Gov. Schwarzenegger Issues Statement on Senate Budget Committee's Vote in Support of Governor's Reorganization Plan

May 6, 2009

Governor Arnold Schwarzenegger issued the following statement today after the Senate Budget Committee voted 34-0 in support of the Governor's Reorganization Plan (GRP) which, if allowed to take effect, will consolidate statewide information technology (IT) functions under the Office of the Chief Information Officer (OCIO):

"At a time when California families and businesses are cutting back and tightening their belts, state government must do the same - we have a responsibility to ensure that government is operating efficiently. This is why my Administration has proposed this important plan to help us consolidate things like software contracts, networks, servers and data centers across the state, resulting in better coordination, increased efficiency and an overall reduction in costs to taxpayers," said Governor Schwarzenegger. "We have a unique opportunity to improve government operations while at the same time enhancing services for every Californian. I appreciate legislators' support and look forward to working with them as we improve our technology infrastructure in the Golden State."

The GRP is based on a recent Little Hoover Commission report that proposed realigning IT resources, including the Department of Technology Services (DTS) under the leadership of the OCIO, to enhance efficiency and bolster performance. The reorganization will create more accountability and provide a framework to enhance the IT workforce that supports the computer systems, among other things. It is estimated to achieve a cost savings and cost avoidance of $1.5 billion.

Specifically, the GRP proposes to:

  • Integrate four agencies - the OCIO, Office of Information Security and Privacy Protection (Office of Information Security), DTS and Department of General Services' Telecommunications Division - into an expanded OCIO.
  • Provide the State Chief Information Officer with authority for IT procurement policy and enterprise IT management.
  • Achieve consolidation of software contracts, office automation tools, data centers/computer rooms, servers, storage and networks over the course of five years.
  • Preserve program-specific IT systems and budgets at the agency level.

The GRP will take effect on May 10, 2009, unless either house of the legislature takes up a negative resolution to reject it.

To more effectively oversee information technology in state government, the Governor signed SB 90 in August of 2007 to establish the OCIO as a cabinet-level agency with statutory authority over IT policy. The office establishes and enforces IT strategic plans, policies, standards and enterprise architecture, as well as approves information technology projects for all state departments.