California’s Telework Mirage: Auditor’s Report Promises Savings, Delivers Smoke
You cannot make this up, the State Auditor asked state workers if they would be more productive working in the office, or at home… Hmmm. What do you think they said?
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What the Auditor And His Team Actually Found
A report released yesterday by California State Auditor Grant Parks hypes remote work’s promise. Examining data from 19 departments across seven state-owned buildings, auditors estimated that under a two-day in-office hybrid model, the state wasted $117 million on 3.2 million square feet of unused space in fiscal year 2024-25. They projected that allowing employees to telework three or more days per week could shrink the state’s office footprint by 30 percent, yielding up to $225 million in annual savings through consolidation or divestment. The report criticizes Governor Newsom’s executive order issued in March mandating four in-office days, arguing it eliminates these opportunities and might require more space. Surveys of departments and employees highlighted benefits like improved recruitment, retention, and work-life balance, with little reported impact on productivity or service quality. Link to full report here.
The Flaws in the Foundation
But the report falls apart when you dig in. While its office space calculations are solid, it misses real evidence on output—the core of any work policy. Instead, it leans on surveys of state workers and managers, who predictably praised telework’s flexibility. What employee wouldn’t cheer working from home? These worker surveys sidestep concrete data like error rates or work completed. A 2023 Stanford analysis found remote workers’ productivity dropped 10-20 percent in creative or collaborative roles due to isolation. Microsoft’s 2021 work trend index noted 54 percent of remote employees felt overworked and disconnected, risking burnout and inefficiency. Without objective data on California’s workforce, the report’s savings claims seem speculative, ignoring how unsupervised home setups might weaken public service quality.
Newsom’s COVID Fumble and Union Strings
This fits California’s pattern. One of Governor Newsom’s biggest missteps was sending state workers home in March of 2020, a move that dragged on too long, as I detailed previously here. California was among the last states to reopen schools, thanks largely to the California Teachers Association pushing for extended closures. Union influence now props up telework, favoring worker perks over fiscal discipline. “This audit confirms what has been apparent for some time: Flexible telework benefits taxpayers, state government, and state employees,” said Ted Toppin of the Professional Engineers in California Government, per CalMatters. Unions like the CTA and prison guards, which donated millions to Newsom’s campaigns per CalMatters, drive costly policies while accountability lags. Just look at Sacramento’s empty downtown—ghosted by teleworkers while taxpayers foot the bill.
Even Newsom Gets It Right—Sometimes
No surprise, Newsom’s team trashed the audit. Spokesperson Tara Gallegos called it “not a scientific study,” based on “estimates and hypothetical theories,” dismissing savings as “unlikely to occur.” Spot on—yet Newsom has not been strong on this issue. He ordered four in-office days to boost collaboration, then bowed to unions like Toppin’s, delaying it for thousands via backroom deals.
The Real Value of In-Person Work
More than dollars, offices spark better results. My good friend David Bahnsen, in his book Full-Time: Work and the Meaning of Life, argues work isn’t just a paycheck—it’s vital for human flourishing. “Work was not valuable because it enabled you to do valuable things. Work was the valuable thing,” he writes. In-person settings foster structure, accountability, and community, countering remote work’s isolation that fuels urban decay and mental health strains. Harvard Business School research suggests a balanced hybrid model with more office time boosts productivity and innovation.
So, Does It Matter?
Returning workers to offices matters—for efficiency, fiscal health, and societal well-being. Remote work’s hidden productivity costs, especially in collaborative roles, often outweigh promised savings. Auditor Parks should shift focus from flawed reports to real oversight, like probing waste in pensions or inefficient programs. Accountability demands facts, not surveys.