COMPUTERS; INFORMATION TECHNOLOGY, DEPT.; INTERNET;

INFORMATION TECHNOLOGY, DEPT.;

You asked for a description of the responsibilities and organizational structure of the Department of Information Technology (DOIT) and a discussion of recent developments at the department. Much of the information in this report is taken from the department’s Website, http: //www. ct. gov/doit/site/default. asp.

SUMMARY

DOIT is statutorily responsible for a wide range of information technology functions. These include (1) the development of state agency information technology policies; (2) the development of comprehensive standards and planning guidelines for information technology systems; (3) the approval of state agency acquisition of hardware and software and consultant contracts; (4) leasing, purchasing, and contracting for information system and telecommunications facilities for most state agencies; and (5) processing all state agency telecommunications bills. In addition, DOIT also administers the state’s Internet portal (http: //www. ct. gov) and provides training to state agencies.

DOIT has three divisions: Customer Relations, Operations, and Business Development. In addition, DOIT’s Office of the Chief Information Officer (CIO) consists of the CIO, Chief of Staff, Chief Technology Officer, and Business Office.

In recent years, DOIT has (1) begun consolidating the state’s information technology (IT) services, (2) taken steps to comply with the federal Health Insurance Portability and Accountability Act, (3) helped develop the Connecticut Education Network, (4) begun implementing the Core-CT project, which will upgrade and integrate the state’s core financial and human resources management systems, (5) begun work on the Integrated Tax Administration System and (6) launched the state’s Internet portal.

Funding for DOIT is provided through General Fund appropriations, bond funds and revolving funds. For FY 04 DOIT has 17 permanent full-time positions authorized and funded through the General Fund as well as 256 permanent full-time authorized positions funded through the Technical Services Revolving Fund.

DEPARTMENT OF INFORMATION TECHNOLOGY RESPONSIBILITIES

The statutes assign a wide range of information technology responsibilities to DOIT and its CIO. Among other things, the law requires the CIO to:

1. develop and implement an integrated set of policies pertaining to information and technology systems for state agencies;

2. identify and implement systems to meet the needs for information and technology systems of state agencies, and identify ways of reducing the costs of such systems;

3. develop comprehensive standards and planning guidelines for the development, acquisition, implementation, oversight, and management of such systems;

4. approve or disapprove, with certain exceptions, agency acquisition of hardware and software;

5. approve or disapprove agency contracts for consultants for information and technology systems;

6. be responsible for leasing, purchasing, and contracting for information system and telecommunications facilities for all state agencies, other than the constitutional officers;

7. review existing and new technologies to ensure consistency with the state’s strategic information technology plan (CGS § 4d-2).

The CIO is also responsible for purchasing, leasing, and contracting for all telecommunications facilities and services for the statewide agency telecommunications infrastructure. He is responsible for processing all state agency telecommunications bills, including services provided at the request of agencies to state-funded non-profit agencies and political subdivisions of the state CGS § 4d-5.

The CIO must also develop and annually update an information and telecommunications strategic plan. Among other things, plan must (1) establish guidelines for the architecture for state agency information and telecommunications systems, (2) contain plans for a cost-effective statewide telecommunications network, (3) identify annual expenses and major capital commitments for information and telecommunications systems, and (4) identify ways of introducing new technologies into these systems CGS § 4d-8.

In addition to these statutory mandates, DOIT administers the state’s Internet portal. The portal’s on-line services section provides links to more than 46 state government services, including on-line income tax filing, business license renewal, and complaint filing. The portal’s reading room links to more than 1,000 online publications and fact sheets produced throughout state government. The publications cover topics ranging from gardening and auto leasing to financial planning and playground safety. Another section provides answers to 50 frequently asked questions, such as how to get a birth certificate or obtain voter registration forms.

DOIT also contracts with vendors to provide training in a wide variety of technical topics. Training can take the form of (1) specific computer courses taken at the vendor’s facility or on-site, (2) customized curriculum and course development, and (3) on-line courses and programs. The training is offered to state, federal, and local government agencies and political sub-divisions at substantial discounts from the public prices on the vendors' web pages.

ORGANIZATIONAL STRUCTURE

DOIT has three divisions: Customer Relations, Operations, and Business Development. In addition, DOIT’s Office of the Chief Information Officer consists of the CIO, Chief of Staff, Chief Technology Officer, and Business Office. The office manages business and administrative operations for the department. It includes cross-divisional teams dealing with security, disaster recovery, and operational continuity.

The Operations Division provides several services to DOIT and its client agencies, including computer operations, network management and Internet services. It runs DOIT’s Data Center. The Customer Relations Division focuses on meeting customer needs, from end user support to agency planning. It includes the Help Desk, End User Support, Customer Relationship Management, and the Enterprise Program Management Office which tracks and monitors information technology projects statewide. The Business Development Division focuses on enterprise-wide needs and developing the solutions to meet them. It enforces and refines the technology architecture to which these products and solutions must adhere.

RECENT DEVELOPMENTS

Consolidation of IT Services

In 2000 DOIT began the process of consolidating the state’s information technology (IT) services. In July 2000 58 IT manager positions from 26 state agencies were consolidated into DOIT. The next stage will begin with the transition of the remaining IT workforce from agencies affected by the consolidation to DOIT and end with the consolidation of necessary systems, equipment, and assets. After integration and transitioning of staff into DOIT, it is anticipated that the state will realize cost efficiencies of approximately $ 2. 4 million over the 2003-2005 biennium.

The Technical Services Revolving Fund in DOIT is a non-appropriated Internal Service Fund, which receives most of its moneys from charges made to state agencies that utilize the department’s IT and computer services. The fund is used to support the State Data Center, to obtain IT services through private vendors through master contracts, and to operate and manage the centralization of executive branch IT personnel and systems.

It should be noted that the executive branch is in the midst of consolidating most of its IT services and personnel in this revolving fund. The fund has 256 positions authorized and about $ 80 million anticipated in business for FY 04.

Health Insurance Portability & Accountability Act

Health Insurance Portability & Accountability Act (HIPAA) is a federally mandated requirement on the electronic storage and handling of healthcare information. The federal government has not yet determined some specific requirements. Other than a 90% reimbursement for direct costs to the DSS’ Medicaid Management Information System, all costs are to be borne by the state. However, Congress might be seeking additional federal moneys due to the program’s significant costs. DOIT is coordinating and managing the state’s compliance efforts.

The primary goals of HIPAA are (1) to establish electronic health transactions standards and code sets, (2) protect patient privacy and confidentiality, (3) promote security of health information and electronic signature standards, and (4) establish unique identifiers for providers, employers and health plans. While much of the efforts are for computer systems modifications, significant attention will be given to training state medical providers and administrative personnel in the new security and privacy procedures and standards.

Originally, $ 2,352,213 was provided in FY 02 from FY 01 surplus funds, but this amount was reduced to $ 1. 5 million in the November 2001 Special Session. PA 02-1 May Special Session (MSS) provided an additional $ 1. 9 million for implementation and compliance of HIPAA requirements for FY 03.

Section 2(b)(1) of SA 02-1, MSS, provided for $ 20 million in bonding for the Health Insurance Portability and Accountability Act (HIPAA) project. Of this amount, $ 19. 24 million is budgeted for a consultant, $ 560,000 for software and implementation, and $ 200,000 for hardware.

In addition to the funding described above, Section 105 of PA 02-7, May 9th Special Session, requires that any reimbursement received for expenditures by DOIT related to HIPAA is to be deposited in a non-lapsing account and available for DOIT for implementation of HIPAA for FY 02, FY 03 and FY 04. These funds may be transferred to other state agencies for purposes of HIPAA.

At this time, the program must be completed and in place by the end of calendar year 2003, although Congress may extend the deadline. Compliance with HIPAA is still in the planning stages and the full cost is not known. However, the cost is expected to be significant in future fiscal years.

Currently, there are 11 state agencies affected by HIPAA requirements. They are the departments of Administrative Services, Social Services (including HUSKY), Children and Families, Mental Health and Addiction Services, Public Health, and Veterans Affairs, the Teachers’ Retirement Board, Correctional Managed Health Care, the University of Connecticut and the UCONN Health Center.

Connecticut Education Network

The Connecticut Education Network will link every local school system with every public library and private and public university in the state. The broad goals of the Connecticut Education Network are to (1) significantly improve teaching and learning, (2) improve the state’s workforce competitiveness by supporting the state’s IT infrastructure, (3) reduce the divide between the rich and the poor, and (4) promote efficiencies through economies of scale.

Recent highlights of the project include the deployment of the network linking 1,100 K-12 schools, the state’s 350 libraries, and over 100 college and university campuses. There are now 56 sites using the Connecticut Education Network including Hartford Public Schools.

Each local school system is responsible for connecting all of its schools to the one site that is connected to the state network. Most of this local work has been funded by the school-wiring project and is complete. There are also funds available through a telephone bill surcharge that requires local matching funds known popularly as E-Rate. The Schools and Libraries Universal Service Fund, known as the “E-Rate,” was created as part of the Telecommunications Act of 1996 to ensure that all eligible schools and libraries in the United States have affordable access to modem telecommunications and information services. It is funded through the Universal Service Fund, which is explained later on.

Section 2(b)(2) of SA 02-1, May 9th Special Session, provides for $ 10 million in bonding for Connecticut Education Network project. This is in addition to FY 01 surplus funds of about $ 2. 1 million and $ 4. 5 million in new bonding authorization. This amount was allocated on January 25, 2002. Another $ 30 million has been provided for wiring schools in FY 03. Also provided for this project were about $ 2. 8 million from carry forwards from the FY 00 Surplus. It will take at least another $ 20 million in bond funds to complete the network.

The breakdown of expenditures for the $ 10 million (Phases I and II) for Education Technology and future funding requirements (Phases III ad IV) is presented in Table 1. The life of the bonds must match the term of the leases.

In addition to the funding described above, Section 105 of PA 02-7, May 9th Special Session, requires that any reimbursement received for expenditures by DOIT related to the CT Education Network is to be deposited in a non-lapsing account and available for DOIT for supporting the network. These funds may be transferred to other state agencies for purposes of the CT Education Network.

Core-CT

The Department of Information Technology is responsible for post production support of the Comptroller’s Core-Ct project. HB 6902 of the September 8th Special Session provides an additional $ 24 million in FY 04 and $ 7 million in FY 05 for the Core-CT project, which is funded through the Comptroller's Office.

The goal of the Comptroller and this project is to upgrade and integrate the state's core financial and personnel/human resources management systems. It will also provide a data warehouse to allow the analysis and reporting of financial, personnel and program information on a statewide basis. All state agencies are involved in the planning and implementation processes. The total cost of the project is now estimated at $ 110. 5 million, of which $ . 5 million is from the FY 00 surplus, $ 50 million is from SA 01-2 bond funds, $ 25 million is authorized by SA 02-1, $ 31 million is authorized by HB 6902 of the September 8 Special Session for FY 04-05

The estimated cost of the project has increased by $ 33 million (or 43%) since FY 02. This is primarily due to (1) the decision to include additional functions in the scope of the project, (2) the inclusion of some state agencies not originally thought to be in scope, and (3) substantial software modifications due to multiple collective bargaining unit employee benefits provisions.

The implementation of the Core-CT system is scheduled for completion by October 2004, as described in Table 2. Implementation will be conducted in two phases for both the financial and the personnel systems. Completion dates for financial systems are July 2003 and October 2004. Completion dates for personnel systems are October 2003 and July 2004. See the tables below for completion dates for each phase.

Table 2: Implementation Schedule Core-CT System

FINANCIAL FUNCTIONS

Phase 1: July 2003(1) Phase 2: October 2004

General Ledger Projects and Grants

Accounts Payable Billing

Accounts Receivable Contract Administration

Purchasing Asset Management

e-Procurement Inventory

Data Warehouse

PERSONNEL FUNCTIONS

Phase 1: October 2003 Phase 2: July 2004

Hire and Maintain Workforce Labor Relations

Manage Job Classifications Training

Meet Statutory Requirements Plan Successions

Administer Salary Plans Career Management

Monitor Health and Safety Competencies

Selection and Recruitment e-Benefits

Workers’ Compensation e-Payroll

Exam Process/Reemployment e-SelfServe

Payroll e-Profile

Time and Attendance

Benefits Administration

e-Recruitment

Data Warehouse

(1) Phase 1 of the financials module was implemented on July 8th.

Integrated Tax Administration System (ITAS)

HB 6902 of the September Special Session authorizes $ 20. 1 million in each of FY 04 and FY 05 for the continued development of ITAS for the Department of Revenue Services. These funds will be used to implement the remaining phases of the agency’s computerized data processing system that administers the state's tax system. Phase 1, which was finance with $ 18. 85 million in GO bonds, focused on taxpayer registration, return processing, taxpayer accounting and revenue accounting for the Sales and Use, Corporation, and Withholding Taxes. DOIT is a supporting agency in this project.

The next phases will include: (1) integration of the remaining tax sources; (2) development of a data warehouse; and (3) enhancements to revenue collection and enforcement. ITAS is expected to result in $ 43 million in enhanced revenue collections in FY 05, primarily from the Sales and Use, Corporation, and Withholding Taxes.

Internet Portal

In January 2003, DOIT launched the state’s new Internet portal. The portal provides access to over 300,000 individual Webpages produced by 60 agencies. DOIT has worked with state agencies to make it easier for them to load more information, publications, and services online making it easier for citizens to use.

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