Client Overview and Challenge
The California Franchise Tax Board (FTB) needed to modernize its outdated and fragmented IT
infrastructure, which had grown increasingly inefficient over decades of state growth. The
complexity of the legacy systems made it difficult for FTB to manage tax collection effectively, and
they lacked the internal expertise to plan and execute a large-scale modernization effort.
Actions Taken
Level 4 Ventures was brought in to guide FTB through the modernization process. We conducted a
cost-benefit analysis, developed a business case, and secured funding from the California
Department of Technology (CDT). We also provided expert advice, structured the contractor
statements of work, and used our ExcelerPlan tool to manage project oversight, vendor
management, and risk throughout the project’s lifecycle.
Results and Impact
The modernization project, known as EDR1, was completed on time and within budget, significantly
enhancing tax collection efficiency and generating $3.7 billion in additional revenue, with $1 billion
in annual ongoing benefits. Due to its success, ExcelerPlan was standardized for all FTB projects and
adopted by other state agencies. The successful execution of EDR1 led to Level 4’s continued
involvement in the EDR2 project, further ensuring the effectiveness and sustainability of FTB’s
modernization efforts.