California’s ongoing debate over how to fix troubled government technology projects will enter a new phase on June 25, when the Little Hoover Commission convenes the third and final hearing in its review of IT project delivery. The upcoming session will include testimony from Nick Maduros, secretary of the California Government Operations Agency, the commission announced this week.

The hearing comes as the commission examines longstanding concerns over cost overruns, delays, and disappointing outcomes in major state technology projects. Over two previous hearings, a common theme has emerged: California’s technology systems are often hampered by procurement rules, funding structures, and management practices designed for a different era.

The commission’s first hearing, held in April, focused heavily on procurement and project delivery. Former state leaders argued that California continues to purchase technology through rigid processes that emphasize compliance rather than results. Witnesses urged the state to move away from large, custom-built systems and toward smaller, modular projects that can be tested and improved over time.

Those recommendations pointed towards greater use of proof-of-concept projects, more flexible funding mechanisms, stronger executive ownership of technology initiatives, and better visibility into what agencies are buying and whether those purchases deliver value. Witnesses argued that procurement systems originally intended to protect taxpayer dollars have become so complex that they often discourage innovation and increase project risk.

The commission’s second hearing in May expanded the conversation beyond procurement to the broader question of how government organizes and manages technology work. A central thread followed the need to shift from a traditional “project” mindset to a “product” model, in which digital services are continuously improved rather than treated as one-time implementations. 

Jeffery Marino, director of the California Office of Data and Innovation (ODI), and Anne Crew-Renzo, ODI’s deputy director of government affairs and innovation training, testified on May 28, calling for a shift in culture and capabilities in state technology delivery. Marino said many failures stem less from technology itself than from limited capacity inside state organizations to define problems, test solutions, and improve services over time.

Code for America Founder Jennifer Pahlka led testimony at the second hearing, citing Colorado as a model, noting the state’s announcement to place its digital service team in charge of the Office of Information Technology and to expand internal capacity for complex systems, including Medicaid enrollment and eligibility. Pahlka said reforms must include changes to budgeting, procurement, and oversight.

The first two hearings produced a broad consensus that California’s current approach is struggling to keep pace with modern technology development. Speakers repeatedly called for shorter development cycles, greater user-centered design, more experimentation, and stronger internal capabilities.

The June 25 hearing will provide an opportunity to test those ideas against the realities of governing, ahead of a new administration next year. “It’s tempting to think… the new governor can do this. Gavin Newsom has been, I think, very knowledgeable on this … he has not yet succeeded, and the legislature is a limited tool, both in terms of how they can change the law and dictate different conduct. The agencies have problems, so how do we get a consensus, a leadership consensus about this new product-oriented use of technology as opposed to bending silicon in big procurements,” Commissioner David Beier, managing director of Bay City Capital and a former senior officer of Genentech and Amgen, said on May 28.

Maduros’ appearance holds particular significance–he oversees the Government Operations Agency, which includes many of the departments responsible for state technology policy, procurement, and digital services. His testimony may offer insight into how the Newsom administration views the recommendations emerging from the commission’s review and whether state leaders see opportunities for meaningful reform.

Maduros will be joined by Center for Digital Government president Rob Lloyd, as well as CEO and co-founder of Truss Jen Leech and director of engineering for Truss Mazdak Atighi. Truss, a technology consultancy known for its work on digital government services.

The hearing could prove especially timely as state agencies face growing pressure to modernize services while managing budget constraints and adapting to rapid advances in artificial intelligence (AI). Many of the witnesses who have appeared before the commission have argued that government must become more agile if it hopes to take advantage of emerging technologies while avoiding the failures that have plagued large IT projects in the past.

The virtual hearing will begin at 10 a.m. on June 25 and will be open to the public. Commissioners are expected to use testimony from all three sessions to inform future recommendations on improving technology delivery across California state government.