California Gov. Gavin Newsom disagrees with a state audit released Aug. 12 that found his state could save up to $225 million each year by allowing state workers to work remotely.

State workers have slowly returned to the office after teleworking during the COVID-19 pandemic. In March, Newsom directed the employees to spend at least four days per week at the office.

The governor said returning employees to the office would result in better and quicker services for residents and add to operational efficiency.

However, the audit found that the state would benefit financially by reducing that to only two days per week and allowing more telework. Departments and staff also reported that remote work did not hurt productivity.

Newsom disputed the cost savings and other audit findings.

According to Newsom’s office, the audit is not scientific and doesn’t paint a complete picture of the state workforce or the benefits of working in person, spokeswoman Tara Gallegos told The Epoch Times in an email.

“While we appreciate the auditor’s time in collecting this information, we respectfully disagree with the auditor’s findings, which are based on estimates and, as noted throughout the audit, hypothetical theories and incomplete information,” Gallegos said.

California could save up to $225 million each year and reduce office space by about 30 percent if workers came into the office only two days per week, State Auditor Grant Parks reported.

“Teleworking can generate significant savings in office space because it allows departments to reduce the number of workstations by implementing desk-sharing programs and therefore reduce needed square footage,” Parks said.

By increasing the in-person work mandate to four days per week, Newsom “largely eliminated” the potential for office space savings because the state then needed to provide dedicated workstations for all eligible employees who were in the office for more than half of the week, according to the report.

The state also needed to find more office space to accommodate all workers who may eventually return to the office. As of June, however, the state had not yet determined how much space it would need, the auditor found.

Parks said Newsom could have also “made better use” of information about departments’ office space needs and the costs associated with office space before directing state employees to return.

The state spends about $765 million each year on state-owned properties and state-managed leased properties.

The audit found that the state paid $117 million for unused office space from July 1, 2024, to June 30, 2025. In all, 3.2 million square feet of office space—nearly 60 percent of the state’s office space—was unused during that time.

The California State Capitol in Sacramento on Feb. 1, 2023. (Justin Sullivan/Getty Images)

When asked for data used in its decision-making process to restrict telework, the governor’s office provided the auditor with articles that suggested face-to-face interactions in the workplace could improve productivity and lead to happier employees.

Those who responded to the auditor’s survey reported that telework was effective and could benefit departments and workers by lowering costs and improving recruitment and retention without negatively affecting productivity, collaboration, or service, according to the auditor.

The auditor recommended that the state Legislature amend state law to require departments to identify positions that can successfully telework three or more days per week. The law should then require the departments to consolidate space in state-owned buildings and stop leasing space in other buildings.

Newsom’s office will take the audit recommendations into account in the future in managing the state workforce and facilities, according to Gallegos.