California May Postpone IT Upgrade

SACRAMENTO, Calif. -- Facing record deficits and the need to cut popular programs throughout the state, a computer replacement project that could cost up to $662 million over nine years has been put hold. The project would replace systems in the state 23 state universities with a "Common Management System."

The call for reconsideration of the project came from two Democratic legislators -- Sen. Richard Alarcon and Assembly Member Manny Diaz who requested that, rather than spending funds on technology, the money be used to restore academic programs that were on the cutting room floor.

The immediate request was to re-allocate $50 million of the $90 million slated to be spent on the technology upgrade this year and also to put the entire project on hold until legislators have an opportunity to learn more about the Common Management System that would run on PeopleSoft applications.