Assembly subcommittee presses CDCR on BCG savings shortfall, calls for details and prison‑closure analysis

Lawmakers at the Assembly Budget Subcommittee No. 6 pressed the California Department of Corrections and Rehabilitation after the department and outside consultants revised down previously announced savings from the Boston Consulting Group (BCG) review.

Assemblymember Schultz said the initial figure — $635 million in ongoing out‑year savings cited earlier during the BCG work — has fallen to about $116 million in the May Revision, calling the shortfall "a substantial shortcoming." "We sold a bill of goods that gave a lot of promise," Schultz said, asking CDCR and the administration to share BCG recommendations with legislative staff so lawmakers can judge what was adopted and what was not.

CDCR officials and Department of Finance representatives told the subcommittee the original estimates were preliminary, based on high‑level analysis; deeper work and real‑world constraints reduced achievable savings. CDCR said some reductions reflect work already completed or adjustments that proved infeasible, and that ongoing commitments (workers' compensation regionalization, reentry supports, and health/rehabilitation investments) drive changes in the department's budget profile.

The Legislative Analyst's Office urged the Legislature to consider closing an additional state prison to capture over $100 million annually in ongoing savings, a recommendation several public commenters and subcommittee members also supported at the hearing.

Members also pressed for continued funding of community‑based programming: public speakers and advocates told the subcommittee to preserve or expand the RITE/right grant and reinvest savings from closures into programs that reduce recidivism.

What happens next: CDCR and Finance were asked to provide more of the BCG materials, implementation detail and the timeline for when the subcommittee can expect to see that information ahead of budget votes.