Information Resources Cabinet
Minutes of the January 28, 1997 Meeting
Members Present:
Kim Robak - Lieutenant Governor
Mary deRegnier - University of Nebraska (for Dennis Smith)
Dan Dolan - Dept. of Labor
David Powers - Postsecondary Coordinating Commission
Larry Primeau - Dept. of Administrative Services
Allan Abbott - Dept. of Roads
Berri Balka - Dept. of Revenue
Don Leuenberger - Health & Human Services
Ron Tussing - Nebraska State Patrol
Others Present:
Lyn Heaton - DAS Budget Division
Mary Ann Lapham - CTA, Inc.
Bill Miller - DAS Communications/Central Data Processing
Muriel Shores - Nebraska State Patrol
Judy Egger - Dept. of Corrections
Dennis Summers - DAS Building Division, representing Dept. of Corrections
Jack Falconer - Dept. of Corrections
Linda Salac - HHS Regulation & Licensure
Helen Meeks - HHS Regulation & Licensure
Mark Miller - HHS Regulation & Licensure
Keith Larsen - HHS Finance & Support
Allan Albers - HHS Finance & Support
Monica Seeland - HHS Finance & Support
Stan Cooper - HHS Finance & Support
Bob Shanahan - Dept. of Labor
Wes Mohling - DAS Accounting
Don Herz - DAS Accounting
Steve Henderson - DAS Central Data Processing
Gerry Oligmueller - DAS Budget Division
Steve Shock - Dept. of Education
Howard Boardman - HHS Finance & Support
Bob Luth - HHS Finance & Support
Gary Leypoldt - HHS Finance & Support
Rod Armstrong - State Information Technology Coordinator
Century Date Change - Project Director's Report
Steve Henderson provided a status report on the Century Date Change (CDC) project (see handout for details). An overview was provided of responses from agencies to a request for information about plans to replace rather repair applications to achieve CDC compliance. The IRC had requested this information by December 20, 1996 in order to make decisions regarding potential use of LB 1190 funds for replacement.
The request was sent by Steve Henderson to all agencies, boards and commissions. Responses were received from 20 agencies. Of those, 4 agencies presented requests for funding assistance to replace applications, or to make other modifications to existing agency agreements. Steve Henderson provided a summary and recommendation for each of the 4 agencies, and agency staff were offered an opportunity to present information to the IRC. Lt. Governor Robak asked that all 4 presentations be made prior to discussion and decisions by the IRC.
A proposal was presented to transfer compliance work on several Nebraska State Patrol applications from CTA, Inc. to CDP. The reason for the transfer is that CDP staff were involved in development of the application and are familiar with the Computer-Aided Software Engineering (CASE) tools used during development.
Muriel Shores indicated these applications are mission-critical for the Patrol as well as other agencies involved in the Criminal Justice Information System (CJIS) project. The proposal involves an increase of $64,000 beyond the original agency agreement.
A proposal to replace a nineteen-year-old inmate records system for the Dept. of Corrections was presented. Jack Falconer indicated that the system is vital to departmental operations, and that there are plans to eventually tie the system to law enforcement agencies and possibly the courts.
Lt. Governor Robak asked if there is enough time to complete the additional work in time to achieve CDC compliance. Jack Falconer responded that there is enough time because the CDP staff is already familiar with the application and the tools necessary to complete the work. Steve Henderson expressed confidence in the cost estimate provided by CDP.
Lt. Governor Robak asked what would happen if additional money is not committed to the project by the IRC. Jack Falconer responded that some arrangement would need to be worked out to complete the project.
DAS Accounting presented a proposal to transfer CDC compliance work on the Nebraska Accounting System (NAS) from CTA, Inc. to CDP, and to add additional transaction processing capability. The purpose of this change is to utilize the expertise of CDP staff who will complete work on other changes to NAS by July 1, 1997, which is on time and under budget. The proposed work is not as yet the subject of an interagency agreement, and the total estimated cost is $765,984.
Health and Human Services presented two proposals for replacement alternatives. The first involves the Licensing Information System, used to maintain data on a variety of health professional licensure programs. The second involves the Vital Record Indexing and Statistics program. Both involve migration from the mainframe to PC platform.
Helen Meeks described the business case for the Licensing Information System. The current system is reliable but does not provide the desired functionality from the user's perspective. The proposal would move the system to a PC-based windows environment.
Keith Larsen and Monica Seeland briefly described the Vital Records project. The current system is not CDC compliant, and additional functionality is desired to speed data analysis. Stan Cooper indicated that CDC was forcing faster movement than had been anticipated in upgrading the system.
Lt. Governor Robak asked if the licensing proposal meets the needs of the new Health and Human Services System, specifically how it might address new licensure requirements that may be enacted. Helen Meeks responded that the new system will better position HHS to respond to changes and expand the system as required.
Lt. Governor Robak asked how the cost estimates were developed. Keith Larsen indicated they sought estimates from 2 or 3 vendors. Lt. Governor Robak asked if there was any possibility of federal funds for the projects. Monica Seeland replied that there was not.
Ron Tussing asked if the proposal was beyond the scope of the Century Date Change. Steve Henderson responded that the proposal addresses the CDC issue, and also provides expanded functionality. Lt. Governor Robak pointed out that the intent of LB 1190 is to allow for replacement if it makes sense. Keith Larsen indicated that HHS was only seeking the amount of CDC funds that would otherwise have gone to bring the existing systems into compliance.
Ron Tussing inquired as to why more agencies did not come forward with similar proposals. Rod Armstrong said that some agencies have proposals before the Legislature to fund replacement projects. If they are not successful, they may come to the IRC.
Lt. Governor Robak asked how much cigarette tax money was available for CDC. Gerry Oligmueller responded that $11.4 million over 4 years will be made available. Lt. Governor Robak inquired as to the total cost of the project. Bill Miller indicated that the cost is $22.7 million.
Don Leuenberger asked if the money being sought for the replacement projects was money that would otherwise be spent on CDC. Steve Henderson responded that the dollars in question are those that would otherwise be used for conversion of existing systems to achieve CDC compliance.
Lt. Governor Robak asked if a fee increase might be required to complete the projects. Helen Meeks indicated that fee increases would be avoided if at all possible. Funding may be adequate from a combination of the cigarette tax funds and dollars from license fees that historically have gone to the General Fund but are now being made available to the agency.
On the Vital Statistics project, Stan Cooper indicated that a temporary fee increase to finance an optical imaging project was scheduled to expire in 1999, and that an extension may be necessary.
Allan Abbot asked how much of the $22.7 million is cash funded and who pays. Gerry Oligmueller responded that, based on signed agency agreements, $1.7 million is allocated to Cash Funds, $4.8 million to Federal Funds, $1 million to Revolving Funds, and $9.7 million to General Funds (with cigarette tax funds as replacement). Gerry described the difference between the cigarette tax funds available and the total project cost as more of a financing issue than a shortfall.
Don Leuenberger asked about the timing of project funding. Steve Henderson pointed out that a signed agency agreement is necessary for disbursement of funds, and that a comprehensive project schedule was being prepared.
Mary deRegnier said that business rule changes are the biggest issue, and asked if these were eligible for cigarette tax funding. Steve Henderson indicated that a formal proposal has not come forward from the University, and that one would be necessary to evaluate the response to her question. She indicated that such a proposal would be forthcoming.
Lt. Governor Robak asked if the University's financial and human resources systems were CDC compliant. Mary deRegnier responded that they are not, but that a replacement proposal currently under consideration would solve the problem.
Allan Abbot suggested that the IRC make a two-part decision on the proposals. First, is replacement a viable option, and if so, how should it be paid for. Following discussion, Don Leuenberger moved, and Allan Abbot seconded, that the IRC find each of the proposals meet the established criteria for replacement projects. The motion passed unanimously.
Don Leuenberger then moved, and Allan Abbot seconded, that approval be given to apply dollars otherwise allocated to the Century Date Change for these systems toward replacement, contingent upon better definition of cost estimates and with no decision implied as to the funding mix. The motion passed unanimously.
Allan Abbot suggested that a letter be sent from Steve Henderson to agency directors informing them of the IRC's action on this issue. There was consensus that this would be a good idea, and Steve was asked to do so.
Medicaid Management Information System (MMIS)
Bob Luth and Gary Leypoldt from HHS Finance and Support presented information on requirements for upgrading the MMIS system (see handout for details). One proposal is to hire contractors to convert the current IMS data base to DB2, a relational data base. Lt. Governor Robak asked if money is available in the current budget to finance the project. Gary responded that there is, and that a 90/10 federal match is possible.
Don Leuenberger suggested the issue be deferred until the next IRC meeting, and that a review of other options, including privatization, be undertaken. He said that the system may lend itself to privatization, and volunteered to pull together a group to look at the issue.
Lt. Governor Robak asked whether there was a deadline for making changes to the system. Bob Luth responded that claims processing is the issue, and the federal government has indicated that they will change their system in December, 1997. Failure to respond could lead to an inability to process claims. Lt. Governor Robak asked that a review of activity in other states be included in the review.
Enterprise Goals and Strategies
Rod Armstrong presented a list of project leaders and time frames for the six strategies adopted by the IRC in the December, 1996 action plan (see handout for details).
Other Business
Don Leuenberger described discussions going on at HHS concerning the need for a human resources system. He described a system in use by the University since the early 1980's, and indicated that the University is looking at an upgrade of this system to provide enhanced functionality. He indicated that a demonstration is scheduled for February 12th.
Inquiries were made from several people about changing the date to accommodate more schedules. Don agreed to have staff seek a change in the date, and invitations will be issued to other agencies with an interest.
Lt. Governor Robak asked Bob Luth to head a task group to review this system and other issues related to human resources systems, and to report back at the next meeting.
Next Meeting Date
The next IRC meeting was scheduled for Monday, March 17th at 8:30 a.m. in the Governor's Residence. The meeting adjourned at 11:00 a.m.
meeting minutes