New Mexico facing expensive delays rolling out IT upgrades for state agencies

New Mexico facing expensive delays rolling out IT upgrades for state agencies

SANTA FE, N.M. (KRQE) – New Mexico has been in the midst of long and expensive information technology (IT) upgrades for several state agencies. But delays abound, according to a recent report.

A report from the Legislative Finance Committee (LFC) shows that delays are costing millions of dollars. The good news, for the state, is that much of the increases will be covered by federal funds.


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The state’s Children, Youth and Families Department (CYFD) has been working on replacing its automated client tracking system. That was supposed to be complete by 2023. But now, the expected date is in late 2025 or early 2026. The estimated cost went from $45 million to $82 million, much of which will be covered by federal funds, the LFC says.

An even larger project, a replacement for the state’s Medicaid management information system, has also been delayed, the LFC says. The federal government has put more than $331 million towards the project, but now the project cost has increased by more than $28 million, “posing substantial risk” to the project, the LFC says.


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While the state is dealing with some serious delays, technology projects are moving forward. Soon, New Mexico will have electronic health records (instead of paper copies) for the Corrections Department, for example. And a some law enforcement agencies have already connected to the new statewide computer-aided dispatch system.