1. 1 UI Tax Modernization - Amendment November 17th 2010 Project Change: Scope // Budget // Schedule PCC Certification: Initiation & Planning Phase Amend UI Tax Project to include UI Claims module Request approval for release of funds: $3,079,906 Planning Phase

2. Project Abstract In 2009, the New Mexico Department of Workforce Solutions (DWS) issued an RFP to implement a new unemployment insurance (UI) tax system, with an option to implement an accompanying new UI claims system. To address ongoing technical and system performance issues with the legacy UI Claims system, DWS is recommending the expansion of the uFACTS project to include the UI Claims component with the UI Tax project. 2

3. Problems with the Legacy UI Claims Application Inadequate system architecture design with several single points of failure resulting in frequent downtime Aging technology is no longer supported by manufacturers complicating system support for IT staff. System not available to constituents and users on a 24/7 basis. Obsolete system design results in poor system performance. UI Claims system inefficiency results in manual workarounds that require additional staff resources. 3

4. 4 UI Tax Budget SourcePhaseBudget Amount Amount spent encumbered to-date Associated restrictions Approvers Reed Act Funds Initiation and Planning $1.95 M Department of Workforce Solutions (DWS) State CIO Reed Act FundsImplementation$9.01 M Must be spent by 6/30/12 Department of Finance and Accounting (DFA) Department of Information Technology (DoIT) DWS UI Modernization Funds (ARRA) Implementation and Closeout $16 M $314K United States Department of Labor (USDOL) New Mexico Office or Reinvestment and Recovery (NMORR) DFA, DoIT, DWS $26.96M Spent: $11,274,454 Encumbered: $15,685,546

5. 5 UI Claims Budget (1 of 2) DescriptionCostPlanning uFACTS Claims$9,720,000$2,429,906 Gross Receipts Tax$ 681,000 Hardware & Software$ 750,000 Project Management$ 250,000 IV&V$ 100,000 Other Professional Services$ 900,000$ 400,000 Total$12,401,000$3,079, 906 * Budget as approved by NMORR and DFA

6. 6 UI Claims Budget (2 of 2) 2/3 UIMA Spend Plan 1/3 UIMA Spend Plan EUC Spend PlanTotal uFACTS UI Claims System $1,882,430$5,044,575$2,792,995$9,720,000 Gross Receipts Tax$681,000-- Hardware/software$750,000-- Project Management$250,000-- Independent Verifi- cation &Validation $100,000-- Backfill/Professional Services $900,000-- Sub-total by Plan:$4,563,4505,044,5752,792,995 Total:$12,401,000 * Budget as approved by NMORR and DFA

7. Project Budget: Tax and Claims 7 UI Tax $ 26,960,000 UI Claims $ 12,401,000 Planning - $3.079M Implementation $9,321M Total $ 39,361,000 Source of Funds: Federal Reed Act UI Modernization (stimulus) funding

8. Project Governance 8 1. Tax and Claims modules will be managed as one integrated project. 2. National Association of State Workforce Agencies (NASWA) defines: “Fully modernized refers to a UI system with both Tax and Claims system component platforms modernized”

9. Agency Project Stakeholders 9NAME S TAKE IN P ROJECT O RG T ITLE Ken OrtizCabinet SecretaryNMDWSCabinet Secretary Neil MeoniExecutive SponsorNMDWSDeputy Secretary Casandra EnciniasBusiness OversightNMDWSUI Bureau Chief John SalazarTechnical OversightNMDWSChief Information Officer Ron MartinezTechnical OversightNMDWSDeputy Chief Information Officer Clyde DeMerssemanLegal OversightNMDWSLegal Counsel Donna Trujillo Financial Oversight Administrative Oversight NMDWSChief Financial Officer

10. 10 uFACTS Timeline

11. 11 Project Management and IV&V Project Manager: Procurement being evaluated by GSD / SPD IV&V: Pending discussions with GSD / SPD and vendor

12. Project Plans TARC: December 8, 2010 System Architecture DotNet Oracle PCC: Implementation – December 15, 2010 12

13. 13 Summary Deliver UI Tax and UI Claims projects on one consolidated architecture/platform Address legacy system performance issues Provide seamless integration between Tax and Claims applications Improve delivery of constituent services Planning Phase: $3,079,096

14. 14 Thanks! Questions?