state-funded appropriations for approved information technology projects, to be included in that bill draft. The Committee will have the opportunity to review a final draft prior to introduction in the Long Bill package.

3. JBC LETTER TO THE JTC REGARDING RECOMMENDATIONS FOR THE BUDGET

PROCESS FOR AGILE DEVELOPMENT STAFF RECOMMENDATION: Appendix A includes a draft letter to the JTC as requested by the Committee at the supplemental presentation. The Committee may approve the draft or offer additional edits or guidance as necessary.



LONG BILL FOOTNOTES AND REQUESTS FOR INFORMATION

LONG BILL FOOTNOTES The Long Bill for FY 2019-20 included no footnotes specific to IT Capital. Staff recommends no footnotes for IT Capital for FY 2020-21. REQUESTS FOR INFORMATION The Long Bill for FY 2019-20 included no requests for information specific to IT Capital. Staff recommends no requests for information for IT Capital for FY 2020-21.

STATE OF COLORADO REPRESENTATIVES STAFF DIRECTOR DANEYA ESGAR, CHAIR CAROLYN KAMPMAN JULIE MCCLUSKIE KIM RANSOM SENATORS DOMINICK MORENO, VICE-CHAIR RACHEL ZENZINGER BOB RANKIN JOINT BUDGET COMMITTEE LEGISLATIVE SERVICES BUILDING 200 EAST 14TH AVENUE, 3RD FLOOR DENVER, CO 80203 TELEPHONE 303-866-2061 http://leg.colorado.gov/agencies/joint-budget-committee

March 10, 2020 Senator Nancy Todd, Chair Joint Technology Committee 200 East Colfax Avenue Denver, CO 80203 Dear Senator Todd, In an action taken as a part of Capital Construction figure setting on February 28th, the Joint Budget Committee (JBC) has voted to change the structure of the Long Bill in order to provide a separate section of the Long Bill for Information Technology Projects. This change would be effective in the 2021 Long Bill and is intended to better address the unique needs of information technology projects and IT capital generally as distinct from building capital in the budget process. The JBC respectfully requests that the Joint Technology Committee (JTC) make recommendations to the JBC regarding changes to the budget process to better accommodate agile development methodology and processes for information technology projects. Such recommendations may include, but need not be limited to:

The period of appropriation spending authority;

Expectations or requirements for achieving and reporting progress within the agile development model;

Standards for reporting cost metrics related to the stages of agile development with comparison to the proposed plan;

Expectations or requirements for updating and communicating changes to the JTC and JBC for multi-year projects based on advanced progress or challenges experienced within the agile development model;

Expectations or requirements for updating and communicating changes to the JTC and JBC for anticipated annual operating and ongoing development improvement funding needs at the completion of initial development that provides for implementation of a minimally viable or acceptable project; and

Recommendations for common language and definitions that best identify and describe legislative oversight and budget process components relative to the agile development model.

Appendix A: Draft JBC Letter to JTC Regarding Agile Budget Processes


Such recommendations may include recommendations for statutory change. However, as is the case for building capital in the Capital Construction section of the Long Bill, such recommendations may be better specified and incorporated within the head notes section of the Information Technology Projects section of the Long Bill. The head notes provide greater ongoing flexibility and annual adjustment to incorporate lessons learned in the evolution of the budget management of agile development. The JBC has requested JBC staff to include such recommendations at the staff briefing in November for implementation as early as the 2021 budget cycle. The JBC requests that any recommendations for changes to the budget process recommended by the JTC be provided to the JBC by October 1, 2020, in order to better allow staff to incorporate JTC recommendations into a staff budget briefing discussion. If you have any questions concerning this request, please contact the JBC staff analyst for IT Capital, Alfredo Kemm, at 303-866-4549. Sincerely, Daneya Esgar Chair, Joint Budget Committee cc: Carolyn Kampman, JBC Staff Director Alfredo Kemm, JBC Staff Luisa Altman, JTC Staff Andrea Denka, JTC Staff Jean Billingsley, JTC Staff

Appendix A: Draft JBC Letter to JTC Regarding Agile Budget Processes


1

Rep. Jonathan Singer, Chair Rep. Mark Baisley Rep. Brianna Titone

Sen. Nancy Todd, Vice-Chair Sen. Jeff Bridges Sen. Jack Tate

February 18, 2020 Representative Daneya Esgar Chair, Joint Budget Committee 200 East 14th Avenue, Third Floor Denver, Colorado 80203 Dear Representative Esgar, The Joint Technology Committee (JTC) is pleased to forward its funding recommendation for the FY 2020-21 information technology (IT) capital projects. At its meeting on February 12, 2020, the JTC considered 16 IT capital projects pursuant to Joint Rule 45 and Section 2-3-1704 (11)(a), C.R.S. The JTC is recommending, in priority order, funding for 16 projects, as shown in Attachment A. This includes 13 state-funded projects and three cash-funded projects, for a total of $36.2 million state funds and $9.8 million cash funds and federal funds spending authority. The JTC requests that the JBC fund the listed projects in priority order. If, during deliberations, the JBC considers changing the order, cost, or scope of the priority recommendation, the JTC requests that the two committees meet to discuss these changes, subject to Section 2-3-203 (1)(b.1)(I)(C), C.R.S. Cash-Funded Recommendation The JTC is recommending cash funds spending authority for three state department projects. These include projects for the Department of Natural Resources, the Department of Public Safety, and the Department of Public Health and Environment and total $4,609,795 in cash funds spending authority for FY 2020-21. State-Funded Recommendation The JTC is recommending state funding for 13 projects, which consists of two state department projects and 11 higher education projects. These projects total $36,235,655 in state funds and $5,224,199 in cash funds and federal funds spending authority for FY 2020-21. The JTC recommends funding these requests for FY 2020-21 with a General Fund transfer of $21,848,119 to the IT Capital Subaccount within the Capital Construction Fund (CCF) and using $14,387,536 of available reversions and interest currently in the CCF IT Capital Subaccount.

Joint Technology Committee

State Capitol Building, Room 029 Denver, Colorado 80203-1784

(303) 866-3521


2

General Fund. Of these projects, the first three projects recommended for funding by the JTC align with the Governor’s Office of State Planning and Budgeting (OSPB) funding recommendations. These projects total $21,848,119 in state funds and $4,095,825 in cash funds and federal funds spending authority for FY 2020-21. The three projects include the Department of Personnel and Administration’s HRWorks project; phase three of the Office of eHealth Innovation’s Health IT Roadmap Initiatives, which includes substantial federal matching funds; and the Digital Transformation Initiative, which is a collaborative effort among Adams State University, Fort Lewis College, and Western Colorado University. The JTC recommends a General Fund transfer of $21,848,119 into the Capital Construction Fund (CCF) to fully fund these projects for FY 2020-21. Reversions and interest. The 10 remaining projects are higher education requests that the JTC recommends funding. These projects were not included in OSPB’s funding recommendation. These projects total $14,387,536 in state funds and $1,128,374 in cash funds for FY 2020-21. During the prioritization process, members of the JTC expressed a strong desire to provide funding and support for institutions of higher education, which includes investing in technology that supports the success of students and staff. The committee also expressed interest in providing support to community colleges and institutions located in rural areas of the state. Some examples outlining the committee’s recommendation to fund higher education projects include:

the Colorado State University project because of its position as being the number one recommended project by the Colorado Commission on Higher Education;

the Otero Junior College project because of its geographic location and economic need of the area;

the Metropolitan State University Denver project, because of its potential to provide benefits to all institutions on the Auraria campus;

the Community College of Aurora project because of the impact current IT failures are having on student experience and the diverse student population served by the college; and

the Colorado Northwestern Community College project because of its rural location and critical IT infrastructure being requested.

The JTC recommends using $14,387,536 of the available reversions and interest currently in the CCF IT Capital Subaccount to fund these projects. The JTC believes that the reversions from the efficient implementation of the DRIVES IT project should be used to fund other IT capital projects. The JTC recommends that the remaining $6.7 million in reversions and interest in the CCF IT Capital Subaccount be transferred to the State Highway Fund. Comparison to Governor’s recommendation. The November 1, 2019, recommendation made by OSPB reflected a $21,848,119 General Fund transfer for IT capital projects. The JTC recommendation aligns with this recommendation. However, OSPB recommended transferring the $21 million in reversions and interest in the CCF IT Capital Subaccount to the State Highway Fund. The JTC believes that because the majority of this money is available due to the efficient completion of the DRIVES IT project, $14.4 million should be used to fund other IT capital projects and allow the state to further its investment in higher education. The JTC recommends transferring the $6.7 million remaining in the CCF IT Capital Subaccount to the State Highway Fund. Summaries of the recommended projects are provided in Attachment B. If you have any questions or concerns about the JTC’s recommendations, please call Luisa Altmann, Legislative Council Staff, at 303-866-3518.



JTC

Priority Agency/Institution Project Title CCF Request CF Request FF Request Total

1 Department of Personnel and Administration HRWorks $12,411,444 $0 $0 $12,411,444

2 Office of eHealth Innovation Health IT Roadmap Initiatives (Phase 3 of 3) 445,000 0 4,005,000 $4,450,000

3 Adams State, Fort Lewis, Western Colorado Digital Transformation Initiative 8,991,675 90,825 0 $9,082,500

Subtotal: $21,848,119 $90,825 $4,005,000 $25,943,944

4 Department of Natural Resources Parks and Wildlife Website Redesign and Plaform Migration 0 924,000 0 $924,000

5 Department of Public Safety Colorado Crime Information Center (CCIC) Migration to Cloud 0 2,110,795 0 $2,110,795

6 Department of Public Health and Environment Newborn Screening Laboratory Information Management System 0 1,575,000 0 $1,575,000

Subtotal: $0 $4,609,795 $0 $4,609,795

7 CSU-Ft. Collins Upgrade Network Hardware 545,000 200,000 0 $745,000

8 Otero Junior College Technology and Equipment Upgrades (Phase 2) 597,750 125,000 0 $722,750

9 Metropolitan State University of Denver IT Infrastructure Modernization 3,305,000 370,000 0 $3,675,000

10 Community College of Aurora Improving Student Access to Technology 475,061 52,784 0 $527,845

11 Colorado Northwestern Community College Computer/Network Upgrades 812,172 0 0 $812,172

12 University of Northern Colorado Next Generation Cyber Secure Network 1,373,988 13,879 0 $1,387,867

13 Colorado Mesa University Network Security and Resilliency 2,249,898 222,519 0 $2,472,417

14 Trinidad State Junior College Technology Infrastructure 636,846 0 0 $636,846

15 CSU-Pueblo Communications System Upgrade 2,132,807 0 0 $2,132,807

16 Community College of Denver Classroom and Conference Room Technology 2,259,014 144,192 0 $2,403,206

Subtotal: $14,387,536 $1,128,374 $0 $15,515,910

OSPB: Governor's Office of State Planning and Budgeting

CCHE: Colorado Commission on Higher Education

CCF: Capital Construction Fund (state funds)

CF: Cash Fund

FF: Federal Funds

NP: Not Prioritized, but recommended for funding

Prepared by Legislative Council Staff. Updated February 12, 2020

State Funded Requests Recommended for Funding using Available Reversions and Interest in the CCF IT Capital Subaccount

FY 2020-21 Information Technology Capital Budget RequestsRequests recommended for funding by the Joint Technology Committee

State Funded Requests Recommended for Funding using a Transfer to the General Fund

Cash-Funded Requests Recommended for Funding


Project Title

FY 2020-21 Information Technology Capital Budget Recommendation

Fund Source Amount

Human Resource Information System

HRWorks is designed to replace the state’s legacy payroll system and other existing human resources systems with an integrated human resources information system. The new system is intended to provide a centralized solution for critical payroll and human resources management functions for all statewide agencies.

2015-0451

Personnel and Administration

CCF $12,411,444

Health IT Roadmap Initiatives

The Office of eHealth Innovation and the Colorado Department of Health Care Policy and Financing are requesting a combination of state funds and federal funds spending authority for the third phase of a three-phase project to implement nine initiatives in the Colorado Health IT Roadmap to support health delivery reform, payment reform, improve care coordination, reduce costs, and ultimately improve health care value.

2019-1492

Governor

CCF $445,000

FF $4,005,000

Digital Transformation Initiative

Adams State University, Fort Lewis College, and Western Colorado University are requesting a combination of state funds and cash funds spending authority for phase one of a two-phase project to modernize the institutions’ Enterprise Resource Planning (ERP) systems, which manage human resources and finance components, and student information systems (SIS), and move to a cloud-based ERP/SIS solution.

2021-0173

Higher Education

CCF $8,991,675

CF $90,825

CPW Website Redesign

The project redesigns the Colorado Parks and Wildlife website and migrates it onto a new platform.

2021-0164

Natural Resources

CF $924,000

CCIC Migration to Cloud

The project migrates the Colorado Crime Information Center Criminal Justice Information Services system to a cloud-based solution.

2021-0155

Public Safety

CF $2,110,795

Newborn Screening Information Management System

The project replaces and upgrades the laboratory information management system that supports the Colorado Newborn Screening Program.

2021-0266

Public Health and Environment

CF $1,575,000

Prepared by Legislative Council Staff Page 1 of 310-Mar-20 16 IT CAP-fig

Project Title


Fund Source Amount

Network Refresh and Upgrade

Colorado State University is requesting a combination of state funds and cash funds spending authority for phase one of a three-phase project to upgrade out-of-date networking hardware. As part of phase one of this project, it is anticipated that at least 165 edge switches will be replaced.

2020-0277

Colorado State University

CCF $545,000

CF $200,000

Technology and Communications Upgrades

The project updates computers in computer laboratories, the library, and classrooms and enhances the emergency notification system on campust to improve campus instruction and communication.

2019-1538

Otero Junior College

CCF $597,750

CF $125,000

IT Infrastructure

The project will purchase and install a fiber optic structure, 25 distribution and layer switches, and 375 edge switches to prevent future network failures.

2021-0209

Metropolitan State University of Denver

CCF $3,305,000

CF $370,000

Improving Student Access to Technology

The Community College of Aurora is requesting a combination of state funds and cash funds spending authority to upgrade server hardware and wireless infrastructure.

2020-02610

Community College of Aurora

CCF $475,061

CF $52,784

Computer and Network Upgrades

The project will replace and install new passive optical fiber in the college's main administrative building, which houses the college's data center to increase network performance and bandwitdth.

2021-02111

Colorado Northwestern Community College

CCF $812,172

Secure Cyber Network

The project improves network infrastructure by replacing aging equipment and increasing network security that will create a scalable, efficient, and secure network that reduces costs.

2020-02912

University of Northern Colorado

CCF $1,373,988

CF $13,879


Project Title


Fund Source Amount

Network Security and Resiliency

The project upgrades the university's core network switch and network backbound and upgrades edge switches in the data center and campus residence halls to improve network security, performance, and user experience.

2021-01813

Colorado Mesa University

CCF $2,249,898

CF $222,519

Technology Infrastructure

The project updates current surveillance and backup recovery systems, replaces parts of the network infrastructure, and installs instructional technology. Additionally, the project upgrades network infrastructure, including wireless and disaster recovery systems to mitigate network failure risks.

2019-15614

Trinidad State Junior College

CCF $636,846

Communications System Upgrade

Colorado State University-Pueblo is requesting state funds to replace the campus telephone system. The university will use funding to; install a new 1,000-license, voice over internal protocol (VoIP) phone system; install 20 new campus emergency telephones; and install 34 additional edge switches for IT data closets.

2020-02815

Colorado State University — Pueblo

CCF $2,132,807

Classroom and Conference Room Technology

The project replaces, updates, and standardizes the college's classroom and conference room technology, which includes conferencing equipment, screen sharing equipment, projection and video display equipment, connecting and switching equipment, and conference phones to improve instruction and enhance student learning.

2021-01916

Community College of Denver

CCF $2,259,014

CF $144,192

$46,069,649Total Request Amount


Documents

STAFF FIGURE SETTING FY 2020-21 INFORMATION ... › sites › default › files › fy2020-21...Appendix B: JTC Feb. 18, 2020, Recommendation Letter to JBC .....12 STAFF WORKING DOCUMENT