Gavin Newsom on bringing state workers back to offices: ‘We want to get it done’
Gov. Gavin Newsom reaffirmed his decision to call state workers back to government offices during his final budget revision presentation Thursday, appearing exasperated that his employees are still resisting a four-day, in-office requirement.
“While I’m empathetic to change, we’ve been previewing this for years now, and we want to get it done,” Newsom said.
He reiterated his central motivation for requiring state employees, many of whom are primarily working remotely, to come into government offices and collaborate more with coworkers starting in July.
“’Nice to see you again, nice to run into you in the hall, nice to develop a relationship,’” he said, mimicking would-be interactions between colleagues who are back in the office. “I just think that’s important, most employers do as well.”
Earlier this week the governor directed state agencies to prepare for workers to be back in offices this summer after six years of telework. The return-to-office order was delayed one year last summer in exchange for unions agreeing to cuts to California’s payroll costs that were designed to help the state resolve a $12 billion deficit.
Between last May and June, the administration negotiated with the state’s 21 bargaining units to suspend some retirement contributions and personal leave programs, some of those concessions continue into 2027. Those tactics helped the government save roughly $800 million in employee compensation costs.
Newsom touted California’s improved financial footing on Thursday but when asked if he planned to bring unions back to the bargaining table, the governor said his administration plans to maintain the “status quo.” He added that the issue would best be resolved by the next governor.
One union to get a new contract
Some state employees will get a new contract this year. SEIU Local 1000, which represents nearly 100,000 state employees, is actively negotiating with California’s labor representatives. But the other 12 bargaining units, represented by other unions, will not see an immediate benefit from Newsom’s balanced budget until they go back to the bargaining table in 2027.
“Today, the governor talked a lot about how stable California’s finances are,” Anica Walls, SEIU Local 1000’s president, said. “State workers are hearing that and wondering if the state is doing so well, why are workers still being told they can’t get wages that keep up with the cost of living?”
Walls said California’s stable finances are proof that the state can afford more substantial salary increases for workers who deliver essential public services. The governor’s budget proposal includes a $307 million increase to employee compensation costs in the coming fiscal year.
Newsom touted his commitment to paying down the state’s unfunded liabilities, but some of the state’s financial obligations that were exacerbated by last year’s agreements will continue to grow in the coming year due to ballooning costs to pay for healthcare for retirees and growing vacation leave payouts.
The leave program unions agreed to last year enable state workers to bank more vacation hours, which they can cash out at the end of their civil service careers, often at a higher salary rate. In 2024, California paid $431 million to those leaving state service.
Newsom pushes back on inefficiency critics
A major theme from Thursday’s budget presentation was Newsom’s pushing back against California’s critics who say that his administration is wasteful and inefficient. He said his critics tell him that state government has too many employees.
He argued California’s public sector workforce isn’t as large, relatively, compared to the rest of the country.
“We’re 36 in the nation, number of state employees and local employees. Look who’s in the top: 11 of the top 15 are all red states,” he said, singling out Wyoming as having the highest number of public sector employees per capita.
Under Newsom, the executive branch’s workforce has grown by over 40,000 positions, according to Finance Department records.
The governor pointed to other efforts to make California’s government more efficient, including state hiring reforms, reducing vacant positions and piloting “worker-first AI tools.” Of those artificial intelligence initiatives, the administration has had mixed success: Half of the initial eight proposed are no longer under contract.
This story was originally published May 14, 2026 at 3:23 PM.
