CDCR plans another prison closure, $125 million placeholder for consultant-driven efficiency savings

The California Department of Corrections and Rehabilitation (CDCR) presented May revision requests and an outline of larger budget solutions that include a planned prison closure and a consultant-supported efficiency effort.

Deputy Director Cynthia Mendoza told the subcommittee CDCR proposed reappropriations for roof repairs ($112.8 million previously appropriated), fire alarm replacements at the Substance Abuse Treatment Facility and Solano State Prison (multi-year funding requests), and near-term funds for fire-watch operations. CDCR also requested funding to align resources for state implementation of CalAIM-related medical initiatives and described plans to close another prison by October 2026; the agency said no facility had been selected yet and that staff and population impacts would be mitigated.

The Department of Finance said it contracted Boston Consulting Group for a three‑month engagement to identify operational efficiency opportunities across large general‑fund departments and is proposing a $125 million one‑time placeholder tied to CDCR efficiency efforts, with the administration projecting larger ongoing savings in later years. LAO analysts and members questioned feasibility; Assemblymember Macedo and Vice Chair Hlachy asked how CDCR would realize the large projected savings and whether these outside-contractor proposals overlapped work state staff can do.

LAO also recommended caution on withdrawals of ADA facility-improvement funding and on postponing a radio replacement; the office noted those delays could increase legal risk or safety concerns. CDCR acknowledged the radios and ADA projects remain priorities but said the May revision delays those items because of budget constraints. The department also described a request for a $125 million placeholder in 2025–26 for a modernization/efficiency program and an expectation that consultant work would identify more than $600 million in ongoing savings by 2028–29 as part of a combined effort involving consultants and potential implementation contracts.

Public commenters expressed concern about spending to hire outside consultants during a tight budget year. One commenter said hiring consultants to find savings “is the very definition of responsible spending” and questioned whether the department could instead implement existing recommendations. The subcommittee asked for more specificity on projected savings benchmarks and reporting and to provide cost and savings details before final enactment of these proposals.