Auditor: California could save $225 million a year by letting state employees work remote

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Supporters of remote work for California state employees are rejoicing after a recent state audit revealed that the state could save hundreds of millions of dollars on facilities and real estate expenses if staff worked from home.

According to a recently published report from the California state auditor’s office, it appears that Governor Gavin Newsom arbitrarily summoned employees back to the office without providing any clear justification, such as worker productivity data.

The audit, which was requested by state lawmakers in May 2024 after the governor initially ordered employees to return to the office two days a week after they had been sent to work remotely during the COVID-19 lockdown, discovered that Newsom’s office had neglected to collect crucial data regarding the costs and requirements of department office space and had not used any productivity data from state employees to support its in-office mandate.

Newsom’s administration inked a number of contracts with public employee unions, but he also signed a new executive order earlier this year that increased the number of necessary in-office days from two to four.

State Auditor Grant Parks came to the conclusion that if California continued to have employees in the office two days a week and work remotely three days a week, it could save up to $225 million annually and cut its office space by almost a third.

Additionally, the governor’s office disregarded survey results from the Department of General Services, its own monitoring body, which gathered departmental estimates of the amount of office space needed to encourage employees to return more frequently.

Overall, we came to the conclusion that a one-size-fits-all strategy for telework is against state law and would restrict chances for large cost reductions, Parks concluded.

Work-from-home advocates hailed the research as more evidence that Newsom’s return-to-office orders were arbitrary, politically driven choices rather than a sincere attempt to boost employee productivity. Union leaders claim that by lowering commuting traffic, flexible hybrid work arrangements can help the state save money while also assisting in the achievement of aggressive emissions and climate targets.

Ted Toppin, executive director of the Professional Engineers in California Government, a union that represents state engineers, said in a statement on Tuesday that this audit validates what has long been clear: Flexible telework helps taxpayers, the state government, and state employees.


According to the audit, state legislators should mandate that agencies find jobs that can effectively work remotely three days a week and provide that choice. Additionally, it directed the state to create guidelines for agencies to assess the success of their telework initiatives.

The governor’s office respectfully disagrees with the auditor’s findings, which were predicated on conjecture and insufficient information, according to a statement released by Newsom spokesperson Tara Gallegos.

According to Gallegos, this audit of state telework is not a scientific study and does not fully represent the state workforce or the advantages of in-person work.


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