LANSING, Mich. (WZMQ) – Michigan lawmakers are weighing competing proposals to overhaul how the state manages information technology projects after a new audit found widespread weaknesses in oversight of billions of dollars in state contracts.
The Michigan Office of the Auditor General reviewed 276 IT contracts worth about $6.6 billion and concluded the Department of Technology, Management and Budget’s monitoring “was not sufficient.”
The audit found missing monitoring reports, incomplete training for contract managers, weak coordination between state offices and inconsistent tracking of vendor performance.
Auditors told the House Oversight Committee that nearly one-quarter of sampled contracts had no monitoring reports completed at all. More than half of required reports were missing, and roughly half of contract program managers had not completed required training.
The report also found no centralized location for contract monitoring data and raised concerns about unclear responsibilities between DTMB offices responsible for procurement and project management.
Committee Chair Rep. Jay DeBoyer (R-Clay Township), questioned whether the state has a consistent system in place to monitor projects and hold vendors accountable.
“It seems like even when they had a structure of necessary reporting, they weren’t even doing that,” DeBoyer said during the hearing.
The audit arrives as lawmakers consider multiple bills aimed at restructuring how Michigan develops and oversees major technology systems.
House Bill 5504 would create a State Digital Service Office within DTMB for a five-year pilot period. The office would oversee major IT projects, promote modern software development practices and review contracts exceeding $1 million.
Supporters say the proposal would centralize oversight and improve accountability by creating a dedicated office focused on modernizing digital services and reducing costly project failures.
A companion proposal, House Bill 5505, would create a legislative Digital Oversight Office with authority to investigate troubled projects and review complaints involving state IT systems.
Another measure, House Bill 5663, would take a different approach by limiting individual state IT projects to three years and $10 million in cost. The bill would effectively require the state to break larger projects into smaller, modular contracts.
Supporters argue smaller projects would reduce risk and limit dependence on large vendors, while critics warn the approach could increase procurement complexity and administrative burdens.
During the hearing, lawmakers repeatedly connected the audit findings to real-world problems residents experience with state systems.
Rep. Luke Meerman (R-Coopersville), pointed to longstanding issues with child welfare technology systems.
“There isn’t another sort of business in the state of Michigan,” Meerman said. “I mean, if your bank’s IT system went down and was so clunky and so broken, you would move banks. You would say, I’m done, I’m moving to another bank. These kids can’t move to another bank.”
Some lawmakers argued the problems stem from fragmented authority and unclear accountability structures.
Others defended DTMB, noting the department manages massive cybersecurity responsibilities and has implemented some corrective actions since the audit period reviewed by auditors.
Rep. Jason Woolford (R-Howell), argued the findings point to broader management problems inside state government.
“We have got to stop appointing people that are not or do not have a resume to run these departments,” Woolford said.
Auditors noted the review covered activity between October 2020 and September 2024, though some lawmakers said DTMB has since implemented improvements tied to several findings.
The House Oversight Committee plans to invite DTMB officials to testify in a future hearing as lawmakers continue debating how best to address the state’s IT oversight problems.
