Legislative Analyst Suggests Questions for Lawmakers Weighing CDT Realignment

A state Assembly subcommittee will gather Tuesday to examine Gov. Gavin Newsom’s plan to create a new state Office of Digital Innovation, which could under some scenarios redraw the state’s IT governance and procurement practices.

And just in time for that hearing, the state Legislative Analyst’s Office (LAO) published a report Friday afternoon that examines the knowns and unknowns of Newsom’s plan and addresses its possible implications on his proposed state budget. The report also suggests questions and issues that members of Budget Subcommittee No. 4 on State Administration may want to pose to representatives of key departments at the hearing.

LAO’s Issues for Legislative Consideration

• Define the roles of CDT and ODI to avoid duplication.
• Consider implications of new requirements for state departments.
• Judge how departments would be chosen as candidates for digital innovation and where the funds for that innovation come from — ODI, CDT or the agencies themselves.
• Evaluate centralized state IT staffing through GovOps.

The ODI, along with an innovation academy that Newsom wants all state government executives, supervisors and managers to attend, would reside under the Government Operations Agency (GovOps). It would have a startup budget of $36.2 million, would employ 50 people and would have an annual budget of $14.6 million. It would be allowed to procure goods and services under Public Contract Code 6611, which allows negotiation with vendors.  

Since Newsom first announced the new ODI under GovOps, industry and government figures alike have remarked on the apparent duplication between it and CDT’s existing Office of Digital Innovation, one of eight offices within CDT, all of which are led by state CIO Amy Tong and state Deputy CIO Chris Cruz. The current functions of CDT are:

• Deliver technology-related services to departments;
• Provide IT project approval and oversight;
• Develop and deliver workforce and leadership training; and
• Initiate innovation efforts, such as state government open-data portals

Under Newsom’s proposal, the new ODI would:

• Select and work with state departments to “re-engineer” their business practices, making them as efficient and cost-effective as possible;
• Create a new Innovation Academy (separate from CDT’s existing Digital Services Innovation Academy) for state government executives and managers, with attendance mandatory, that would focus on such workplace ideals as change management and continuous improvement.
• Develop guidance, policies and procedures on statewide delivery of digital services.

The report notes: “The administration anticipates that, if the proposal is approved, CDT would retain its broad authority over all aspects of technology in state government. By comparison, ODI would develop and implement statewide guidelines, policies and procedures on the delivery of digital services statewide.”

The report addresses the duplication question directly: “It is the intent of the administration to avoid duplication of efforts between ODI and CDT. However, to avoid duplication, there may be a need to change some of the responsibilities and functions currently at CDT. …”

The LAO report then makes two suggestions to committee members: “Ask the administration to explain the rationale for creating a new office within GovOps, rather than giving additional funding and positions to CDT for this purpose,” and ask the administration how it will ensure that there’s no duplication of efforts between ODI and CDT. 

As a key agency within state government, GovOps wields clout across a range of functions and oversees such critical departments as tax agencies, pension systems and the Department of General Services, the state's business agent. GovOps Agency Secretary Marybel Batjer has also been assigned by Newsom to head a Strike Force investigating the ongoing problems within the Department of Motor Vehicles. GovOps also oversees the state's participation in the federal 2020 Census.  

Tuesday's subcommittee hearing begins at 1:30 p.m. in Room 447 at the State Capitol, and the public may listen to it here. The agenda can be found here; the section pertaining to CDT and ODI begins on Page 39.