Committee considers Capital Fellows pay increase; LAO recommends a smaller raise and an annual COLA proviso

The Assembly subcommittee reviewed a budget request to increase compensation for the Capital Fellows employed through the California State University Center for California Studies. Department of Finance testimony said the administration proposes about $1.3 million ongoing to boost monthly fellow pay from $3,253 to $4,888 because program leaders say current compensation hampers recruitment and retention.

The Legislative Analyst’s Office urged caution. Natalie Gonzalez told the committee the federal regulation that initially motivated a larger increase had been vacated but that rising costs of living still support some increase. The LAO recommended approving a 10% salary increase now and adopting provisional language to allow an annual cost‑of‑living adjustment beginning in 2026‑27 to avoid repeated budget requests.

Leonor Elling of the Center for California Studies told the panel the program seeks fellows who represent the state’s geographic and socioeconomic diversity and said the current stipend has been a barrier to recruiting first‑generation and lower‑income applicants.

Committee members asked about comparisons to other fellowship programs and about whether service time should be counted for state employment tenure. The subcommittee left the item open pending additional information and to weigh the LAO’s recommendation.

Ending: The subcommittee deferred action, asking staff for comparators and fiscal options consistent with the LAO’s approach.