The controllers office is planning to return its payroll operations back to the legacy system "that is currently and reliably paying all other 240,000 State employees," the statement adds.
MyCalPAYS is the "largest payroll modernization effort" in the nation, according to Chiang's office.
It would be a mistake to take California's version of events at face value, according to one observer.
"There are one of two possibilities here, the data getting into the system is wrong, or the system itself is taking correct data and mangling it," said Michael Krigsman, CEO of consulting firm Asuret. "Despite SAP's history with project failures, SAP has many other government customers using payroll successfully. In this case, it's just not likely that SAP would not be able to handle a fairly simple payroll for 1,300 people."
In addition, "you have to assume that after going back and forth [with the state], SAP must have put good people on it to troubleshoot [the project]," added Krigsman.
California also has a history of large IT project failures, which "further casts questions onto the role of the state controller's office in this," Krigsman added. "I wonder what sort of skeletons lie in the [controller's] data closet that could have contributed to this problem."
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com