Idaho State Controller's Office says it may take 2-3 years before Luma system is optimized • Idaho Capital Sun

Officials with the Idaho State Controller’s Office told a legislative committee Friday that it may take two or three years for the new Luma business and IT system to be fully optimized.

On Friday, officials with the Idaho Office of Performance Evaluation presented their new evaluation report on the Luma business, finance, HR and IT system to the Idaho Legislature’s Joint Legislative Oversight Committee. 

“The key takeaway is clear; transitioning to Luma was the right decision,” Idaho State Controller Brandon Woolf told the committee. “In visiting with other states, projects of this magnitude require two to three years to fully optimize, and we are firmly on the right path to success.”

Luma, which is based on software purchased from Infor, is designed to improve security and efficiency for state agencies by replacing legacy systems from the 1990s that had outlived their useful life and were vulnerable to security threats. But the $117 million Luma system, launched in July 2023, experienced a rocky rollout that included duplicated payments, payroll challenges, late payments, reporting and reconciliation challenges and the inability to independently verify cash balances, according to the evaluation and a series of previous audits of Luma.

In the latest Luma challenge, state budget officials said Tuesday that the state was not able to identify $14.5 million in state revenues by the deadline to use that money to reduce Idaho property taxes this year. 

After Friday’s presentation, Woolf issued a response and fielded questions from legislators. Luma is housed in the Idaho State Controller’s Office, which was also involved in purchasing Luma. 

Woolf told legislators his office takes accountability for the challenges with Luma, and believes sticking with Luma and optimizing it to see its full potential is the best option for the state moving forward.

Woolf said the Idaho State Controller’s Office is developing a “people-first” strategy working to repair relationships with state employees and rebuild trust. As part of that effort, the office is developing a sustainable training strategy and focusing on communication.

“As we move forward, we are guided by a clear vision – to restore trust, improve transparency and ensure that Luma delivers the value it was designed to provide,” Woolf said. “This is a collective effort, one that depends on ongoing collaboration and respect with all involved.”

Idaho Office of Performance Evaluation Director Ryan Langrill told legislators the best path forward for the state is improving Luma.

“We believe that moving forward with Luma, rather than migrating back to the legacy system or doing a whole new procurement for a new system, is the most realistic option,” Langrill said.

In the Idaho Office of Performance Evaluation report on Luma, evaluators suggest legislators consider changes to Idaho’s purchasing process and consider changes to the governance and accountability of Luma. In the report, Langrill’s team suggested the purchasing process the state used to get Luma may have limited choices available to the state.

Moving forward, Woolf said his top priority is improving the reporting processes in Luma. But Woolf stressed he believes in Luma and that it will bring security benefits to the state and standardize data entry across different agencies and divisions. 

“The narrative that Luma does not work is counterproductive and not accurate,” Woolf said. “Luma is functional but it’s not perfect – it processes transactions, handles payments and ensures everyone gets paid.”