California Governor’s Return-To-Office Mandate May Cost State $225 Million Annually, Audit Finds

A recent audit allegedly shows that California could save hundreds of millions annually by not enforcing strict return-to-office mandates for state employees (although Governor Gavin Newsom disputes this).

The report shows that Governor Newsom’s directive requiring state workers to be in the office four days a week was issued without fully assessing space needs or costs, potentially leading to $225 million in added expenses each year, according to CBS News.

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The audit, requested by Assemblymember Josh Hoover, challenges the governor’s uniform hybrid work policy. It notes that several departments, having reduced office space during the pandemic, lack sufficient workstations to accommodate employees returning full-time. 

For example, the Department of Health Care Services would need 541 additional desks, while the Department of Resources, Recycling and Recovery requires 123 more.

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Hoover emphasizes that state agencies were initially encouraged to prepare for telework, which contributed to these space shortages and logistical challenges in bringing employees back.

The governor’s office disputes the audit’s conclusions, describing the findings as based on estimates and incomplete data, but indicates it will consider the recommendations as it manages workforce policies.

Meanwhile, state worker unions have opposed the four-day in-office requirement, currently scheduled to begin in July 2026, and the audit has intensified the ongoing debate.

The report urges the state legislature to step in and establish clear guidelines for determining which state jobs should be remote or on-site. Assemblymember Hoover plans to propose related legislation next year.

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