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Colorado lays off 173 workers in state office as part of IT shakeup

Head of Office of Information Technology agency steps down as part of agency reorganization

Sarah Tuneberg, part of Colorado's COVID-19 ...
Sarah Tuneberg speaks at a news conference regarding the state's COVID-19 response in April 2020. She will lead the Colorado governor's Office of Information Technology, Gov. Jared Polis announced Wednesday. (AP File Photo/David Zalubowski)
Nick Coltrain - Staff portraits in The Denver Post studio on October 5, 2022. (Photo by Eric Lutzens/The Denver Post)
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The Governor’s Office of Information Technology is laying off more than 170 people and its executive director is stepping down as part of a “large-scale realignment,” the state agency announced Wednesday.

Gov. Jared Polis’ office announced the leadership shakeup on Wednesday afternoon but did not directly acknowledge the 173 employees being laid off. Executive Director David Edinger will step down June 11, according to the announcement.

Sarah Tuneberg, the deputy executive director for digital and delivery, will be his replacement. Tuneberg previously helped Polis’ administration with its COVID-19 response several years ago.

In a separate statement, the Office of Information Technology said it was launching a new structure “designed to fundamentally improve how the state designs, builds and maintains the technology Coloradans depend on to access government services.”

“This is a heavy day at OIT as we say goodbye to many of our colleagues,” Tuneberg said in the statement. “Itap bittersweet because, at the same time, OIT is taking an important step forward. This next chapter is about genuine transformation, not just a refresh.”

The office works on technology services that include delivering SNAP benefits, unemployment insurance and driver’s license renewal, as well as expanding broadband access. The agency has a $373 million annual budget and oversees $1 billion in federal grants.

The reorganization had been in the works for months, but the scope of the layoffs was unexpected. An internal FAQ document about the realignment, provided to The Denver Post, stated on April 9 that 17 positions would be eliminated, but that they were mostly vacant.

The FAQ also stated, “We are looking at all options that establish better alignment among people, processes and technology and deliver clear value to our agency partners, customers and Coloradans.”

A spokesperson for the agency didn’t immediately respond to a question about the discrepancy on Wednesday afternoon.

State Rep. Brianna Titone, an Arvada Democrat and vice chair of the Joint Technology Committee, said in an interview that she was “surprised” by the layoffs. The committee has legislative oversight authority for the Office of Information Technology. She heard about the decision only on the morning of the announcement.

“They said they were restructuring, but my goodness,” Titone said. “How’s anything going to get done? Are they going to hire a bunch of contractors now?”

The agency had faced recent security audits that left Titone “very upset,” and she said she was drafting a no-confidence letter regarding Edinger as a result. She also criticized the agency for stashing more than $30 million in a revolving cash fund beyond the agency’s identified needs.

In about the reorganization posted by the office, it acknowledged that “OIT is not delivering at the level Coloradans and agency partners need — our legislative oversight entities and agency feedback have all said so directly.”

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