Idaho State Controller Brandon Woolf, center, discusses the Luma system on Nov. 22, 2024, at the Idaho State Capitol in Boise. (Clark Corbin/Idaho Capital Sun)
In 2023, the state of Idaho launched an ambitious technological overhaul with the Luma system, a comprehensive, cloud-based system designed to centralize and automate essential functions across state agencies. Approved with a budget of $117 million, Luma was intended to replace outdated systems from the 1980s that no longer met Idaho’s needs for modern governance, security and efficiency. The project implementation itself cost $93 million, coming in under the projected $102 million outlined in the system modernization study.
By consolidating payroll, finance, human resources, budgeting and procurement processes into one unified platform, the Idaho State Controller’s Office aimed to create a streamlined system that would improve transparency, enhance data security and facilitate more efficient operations across its 86 state agencies.
Despite its potential, Luma’s rollout has faced significant challenges. The system has been met with user frustration, operational disruptions and complex adjustments to daily workflows. Recently, audits revealed high rates of data validation and security failures, and employee surveys indicated widespread dissatisfaction. Many users report that tasks now require more time and additional steps, with some employees resorting to workarounds outside the Luma platform to complete their responsibilities. The Idaho Office of Performance Evaluation, tasked with assessing the system’s functionality, found that only a small percentage of employees believe Luma has improved efficiency, with most users reporting increased complexity and difficulty in daily tasks.
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These challenges are not unique to Idaho. Large-scale IT transitions in government face many pressures, including the need for broad stakeholder buy-in, rigorous data security and continuity across varied departments. A U.S. General Services Administration report notes a study by The Standish Group, found that as few as 13% of such projects succeed, often due to outdated procurement practices, lack of change management and insufficient employee training.
The challenges Luma has faced leave Idaho’s state operations at a crossroads, with a critical need for strategic improvements to fulfill the system’s intended purpose. The issues with Luma have strained state resources, increased employee workloads, and, in some cases, compromised data accuracy and security. Despite these challenges, Idaho remains committed to the system, recognizing that reversing course would be cost-prohibitive.
The Idaho State Controller’s Office has acknowledged the need for improvement and plans to implement updates, including artificial intelligence tools that could help automate certain processes. These updates, if effectively implemented, could enhance Luma’s functionality and alleviate some of the system’s current inefficiencies. Additionally, the OPE’s ongoing evaluations and legislative scrutiny indicate that Idaho’s government is taking Luma’s challenges seriously and is committed to finding solutions.
Moving forward, Idaho State Controller Brandon Woolf emphasized his commitment to improving the Luma system.
“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.” Woolf added that his top priority is improving reporting processes within Luma while stressing that the system’s security benefits and standardization across agencies are already making a difference.
To realize Luma’s full potential, Idaho must address these challenges through comprehensive training programs, regular audits, phased updates and a proactive approach to identifying and resolving issues. Luma’s experience underscores the importance of planning, preparation and continuous oversight in government IT projects. Moving forward, the lessons learned from Luma’s implementation will not only shape Idaho’s approach to IT modernization but also offer a roadmap for other states undertaking similar projects.
As Idaho’s Luma system shows, the promise of innovation in government technology comes with great potential and substantial risk. At Mountain States Policy Center, we believe that a free-market approach to innovation, with a focus on efficiency and fiscal responsibility, is the cornerstone of effective governance. Luma’s journey highlights the importance of combining ambitious technological advancements with careful, measured planning and oversight to protect taxpayer resources while maintaining public trust.
As Idaho works to refine the Luma system, we echo Controller Woolf’s belief in the system’s potential. Woolf said his priority is to improve Luma’s reporting processes while continuing to build on its security benefits and agency standardization. This underscores the state’s commitment to ensuring Luma’s success.
Modernizing state systems is vital in an increasingly digital world, but the execution must be as well-structured as the goals. Luma was envisioned as a leap forward in transparency, security, and efficiency, but a rushed rollout, insufficient training, and reactive problem-solving limited its ability to deliver on these promises. As stewards of public funds, government leaders have a duty to ensure that technological advancements are thoughtfully vetted and implemented in ways that enhance productivity without sacrificing reliability or accountability.
The story of Luma is a reminder that with the right balance of innovation, planning, and oversight, government technology projects can achieve their goals, without exceeding their budgets or compromising on service. For Idaho and other states pursuing similar modernization efforts, the path forward is clear: embrace technology, but ground it in strategic, human-centered practices that ensure each dollar spent delivers measurable value to the public.
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