CDCR seeks $91 million for lump‑sum leave payouts as lawmakers press for oversight

The Department of Corrections and Rehabilitation asked the Assembly Budget Subcommittee No. 6 for $91,000,000 in ongoing funding to pay lump‑sum leave cashouts for separating correctional officers and nursing staff, a fiscal request CDCR said is driven by a decline in the vacancy savings that historically covered those payouts.

"The department requests 91,000,000 ongoing for correctional officers and nursing staff separating from state employment and requiring payment for unused leave credits," Cynthia Mendonza, deputy director in CDCR’s Office of Fiscal Services, told the committee, saying reductions in position authority and fewer vacancies limit the salary savings CDCR historically used for those payments.

The Legislative Analyst's Office outlined the broader budgeting practice of relying on salary savings to pay such obligations and recommended a limited‑term funding approach paired with reporting so the Legislature can reassess in a future year. "We recommend approving the funding on a limited term basis and then requiring the department to report certain data toward the end of that limited term period," Caitlin O'Neil said.

Department of Finance officials argued that leave liabilities are ongoing, legally required costs governed by CalHR and collective bargaining, and that providing ongoing funding would give CDCR budget certainty. DOF also noted a Boston Consulting Group review of CDCR operations that is concluding and said administration efforts aim to identify structural efficiencies.

Committee members pressed for specifics about how lump‑sum payouts operate and whether employees can be required to use leave to reduce liabilities. CDCR said leave buybacks are voluntary and provided historical payout figures: in 2021 roughly $45,000,000 and in 2023 about $19,000,000. CDCR also reported that overall staff have accrued about 21,300,000 hours of leave, roughly half (about 10.5 million hours) among BU‑6 employees, and that average accrued hours across all 58,000 staff would be about 461 hours.

Why it matters: the committee must weigh how to fund legally required leave liabilities, balance transparency and oversight, and avoid shifts that could affect public safety operations if other CDCR programs are reduced to cover payouts.

The subcommittee took no votes; members requested additional data and the LAO and DOF will continue to refine recommendations for the May Revision.