Lawmakers press administration over $20 million Boston Consulting Group contract
March 18, 2026 | California State Assembly, House, Legislative, California
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Lawmakers used the subcommittee hearing to press the Department of Finance and CDCR about a $20 million contract with Boston Consulting Group (BCG) meant to identify operational savings. Multiple members said the contractor's projected savings have eroded substantially and that the legislature has not received adequate updates or work product.
"$20 million is so excessive," Assemblymember (speaker) said during questioning, summing up a sentiment echoed by colleagues who called for the contractor to appear before the committee. Anthony Franzoa of the Department of Finance said the contract was executed with an exemption intended to speed work and that BCG has been coordinating across divisions including adult institutions, parole operations and workers' compensation. He acknowledged the near‑term savings figure would be revised downward in the May revision but defended the contract's purpose: "The goal was ultimately to achieve long term sustainable savings," he said.
Several committee members called for clearer deliverables and quarterly reporting if the contract continues, and some asked the legislature to reassess the contract at the May revision or consider terminating it in part or in full if performance does not justify the cost. The Legislative Analyst's Office recommended the legislature use the lead time before the May revision to probe BCG's work, its expected benefits, and whether similar savings might be achieved by state staff.
Why it matters: The contract was intended to produce large savings against a modest up‑front cost; legislators said they need evidence of progress and a public accounting of proposals being implemented to judge whether the contract delivered value for taxpayers. Several speakers noted legal or fiscal exposure could accompany contract termination and asked DOF to provide more details about contract scope, alternatives considered and performance measures.
Next steps: DOF said more details will be available in the May revision; LAO urged quarterly legislative updates if the contract continues.
"$20 million is so excessive," Assemblymember (speaker) said during questioning, summing up a sentiment echoed by colleagues who called for the contractor to appear before the committee. Anthony Franzoa of the Department of Finance said the contract was executed with an exemption intended to speed work and that BCG has been coordinating across divisions including adult institutions, parole operations and workers' compensation. He acknowledged the near‑term savings figure would be revised downward in the May revision but defended the contract's purpose: "The goal was ultimately to achieve long term sustainable savings," he said.
Several committee members called for clearer deliverables and quarterly reporting if the contract continues, and some asked the legislature to reassess the contract at the May revision or consider terminating it in part or in full if performance does not justify the cost. The Legislative Analyst's Office recommended the legislature use the lead time before the May revision to probe BCG's work, its expected benefits, and whether similar savings might be achieved by state staff.
Why it matters: The contract was intended to produce large savings against a modest up‑front cost; legislators said they need evidence of progress and a public accounting of proposals being implemented to judge whether the contract delivered value for taxpayers. Several speakers noted legal or fiscal exposure could accompany contract termination and asked DOF to provide more details about contract scope, alternatives considered and performance measures.
Next steps: DOF said more details will be available in the May revision; LAO urged quarterly legislative updates if the contract continues.
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