TL;DR
FI$Cal is California’s consolidated financial management system, conceived in 2005 and declared functionally complete in 2021. The PeopleSoft- and Hyperion-based platform now supports thousands of users across most state departments and is moving toward cloud infrastructure while a few agencies are still scheduled to join.
What happened
The Financial Information System for California (FI$Cal) began as a 2005 plan to replace an aging IBM iSeries budgeting application and evolve into a unified ERP, HCM and procurement platform for the state. The project was formalized with a multi‑agency memorandum in 2007 and brought a systems integrator on board in 2012. Core functionality was deployed by July 2021 and, in 2022, the legislature found the project met its objectives. FI$Cal runs on PeopleSoft and Hyperion technology and currently serves about 16,000 end users across 151 departments. In fiscal 2023–24 it processed roughly $453 billion in spending, while supporting banking transactions handled through the State Treasurer’s Office exceeded $2.9 trillion. The program is implementing a cloud-first policy and is migrating infrastructure to cloud services; several departments remain deferred with planned onboarding waves continuing through at least 2028.
Why it matters
- Scale: FI$Cal centralizes core financial operations for the U.S. state with the world’s fourth-largest economy, an uncommon consolidation for public-sector finance.
- Operational risk and visibility: A single ledger and integrated platform can improve statewide budgeting, cash management and procurement control.
- Migration and modernization: The shift toward cloud infrastructure and potential SaaS raises questions about cost, timing and legacy customization.
- Governance and deadlines: Statutory requirements and planned onboardings (including high-profile agencies) create fixed milestones that drive priorities.
Key facts
- FI$Cal was first proposed in 2005 to replace a 1984 IBM iSeries budgeting system.
- A memorandum of understanding among key state fiscal officers was signed in 2007.
- A systems integrator was engaged and implementation waves began in 2012.
- Final functionality was deployed in July 2021; legislature judged objectives met in 2022.
- The system supports about 16,000 end users in 151 departments.
- FI$Cal processed about $453 billion in state spending in fiscal 2023–24.
- State Treasurer’s Office system activity related to FI$Cal handled more than $2.9 trillion in banking transactions in the same period.
- The transfer of the state’s accounting book of record to FI$Cal is due by a July 2026 statutory deadline.
- Department of Justice plans to go live in 2027; Caltrans expects to adopt FI$Cal in 2028.
- FI$Cal has adopted a cloud-first policy and is migrating infrastructure and disaster recovery to cloud services.
What to watch next
- Completion of the statutory transfer of the State of California's accounting book of record to FI$Cal by July 2026.
- Department of Justice planned go-live in 2027 and California Department of Transportation (Caltrans) onboarding in 2028.
- Progress of FI$Cal’s cloud migration, including the timing and approach for moving core software toward a SaaS model.
- Scheduling and onboarding of the remaining deferred departments and the anticipated three-year learning curve after each migration.
Quick glossary
- ERP (Enterprise Resource Planning): Integrated software that manages core administrative functions such as finance, procurement and human resources across an organization.
- HCM (Human Capital Management): Software and processes for managing employee records, payroll, benefits and workforce administration.
- SaaS (Software as a Service): A cloud delivery model where software is licensed on a subscription basis and hosted by the vendor rather than installed on local servers.
- Cloud-first policy: A procurement and development approach that prioritizes cloud-based solutions when evaluating new IT investments.
- PeopleSoft: An enterprise application suite originally marketed for ERP and HCM functions, later acquired by Oracle.
Reader FAQ
Is FI$Cal fully rolled out to all California departments?
Officially the rollout is complete in terms of final functionality, but several departments were deferred and are scheduled for later onboarding.
What technologies underpin FI$Cal?
FI$Cal is built on PeopleSoft and Hyperion technologies and is undergoing a phased migration of infrastructure to cloud services.
Will Oracle continue to support PeopleSoft?
Oracle has announced extended support for PeopleSoft through the end of 2035, and FI$Cal leaders have extended support annually in the meantime.
How much the FI$Cal project cost in total?
not confirmed in the source
PUBLIC SECTOR How California built one of the world's biggest public-sector IT systems 20 years, multiple delays, and millions of dollars later, FI$Cal is live – mostly Lindsay Clark Mon 29 Dec 2025…
Sources
- How California built one of the world's biggest public-sector IT systems
- Inside California's 16-year public-sector IT project
- Why is CA letting 3 companies hog the AI infrastructure?
- Governor Newsom partners with world's leading tech …
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