What's Happening?
California is set to continue its work on several major IT projects in 2026, despite facing a challenging budget situation. The state's Legislative Analyst's Office has described the budget position as 'weak,' with potential structural deficits. Among
the key projects is the Child Welfare Digital Services (CWS-CARES), which aims to create a modern, compliant child welfare information system. This project has already seen significant investment and plans to pilot test Version 1 in 2026. The Employment Development Department's EDDNext project is also progressing, focusing on implementing a new document management system and redesigning benefit application forms. The California State Payroll System, managed by the State Controller’s Office, is moving into Phase 1 with CGI Technologies as the system integrator. Additionally, the Franchise Tax Board is advancing its Enterprise Data to Revenue (EDR2) project, with plans to deliver the full solution by the end of 2026.
Why It's Important?
These IT projects are crucial for modernizing California's state systems, which can lead to improved efficiency and service delivery. The Child Welfare Digital Services project, for instance, aims to enhance the management of child welfare information, potentially improving outcomes for vulnerable children. The EDDNext project could streamline processes for unemployment benefits, making it easier for Californians to access support. The California State Payroll System's upgrade is expected to improve payroll processing for state employees, while the Franchise Tax Board's EDR2 project aims to enhance tax system efficiency. However, the state's tenuous budget situation poses a risk to these projects, as continued funding is essential for their completion.
What's Next?
As these projects progress, California's state agencies will likely seek additional funding from the Legislature to ensure their continuation. The success of these projects will depend on effective management and the ability to meet planned milestones. Stakeholders, including state employees and residents, will be closely watching the developments, as these projects have the potential to significantly impact public services. The state will need to balance its budget constraints with the need to invest in these critical IT systems.
