from North Carolina.
Good morning welcome to information technology subcommittee appropriation subcommittee I'm your Chair and host Representative Jacobson thank you very much everyone looking great look like alot of rest representative Toement you're looking at least 30 years old today impeccable. Charging on today our call from J Austin and Monti garson we have one hey thank you very much actually I didn't get my one place may concern you [xx] Representative Steven Ron. Thank you sir for being here. We will look at subcommittee is made up of many of the appropriation of commitee chairman the general technology and their own different areas of expertise so a lot of this will be familiar that we have not dealt this section, these are minutely items that we cover in the other subcommittees. Will we now just look at current technology in this committee. So, first ordered that we need committee rules for minutes records for research division. Thank you Mr. Chair the members of the committee am calling Hossiana seek the story search division, and I'm very briefly going to run over the rules for amendment for this committee meeting today and basically there's follow ups, first of all amendments must be offered by formal amendments. Amendments cannot increase total spending within the proposed committee report and amendments can only appropriations within the department, agencies are programs within the jurisdictions of the Information Technology Committee. And cannot cause the change to another committee's appropriations. Amendments cannot adjust salaries and benefit appropriations for departments, agencies or programs within these committee report, and amendments cannot spend reversions or include shall-not-revert or carry-forward language amendments cannot use non-recurring reductions to fund recurring items, amendments cannot change the recurring or non-recurring designation of funds, amendments cannot change substantive policy or law. Amendments may not fund items with management flexibility reductions, amendments may not affect agency or program transfers to other committees and amendments may not include fees or anything that's related to finance. Any questions about the rules? Seeing none. Although representative Randy does visit high club We don't talk about fight club, that's right, thank you. I like the way you put it, thank you, I don't mean it obviously. Presentation of health and information technology budget, moving on with our agenda. Mr. Shanz recognize seeing you again the presentation that's being passed up to you now. You have the floor. Thank you Mr. Chair. I'm, again, North Carolina preschool research and will be assisted by Miss StellaSticker and Mr. Matt Mynig from bill drafting who are really the subject matter experts when it comes anything legal. Two documents are being handed out to you the first is house appropriation committee on Information Technology Report. This is your report and the second one is proposed session provision for House Bill 97, so you should have both of these documents in front of you. We're going to start with the money reports, turning the page and as at November 1 starting with the information technology reserve. And remember the information technology reserve is a general fund appropriated fund that's to be used for infrastructure and security improvements and requirements. So turning to the first item, information technology planning. This includes $2 million in each year of the biennium so that the chief information officer can complete planning.
Second item is IT modernization, this does a number of things, it provides funding for a number of ongoing projects, it also in first from IT internal service fund which is supported by receipts from state agency to the IT find which is the general fund appropriation thereby reducing the amount of receipts that should need to be collected. Turning the page N2 security. There are increases in security funding in each year of the bianium, about 4.3 million in both years. Department of Revenue security funding is provided for three new positions in the Department of Revenue to improve their ability to provide security during their operations. The next item is an economic modelling initiative and non recurring funding of half a million dollars is provided to support the development of state economic developed modelling capability that will be accomplished by the University of North Carolina at Charlotte. Miss Shaw[sp?] can I interrupt? Last year when the IT Oversight Committee, and the interim [xx] visited UNC Charlotte we got to see some of their data analytics, and so this conversation started with the Budget Chairs that, Hey we had some resources available within state government, within our university system to utilize some of what was already there. So this is put into the budget there I just wanted to speak to that real quick that, Hey this trip these trips are actually worth the time. Representative Torbett. Thank you. [xx] Yes, please. On, N2[sp?] apartment[sp?] [xx] security I can see we're adding three additional positions, is that taking money within the last year or were the big numbers associated with [xx] on the right? This is a special fund. So unless there is a change in the overall requirements in receipt, all of the numbers are captured within the short snappy not in the column, okay continuing the next item is the maintenance management system replacements, and this transfers funding to the department of administration to support the acquisition of new cloud based maintenance management system, the next item for a traditional capability to that maintenance management system, finally $8 million is provided to fund the government that analytic center. And if I seem incoherent, I really I'm at this point, after staying up last night. So turning to page NS in November 4, we're looking at Information Technology Internal Service Fund, this is the fund that provide services to state agencies and that it's supported by receipts, so starting with the first item, there is an adjustment taken for vacant position basically the amount of the requirement in the fund reduced by 1.5 million the requirements within the special provisions, that the positions be reduced by this amount the can position, they have been over 180 days. There is also an adjustment for position transferred as you remember from having to the IT reserve, there are number of positions that has been transferred from the internal service fund to the IT fund so this adjustment reflects that. The next item is for IPS administration then $8 million is provided in those years to support that, IT strategic source thing this is basically their procurement line item and it receives funding of 1.7 million both years that office does to support statewide procurement. The centre for Geographic Information Analysis receives receipts in both years to support their operations, turning to page N5, there's
funding in the second year by [xx] for a bi-annual CGIA, GIF conference provided next item is hosting services and 61.7 million is provided in both years for hosting support for state agencies, network services 98.8 million, again provided by ITF. Business application 5.4 million in both years and then they're list of licensing licensing requirements, and this includes enterprise licensing for work off for S3, and S3 is a GIS System, and if you got to the bottom of the page for staff there's additional funding. Going back to the second item from the bottom there is also funding of $7.8 million each year for a consumer platform services. Turning to page N6 there is another enterprise licensing requirement 5 million in each year to support SAP this is the business requirements license within state agencies. Next item is support services and 275, 000 is provided each year. And finally compliance and transformation there's funding of 3.7 million each year. Turning the page NH we move to the Information Technology fund. This is the fund that is supposed to support the office of the state chief information officer and also provide funding for state-wide projects. So many of the entities included in here work within the office of that state CIO starting on page N8, the first item is the criminal and justice information network and they're maintained with funding of 193000 each year, Center for Geographic Information Analysis receives a small amounts of funding from the IT fund as you noticed most of their funding is in the internal service fund but they receive about 435000 each year, enterprise security risk management office receives funding of 871 000 each year to support their requirements and remember additionally there is standing in the IQ reserve to also provide support for security operations in the state. turning to page N9 7.5 million for staffing and strategic projects, this is for a lot of the new requirement that new state CIO had established about two years ago. Fastnet is next and this provides funding 1.5 million in the first year to support fastnet, and this is a federal effort to develop a state-wide public safety network. One thing I do need to point out is, while there is only funding in the first year, it is my understanding that this particular requirement has now been extended so some this funding may end up being carried forward, or there may be some requirements for adjustment at some point. Next item is the Enterprise Project Management this is the organization responsible for overseeing all of the Information Technology Projects in the State, they're funded at 1.5 million. IT strategy and standards, this is the Enterprise Architecture Office, and they're funded at 865, 000 thousand, next is the state portal, funding is maintained at 233, 000 additionally you'll remember from looking at the IT reserve that there was funding provided to extend application and to extend support for the portal in that particular fund also under IT modernisation. Process management this is a standardisation requirement and 398, 000 in both years, finally on this page there was funding for enterprise licensing of $ 33, 000 of previous years budget no real explanation or need funding for enterprise licensing normally belongs in the internal service fund so that amount has been removed turning to page n IT consolidation 1million is provided to continue IT for addition
efforts and finally in the government data analytic centre 9.1 million is provided to continue the patient that they currently have ongoing, and this concludes the money report. Any questions on the money report Mr Charlton, Representative Cleaveland? I cant into first. The economic modelling initiative at the University of North North Carolina Charlotte could you go into a little bit of depth on that, you know, we have the in-plan, we have Remy, what are we looking for? We'll all start and then you can jump in. It is our understanding that the decision was made not to find Remy and to find this instead? Remy is an adjustable and I'm, not an expert on this, economic modelling system that can be used from the town to the city to the colony to the state, and it's available, it's proven its worthiness and we're going to go build a new economic modelling system? No, Remy is saying software systems that is based on the proposal that was initially put forward would reside at the NBU's for economic modelling. The language that's included in here has to Charlotte using two different departments that has expertise in economics and all the other areas that we might require. And looking at both economic development and economic growth to analyze data and develop whatever is to required by the area state agencies to support whatever efforts they are making to bring business to the state and improve the economy do you want to add to that? Yes representative Cleveland does exactly that and I will supervise for the visualization for the data this is through the data analytic center at I guess I will probably describe this rummy, Hise Tunner on cracker how you it's an incredibly robust model that's it's their could be utilized by just in this particular purposes but for a number rather applications in state government so that's the purpose it does what Remmy would and then. You are speaking as though the system is already in exist ants in here, we saying we are developing the system all develop makers prior application, but the system is in existent. It was never [xx] what we are assured of the camp will be archaeologist committee last year in Vienna. I was switching that is correct Sir you were with us, let it be what it is should write a presentation actually Mr. Sharp[sp?] to just I think you actually left before that presentation so, and in all fairness to you and your, Yes sir, Another question on the government has analytic center by providing recurrent funding of 8 million to support out collections on into and then 9.1 million on page 10. What is the difference between these two months, what're we doing here? Basically it's about 17 million to run the gyduck[sp?] every Year that's the overall cost, and quite frankly about 8 million of that is licencing requirement, so what's been done in past years, is funding's been probably together, usually for non recurring sources, to provide the necessary funding to keep it up operating and so what this is intended to is establish recurring funding for the operation of the center any other questions moving on Mr. Charleson I'm sorry resume Willingham[sp?].
Thank you, I wasn't here last year but I'm just curious and the money in this budget here does take into consideration all the use with the question purchase I guess for human services we've been having so much problems which for I mean is that included in here or is that something separate? It's not all Mr. Charlson but it's the dancers know and that's only the fundamental budget for entertainment service for cheap probably have a little better explanation to your question. Mr. Shaffie. What this committee is looking at is basically statewide initiative or also areas where an issue has been identified but at the same time members of the committee and staff do maintain awareness of what's going on on the other committees and are aware of what projects are going on in the various departments. Do you have a question about it? Fully I think I understand we also have act oversight that meets in the [xx] that does a lot deeper review and insight to some of these projects that we have [xx] gentleman can take him [xx] just like the legislative house of the senate to look out into this issue like you spoke out so. Thank you any other comment before we move with the agenda, say none Mr [xx] okay, we move on to special provision, which is the second document you received, and I'll be ably assisted by Miss Picket and Mr. Minig[sp?] would you all like to join me? [xx] Okay, moving right along then if you would turn to page one, what I will do since we don't have sections captured yet, is I'll refer to the numbers listed for each special provision, so in this case on page one I'm looking at 2015-IT -H1A or basically H1A, information technology fund and basically follows the money which we've just gone through, so it reflects what you saw in the money report there is also a requirement that funds included in the IT funder to be spent only as specified unless the office of state budget management proves a change. Looking at the bottom of page 1 H2, this is the IT internal service fund again spoils some money, there's also, in section B on page two cap put on receipts are $185 million each year now where there's a cap if ITF has requirements to exceed the cap they can come to the joint legislative commission on governmental operations and have that cap raised, so this shouldn't restrict their operations if there are requirements for further receipts. Section C goes back against the money reports, Section D creates a new requirement. What this does is ensure that funds collected by ITF for the specific purpose of refreshing equipment like computers, servers, mainframes is actually maintained in a separate account and is used for the purpose for which it was collected and that that's clearly understood. Section E requires a state chief information officer to establish rates by October. Section F requires that billings and payments be understandable and transparent. It also allows first preempt to transfer funds if an agency fails to pay their bill. Section G requires that if the IT Internal Service Fund is used for anything that's not specific to the operation of the office of Information Technology Services, it has to be immediately reported to OSPM and Cisco Research. Section H allows The Director of The Budget to
look at how much agencies are spending that they have for short services, in other words that they have to pay for the services provided by ITF. And if the director determines that the funds that an agency has been appropriated exceed their needs in that particular area, that those funds can be reallocated to other agencies, in the event that they receive insufficient funds. Continue. [xx] on page 3 Information Technology Reserve, again this follows the money. And, also breaks out the specific requirements for transfer to other agencies. There are three positions to the Department of Revenue and funds to the Department of Administration for the maintenance management system. Again there is a requirement that funding in this section be spent only if the appropriate created a [xx], a change is approved by the state's CIO after consultation with our OSPM, and there is also a requirement that the OSPM establish a funds code for the IT reserve and manage it separately. Continue on page 4 H4 Information Technology Architecture, this requires the state chief information officer to develop an architecture by Janauary 15th, 2016 on the same page, H5 Information Technology Security, this particular provision broadens the respond st abilities of the state chief information officer, with regards to security and the executive branch, and those in terms of the infrastructure and in terms of data. Turning to page five, excuse me.information Technology Project Management, it gives the state's CIOs specific authorities for ensuring that projects are completed as they reported by the agency in terms of being completed on time within budget that type of thing, and requires state CIO to establish processes to implement this. Turning to the bottom of page five, H7 Information Technology Procurement, this requires, thank you very much, state information Technology Procurement within the executive branch, be conducted through the Office of the State Chief Information Officer, requires the CIO to establish policies accomplish this and requires OSPM to not fund IQ procurements that are not authorized by the state's CIO, and also requires report to IT Oversight in the event that a state agency fails to conduct IT procurement as required by this section. On page six, HH, looking at state agencies this requires the state CIO to establish consistent standards for the purchase of hardware and software within the state that considers agency needs. Again on page six, H9, data canters and consolidation. This requires the state CIO to develop and implement a detailed written plan for consolidation of agency data centers, and less specific requirements, all so with the exceptions that state agencies can use. Turning to page seven H10 IT human resources. The state CIO is required to develop an inventory of state IT personnel that includes, who's currently on staff, those within ITF, and across state agencies, and also look at documenting current personnel requirements for IT and then doing gap analysis, and then coming up with a plan to adjust your current requirement to what you currently have on hand, and this is to be completed by December 1st 2013 and reported to IPO oversight, there's also a requirement that the state CIO establish standard IT tech career paths, for the management, and a technical track and also there is a career path established for IT procurement finally section D, this language allows the state CIO with written permission from another agency head to move
people from one agency to another to support specific requirements, so basically cross level when a requirement exists. Continuing on page 7, H11 IT performance measures. This requires the establishment of specific quantifiable performance measures for every function performed by the office of Information Technology Services and the office of the state CIO, that these performance measures be posted on their websites and that they be updated on a monthly basis. Turning to page 8, this establishes requirements for the state CIO to accomplish to improve governance in the state also on page eight H14 electronic signatures this requires a state CIO to implement a digital form program for state agency that includes secure electronic signature and to provide a plan to IT oversight by October 1st. Page nine H15 this calls the money and this is a special provision that discusses the economic modelling initiative with the University of North Carolina, Charlotte. Finally on page nine H17 this provision requires the State CIO to monitor state agency compliance with directives form the general assembly and to notify the head of any agency that's not in compliance with these directives and it also requires this non compliance to be reported IT oversight and that completes the review of the special provisions Famous chance members of the committee do we have any questions or special permission seeing none the other discussion for the committee that being the case we have no amendment so we will stand adjured, thank you so much for your time, happy budgeting. I'm sorry you are correct here we go make sure you pay attention we have motion by representative Torbertt and seconded by representative Bob to approve the [xx] and move on. All those in favor signify by saying Aye. Aye. Those opposed Nay is fine, the motion stands approved, and we stand adjourned. Thank you very much.