Panel supports treasurer’s request to hire tech chief

A legislative panel on Thursday endorsed state Treasurer Dennis Milligan’s proposal to create a chief information technology post in his office that would pay a salary up to $97,400 a year.

Milligan, a Republican from Benton, said in a letter to a legislative subcommittee that he wants to hire a former consultant for the office’s Massachusetts-based information technology consultant, Edgewater Technology. The former consultant designed and implemented the treasury management system used by the office since 2005 and has assisted the office since then, he said.

The prospective employee is Craig Johnson of Hot Springs, who hasn’t received a formal job offer from the office, Milligan spokesman Stacy Peterson said after the subcommittee’s meeting. She said the office also hasn’t determined a salary level yet.

“Our treasury management system is a critical component to all of our operations,” Milligan wrote in his letter to the Legislative Council’s Personnel Subcommittee. “Any malfunction in that system could lead to delays or a shutdown to treasury operations.”

The subcommittee recommended approving Milligan’s request, after a few lawmakers asked about it. The council is scheduled to consider the recommendation this morning.

Milligan said in his letter that if lawmakers approved his request, he would keep open a vacant treasury management post between now and June 30, the end of fiscal 2018, and ask the Legislature in the upcoming fiscal session to eliminate that position for fiscal 2019 to ensure there will be no increase in his office’s expenses. The office has 33 positions.

The vacant post was held by Larry Tate, who departed his $68,400-a-year job at the end of June 2017 to start work as the Arkansas Development Finance Authority’s housing programs manager.

During the subcommittee meeting, Sen. Terry Rice, R-Waldron, pressed Chief Deputy Treasurer Grant Wallace for information about Johnson’s qualifications and experience.

Wallace said Johnson earned a bachelor’s degree in computer science with a minor in mathematics from the University of Central Arkansas in 1990 and has completed 12 hours toward a master’s degree in computer science from the University of Arkansas at Little Rock.

Johnson has been a senior consultant and project manager for Edgewater Technology since 1999; client information technology manager for Arkansas Children’s Hospital from 1998-99; and director of information technology for Medical College Physicians Group from 1996-98, according to his resume.

Johnson was the main developer of the treasury management system in 2005-06, and has worked with the treasurer’s office on updates and system overhauls since then, Wallace said.

“We were just afforded a unique opportunity that we really didn’t anticipate or plan for. But we do think this would be in the best interest of not only the office but the state and to continuing operations of our systems and

services,” he said.

Rice asked Wallace whether the proposed position would be subject to the approval of the state Board of Finance, which includes, among others, Gov. Asa Hutchinson, state Auditor Andrea Lea, Department of Finance and Administration Director Larry Walther and Milligan.

“No, sir. This would be outside of the positions [under the board’s control],” Wallace said. “He would report to me.”

In May 2017, the Board of Finance blocked Milligan’s plans to reclassify Ronald Roberson, a former vice president and senior trader at the Bank of Oklahoma, as a senior investment manager from a $70,000-a-year post for which Milligan hired him in February. The board voted to require that the person hired to fill the senior investment manager position to have a college degree, which Roberson lacked.

During Thursday’s subcommittee meeting, Rep. Kim Hammer, R-Benton, asked why the treasurer’s office needs a chief information technology officer if Edgewater Technology continues to provide some support services.

Wallace replied that Johnson “is the one that designed the program. He is the only one on their staff that knew the program and knows the program backwards and forwards and knows our operations.”

But Hammer asked, “What’s the backup plan if something happens to him, God forbid? It sounds like we are sitting a little vulnerable there. We can hire [him] today, but what if something happens to him, what’s the long-term arrangement?”

“We would work in conjunction with this new Edgewater [that is in transition] to ensure that their staff gets trained and up to speed on everything as well as we will have somebody internally that will be a backup for him as well,” Wallace said. “Hopefully within this year, we can ensure the necessary backups are in place.”