The Montana House Appropriations Committee convened on March 21, 2025, to discuss critical updates regarding the state's IT services and budget allocations. A significant focus of the meeting was on the increased costs associated with onshore cloud storage and data management services, particularly for the Department of Public Health and Human Services (DPHHS).

Director Gilbertson highlighted that the state is experiencing a rise in usage of IT services, including application hosting and live storage, which is essential for managing the growing volume of data. The discussion revealed that the state must adhere to strict security regulations, requiring all data to be stored onshore, which significantly raises costs compared to offshore alternatives. This necessity stems from compliance with federal standards, such as FedRAMP, which mandates rigorous certification processes for government cloud services.

Representative Falk raised concerns about the implications of these increased costs, questioning the differences in pricing between onshore and offshore services. Gilbertson clarified that the higher expenses are not solely due to storage but also the additional requirements for certification and security that onshore services entail.

The committee also addressed the need for further clarification on the budget allocations related to DPHHS, with members expressing a desire for more detailed discussions in future meetings. The session concluded with an acknowledgment of the importance of thorough questioning and collaboration among committee members to ensure effective oversight of the budget process.

As the committee moves forward, the implications of these discussions will likely influence future budget decisions and the overall approach to IT service procurement within the state.