Key Takeaways:
- Washington state’s two biggest technology projects, the workers’ compensation system and the state’s financial systems, are showing signs of life after years of delays and cost overruns.
- The projects have been restarted with new management teams and increased involvement from the state’s IT watchdog, WaTech.
- The state is facing a $16 billion revenue gap, and these projects represent a significant share of the money the state expects to spend on IT infrastructure over the next decade.
- Four of the state’s 10 biggest IT upgrades are considered high-risk, and three others are at moderate risk.
- Lawmakers are cautiously optimistic about the restarts, but are warning that further missed deadlines will be a "line in the sand" for many of them.
Introduction to the Problem
The state of Washington has been struggling with two major technology projects, the workers’ compensation system and the state’s financial systems, which have been plagued by delays and cost overruns. The $292 million workers’ compensation system, which has been in the works for over a decade, was suspended in August due to repeated delays and little progress. Similarly, the $776 million upgrade to the state’s financial systems, known as OneWashington, has been struggling with delays and cost overruns. However, with the recent restart of these projects, there is a renewed sense of optimism that they may finally be back on track.
The Challenges Facing the Projects
The upgrades to the workers’ compensation system and the state’s financial systems are part of a larger effort to modernize the state’s antiquated IT infrastructure. The state’s aging computer systems, some of which are over 40 years old, are expensive to maintain and vulnerable to costly failures. For example, the Department of Labor & Industries (L&I) reported several IT outages last year, resulting in service delays and extra costs. The agency estimated that every hour of "IT system downtime" costs the agency $1.77 million. Replacing these legacy systems has been monumentally difficult, with the state facing an IT labor shortage that intensified during the pandemic.
The Role of WaTech
The state’s IT watchdog, WaTech, has been increasingly involved in the management of these projects. WaTech has been working closely with the Office of Financial Management (OFM) and L&I to ensure that the projects are on track and that the necessary adjustments are being made. Some lawmakers, such as state Sen. Derek Stanford, believe that WaTech’s involvement is crucial to the success of these projects. "The more WaTech can get involved, the better the outcome is likely to be," Stanford said. However, others have questioned WaTech’s capabilities, and some lawmakers are still waiting to see whether these latest resets can actually deliver results.
The Consequences of Failure
The failure of these projects would have significant consequences for the state. The state’s IT infrastructure is critical to the delivery of essential services, and a failure of these systems could result in significant disruptions to these services. Furthermore, the state is facing a $16 billion revenue gap, and the failure of these projects could exacerbate this problem. Lawmakers are warning that further missed deadlines will be a "line in the sand" for many of them. As Sen. Matt Boehnke, a cybersecurity expert and ranking member on the Environment, Energy, and Technology Committee, said, "If WaTech officials now come back, again, and say you need to move that (deadline) back… we’re going to have a lot of questions."
The Path Forward
Despite the challenges facing these projects, there is a sense of optimism that they may finally be back on track. The restart of these projects, combined with the increased involvement of WaTech, has given lawmakers a renewed sense of hope that they may finally be completed successfully. However, lawmakers are also warning that they will be closely monitoring the progress of these projects and will not hesitate to take action if they do not meet their deadlines. As Stanford said, "I think it’s inevitable that we have to move toward a more centralized IT strategy, and have WaTech playing more of a central role in that." Ultimately, the success of these projects will depend on the ability of the state to manage them effectively and to deliver the results that have been promised.