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HF 4808

Human Services Systems Modernization Advisory Council and a Legislative Commission on Human Services Systems created, modernization fund and eligible uses established, reports required, money transferred, and money appropriated.

2025-2026 Regular Session Introduced by Mohamud Noor and 3 co-sponsors

Establishes a dedicated IT Modernization Account funded from surplus, plus a Keystone fund and a mandatory plan to modernize or replace outdated state and local government IT syste

Author added Noor
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Bill Summary · HF 4808

Summary of HF 4808 (2025-2026) — Information Technology Modernization Account and Related Provisions

Purpose and intent

HF 4808 seeks to establish a dedicated Information Technology Modernization Account within state law, allocate general fund surplus dollars to this account, require a formal modernization plan, and authorize a one-time transfer to support technology obsolescence reduction. The overarching goal is to modernize and replace outdated information technology infrastructure and systems used by the state and by local units of government administering state programs.

Key provisions

  • Establishment and funding framework for IT modernization

    • Creates a new Information Technology Modernization Account with the aim of funding modernization or replacement of outdated IT infrastructure.
    • Establishes a related mechanism to allocate general fund surplus dollars to this account, subject to statutory priority rules for surplus allocations.
    • Integrates the account into the broader framework of the state’s technology obsolescence reduction efforts (keystone account under the special revenue fund).

  • Priority order for use of surplus/general fund balances (Section 1)
    When the commissioner of management and budget forecasts a positive unrestricted budgetary general fund balance at the end of the biennium, the following priorities apply, in order:

    1. Cash flow account until it reaches $350,000,000.
    2. Budget reserve account until it reaches $2,852,098,000.
    3. Increase school district aid payments (to up to 90% of the aid/credits payment schedule, subject to available funds).
    4. Restore all or part of net aid reductions and adjust the property tax revenue recognition shift as needed.
    5. Technology obsolescence reduction keystone account until it reaches $80,000,000.
    6. Amounts needed to meet these requirements are appropriated from the general fund within two weeks after forecast release (or as otherwise scheduled).

  • Impact on school finance and property taxes (Section 1)

    • The forecasted surplus reductions identified in items (3) and (4) are certified to the Commissioner of Education, who must adjust the school aid payment percentage and the property tax shift percentage accordingly for the current and future fiscal years.

  • Technology Obsolescence Reduction Keystone Account (Section 2)

    • Establishes the Keystone account in the Special Revenue Fund.
    • Money in this account may be appropriated to fund modernization or replacement of outdated IT infrastructure and systems used by the state or local units of government to administer state programs.

  • Mandatory IT modernization plan (Section 3)

    • By February 1, 2027, the Commissioner of Minnesota Information Technology Services must submit an Information Technology Modernization Plan.
    • The plan must be shared with the chairs and ranking minority members of relevant legislative committees, detailing:
    • IT infrastructure and systems most in need of modernization/replacement (with emphasis on local government systems serving state programs).
    • Estimated costs and the recommended approach (modernize vs. replace) for each project.

  • One-time transfer (Section 4)

    • A onetime transfer of $30,000,000 from the general fund to the technology obsolescence reduction keystone account in FY 2027.

Affected entities

  • State government IT operations: Modernization and replacement of outdated IT systems and infrastructure.
  • Local units of government: Systems administered to implement state programs, prioritized in planning.
  • General fund and statutory accounts: Impacts on cash flow, budget reserve, school aid modifications, property tax shifts, and the Keystone account allocations.
  • Legislature and oversight committees: Requirements for a modernization plan and ongoing reporting/coordination.

Procedural and timeline notes

  • The bill was introduced and referred to the Ways and Means committee (as of April 7, 2026).
  • A comprehensive IT Modernization Plan is due no later than February 1, 2027.
  • A one-time transfer of $30 million is authorized in FY 2027 to the Keystone account.
  • The plan and allocations hinge on surplus forecasts and statutory priority rules for general fund balances.

Potential impact

  • Provides dedicated funding and a structured pathway for modernizing Minnesota’s IT landscape, potentially reducing costs tied to obsolete systems and improving service delivery for state and local government programs.
  • Encourages proactive planning with a formal modernization roadmap and accountability through legislative review.
  • Creates a mechanism to balance financial priorities (cash flow, reserves, education funding, tax policy) with strategic investments in technology.

Compiled from official sources — confirm details with the bill’s official record.

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