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California Could Save $225 Million a Year by Letting State Employees Work Remote, State Auditor Says

The audit found teleworking three days weekly could reduce office space by 30% and save California up to $225 million annually, challenging the governor's return-to-office policy.

  • On Aug. 12, the California State Auditor, State Auditor Grant Parks, found teleworking three or more days a week could save up to $225 million annually and reduce office space by 30%.
  • Last year, the audit originated after state legislators requested it following Gov. Gavin Newsom's in-office mandate, which lacked data on space needs and productivity, according to the California state auditor.
  • The audit examined seven large state properties across 19 departments, finding nearly 3.2 million square feet unused and costing nearly $117 million in fiscal year 2024-2025.
  • The governor’s office maintained it respectfully disagrees with the audit’s savings projection of up to $225 million annually, citing 'hypothetical theories and incomplete information.'
  • Looking ahead, union leaders say flexible hybrid policies can save money and advance climate goals by reducing commuter traffic, Assemblyman Hoover said he plans to introduce telework legislation as an alternative to the 2026 RTO mandate.
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Auditor: California could save $225 million a year by letting state employees work remote

Gov. Gavin Newsom appears to have arbitrarily ordered workers back to the office without using specific rationale such as data on worker productivity, according to a newly released report from the California state auditor’s office.

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abc10 Sacramento broke the news in Sacramento, United States on Tuesday, August 12, 2025.
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