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3d ago

Newsom Disputes Auditor’s Forecast of $225 Million Telework Savings

A state audit estimates that allowing three remote days per week could cut office space by 30%, saving $225 million annually, a projection the governor’s office deems hypothetical.

California Governor Gavin Newsom disputes a report that remote work for government employees could save the state millions. 

Overview

  • The auditor’s report identified seven major state buildings totaling 5.5 million square feet where a three-day remote schedule could reduce space by about 30%.
  • It projected annual real estate savings of $225 million under a hybrid model versus Newsom’s four-day in-office directive.
  • Newsom’s office argued the audit relies on hypothetical assumptions and incomplete data and does not constitute a scientific study of workforce outcomes.
  • Implementation of the governor’s order requiring four in-office days per week has been delayed for many employees during negotiations with SEIU Local 1000 and other unions, pushing full rollout into 2026.
  • The auditor also criticized the governor’s office and Department of General Services for lacking comprehensive space-use data and guidance, and recommended the Legislature amend laws to expand multi-day remote work options.