Addressing Glitches: A Path Toward Sustainable Reform

The ambitious endeavor to overhaul Nevada’s outdated finance infrastructure has faced unforeseen challenges. Since its implementation in early January, the new system has experienced difficulties in processing essential payments, including child support, pensions, and health savings accounts. Additionally, the transition has led to disruptions in vendor payments and budget account interfaces for state employees, according to interviews with staff and project leadership memos obtained by The Nevada Independent.

Historical Context: A Decade of Delayed Modernization

For over a decade, state officials have sought to revamp the finance and human resources systems. A 2014 study revealed that Nevada’s IT systems, unchanged since 1999, ranked among the least effective and efficient in the nation. Previous attempts, such as the SMART 21 project, which consumed $80 million before collapsing due to poor management, underscored the complexity of the task. When Governor Lombardo took office, he promptly terminated this failing project, citing unresolved issues left by the previous administration.

Lombardo’s administration secured more than $160 million in legislative funding for CORE.NV, a substantial increase from the original $50 million estimate. Project leaders assured legislators that the system would go live on schedule, with the exception of the Department of Transportation’s finance systems, slated for summer deployment. However, third-party evaluators flagged critical risks, including inadequate testing and lack of contingency plans, raising concerns about the rushed timeline.

Employee Impact: Payroll Disruptions and Operational Strain

State employees have borne the brunt of these challenges. Payment delays and errors have affected numerous workers, causing financial strain for those living paycheck to paycheck. One employee, who wished to remain anonymous, reported not receiving their health savings account payments, forcing them to cover healthcare costs out-of-pocket. Another colleague experienced a two-week delay in receiving their paycheck, only resolved after intervention from higher-ups.

Internal communications highlighted ongoing issues with timesheet processing and integration between old and new systems. State HR officials acknowledged “significant” problems, resulting in a surge of manually completed timesheets. While officials attributed many payroll issues to the legacy HR system, employees expressed frustration over insufficient training and unclear guidance, particularly regarding posting codes crucial for accurate accounting entries.

Official Response: Mitigating Risks and Moving Forward

Despite setbacks, state officials maintain that many issues have been addressed. Spokeswoman Elizabeth Ray emphasized that the legacy system’s inherent flaws contributed to recent payroll problems. She noted that the new platform, set to debut in summer, would adhere to industry best practices and ensure long-term sustainability. Brian Bowles, administrator of the Office of Project Management, acknowledged the need for immediate decisions to avoid delays, even if they deviated from standard protocols.

Project leaders confirmed resolving numerous interface issues impacting financial data accuracy. They also highlighted the value of internal collaboration, sharing tips and tricks to improve system usability. However, some employees remain skeptical, citing increased workload and inefficiencies compared to the old system. As CORE.NV evolves, stakeholders hope that continuous improvements will ultimately lead to a robust and reliable finance framework for Nevada.