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Tuesday, May 21, 2024

UW System gives update on $81 million payroll project

State lawmakers received an update Wednesday on an IT project meant to improve the payroll process at all University of Wisconsin institutions.

This is the first phase of a larger project to overhaul the UW budget system.

""The impact of this replacement has administrative functionality and affects each and every current employee of the University of Wisconsin system, all retirees and any potential employee of the system,"" Tom Anderes, senior vice president for administration and fiscal affairs, told the committee.

When the committee received a briefing in October, state Rep. Kitty Rhoades, R-Hudson, expressed concern that the project would not maintain its original budget.

She cited millions of dollars ""wasted"" on failed IT projects in the past.

Anderes said Wednesday the project will adhere to its original financial plan as it has throughout the process.

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""There are points where we are looking at balancing the budget in terms of where we have excess dollars, and trying to offset some of that with where we may need some additional dollars,"" Anderes said.

The committee also followed up on the employment of Huron Consulting Group Inc., a private contracting group.

State Rep. Gary Sherman, D-Port Wing, committee co-chair, asked about the contractor's ability to retain personnel for the project. He cited Huron's recent earnings misrepresentation, reported in August, as a reason for concern.

Anderes said to keep the project on track the state has had to depend on the contractor for a ""limited duration"" to fill vacant positions typically held by state employees.

He said employees working on specific segments of the project for only a few months tend to leave when they receive a better offer.

State Sen. Pat Kreitlow, D-Chippewa Falls, a committee co-chair, further inquired about staffing challenges. He questioned whether the terms of pay or whether putting people under contract for longer terms were sufficient.

""[The system should] not be used as essentially a public sector bargaining chip as people continually come out and say, ‘Well, I've got a better offer. What can you do about that?'"" he said.

According to Anderes, this is not a significant problem at this point, but one that must be watched vigilantly.

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