Assembly Bill 1729, which would establish telework protections for California state employees, could save the state $225 million annually according to a new analysis from the Senate Committee on Appropriations released earlier this week.
The bill, spearheaded by Assemblymember Alex Lee, D-San Jose, would require the Department of General Services to create a telework dashboard displaying the cost-effectiveness of work-from-home policies and mandate that each state agency evaluate such arrangements every 10 years. The measure also aims to encourage telework for state employees, directly challenging Governor Gavin Newsom’s return-to-office mandate that took effect July 1, 2026.
The $225 million savings figure comes from a 2025 California State Auditor report that concluded telework arrangements could reduce the state’s office space footprint by approximately 30 percent and generate significant cost savings through reduced real estate and facilities expenses. State Auditor Grant Parks found that allowing employees to work from home at least three days per week could produce these annual savings.
Implementation costs for the bill are modest relative to projected savings. According to the committee’s analysis, there would be a one-time cost of $663,000 to contract information technology staff to create the telework reporting system. California would then pay an estimated $1.2 million annually from the general fund for six positions to maintain the system, coordinate data collection, and manage reporting requirements. State departments could pay up to $8.9 million annually for approximately 50 analyst positions to collect and submit data, though the bill does not explicitly mandate this reporting. The roughly $10 million in recurring estimated costs is less than 5 percent of the projected $225 million in annual savings.
The bill faces a significant political headwind: Governor Newsom’s order requires most state workers to report to the office four days a week, up from the previous two-day requirement. Newsom has stated that the return-to-office mandate aims to boost creativity and foster relationships among state employees. However, unions representing state workers, including SEIU Local 1000 and Professional Engineers in California Government, argue that employees bear the cost of the mandate through expenses like gas and parking, and that many tasks can be performed just as effectively remotely.
At the August 4 committee hearing, representatives from SEIU Local 1000 testified in support of the bill. Schuyler Waldeck-Myers, a fiscal analyst with the California Department of Corrections and Rehabilitation, highlighted the favorable return on investment, calling the startup costs “almost negligible” compared to the long-term savings potential. The bill will be heard again on August 13.
The prospect of AB 1729 becoming law appears uncertain. The Sacramento Bee reported that Governor Newsom signing the bill “seems unlikely,” given his explicit commitment to the return-to-office policy. The bill represents one of several efforts by unions and lawmakers to challenge Newsom’s mandate, including a lawsuit that a judge denied and grievances filed with the California Public Employment Relations Board.
Sources
- Sacramento Bee — Bill analysis, implementation costs, committee hearing details, and testimony from SEIU Local 1000 and state workers.
- California State Auditor — August 2025 report on state telework policies, $225 million savings estimate, and 30 percent office space reduction potential.
- CalMatters — State Auditor findings and telework savings analysis.
- GovTech — Bill analysis and savings projections.
- CAP Radio — Newsom’s return-to-office mandate details and state worker response.
