Overview
As covered in the IT Capital Investment Management section of this report, many EOTSS programs and projects are funded through the IT capital plan – which is included in the Governor’s annual Capital Investment Plan (CIP).
However, the secretariat also receives funding through the General Appropriations Act (GAA) each fiscal year, as well as via an interagency chargeback model. Federal grant funding may also be made available to EOTSS in certain years (e.g. the pending federal Cybersecurity Grant Program for state and local governments that was included in the Infrastructure Investment and Jobs Act).
GAA funding and chargeback revenue fund daily cybersecurity and IT operations and services that benefit agencies across the enterprise – not just EOTSS. New maintenance and operating costs generated by capital investments are also sustained and “operationalized” through these funding sources to ensure their long-term viability.
FY22 EOTSS General Appropriations Summary
Below, please find a summary of EOTSS current appropriations, as signed by Governor Baker on July 16, 2021 in the FY22 General Appropriations Act.
Budgetary Recommendations |
|
$50,056,559.00 |
|---|---|---|
| 1790-0100 | Executive Office of Technology Services and Security | 3,105,778.00 |
| 1790-0300 | Technology Shared Services for the Public | 2,733,931.00 |
| 1790-1700 | Core Technology Services and Security | 44,216,850.00 |
Intergovernmental Service Spending |
|
$146,475,223.00 |
|---|---|---|
| 1790-0200 | Technology Shared Services Chargeback | 75,836,100.00 |
| 1790-0201 | Technology Pass Through Chargeback | 30,000,000.00 |
| 1790-0400 | Print and Mail Services Chargeback | 2,904,232.00 |
| 1790-1701 | Core Technology Services and Security Chargeback | 37,734,891.00 |
Supporting the Commonwealth’s hybrid workforce and maintaining continuity of government operations throughout the ongoing COVID-19 pandemic continued to be top priorities for EOTSS in FY22. The agency also maintained focus on funding for programs and initiatives related to technology modernization and cybersecurity enhancements across the Commonwealth as part of the EOTSS Standard Operating Environment (SOE) rollout. Read more for a detailed summary of the EOTSS annual operating budget and line-item language included in the FY22 GAA .
Most of these programs are highlighted in earlier sections of this report, such as:
Unified Security Operations Center (SOC) costs
Further implementation of the Security Incident Event Management (SIEM) software platform across the Commonwealth
Deployment of modern workplace single-device platform throughout the Executive Branch
Continued migration of applications and infrastructure out of state data centers and into Cloud, 3rd party on-premise, and SaaS hosting solutions
IT Strategy Services to agencies
Business Intelligence and Data Analytics support for agencies
Added capacity for the EOTSS centralized software and IT contract compliance program
Modest FY22 funding increases also included:
$2.9M for Service Now enhancements to further build out of IT service management (ITSM) platform across the enterprise.
$1.4M for cloud hosting and maintenance costs such as Commonwealth Information Warehouse (CIW), EOHHS Virtual Gateway, Mass GIS, MoveIT, and several HHS programs
$348,000 for operationalization of AlertsMA capital investments
$240,000 for Adobe Sign enterprise licenses to facilitate hybrid workforce model
EOTSS Chargeback Model
EOTSS is authorized by the Legislature to chargeback agencies/entities for services provided. EOTSS operates under a "cost-recovery" model and uses a "chargeback methodology" to recover its expenses.
Anticipated expenses are recovered through monthly billings. Expenses recovered can include (but are not limited to):
EOTSS direct labor support
Hardware and software maintenance
Vendor management costs
Equipment leases/TELP's (if applicable)
Massachusetts Information Technology Center (MITC) rent
Use the following links to download a more detailed FY22 Chargeback Rate Schedule for the EOTSS Chargeback Model.
In FY22, EOTSS leadership kicked off a new project aimed at reviewing and updating its chargeback model and methodology. This project—coupled with the broader customer engagement initiative—seeks to improve customer service and fulfillment through improved cost transparency, greater insight into product & service offerings, and a revamped approach to ensuring customer success.
Looking Ahead to FY23
While the budget for the next fiscal year has not yet been finalized, you can read more about the Baker-Polito Administration’s FY23 budget recommendations for EOTSS.
The H2 budget request includes a 9% increase over FY22 spending (exclusive of chargeback cap space) to $164.8M in total proposed spending for FY23. Most of this increase represents the operationalization from capital of programmatic cybersecurity investments and cloud hosting and management costs that are fundamental to the EOTSS enterprise mission and scope.
This request continues the tradition of annualizing the programmatic functions and operating costs associated with capital investments that are not always incorporated into the baseline EOTSS operating budget. A reliance on capital funding creates uncertainty in the sustainability of individual programs from year to year and obscures the true annualized costs of providing essential IT and security services for the entire Executive Branch.
| Date published: | May 10, 2022 |
|---|---|
| Last updated: | May 10, 2022 |