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Budget asks to raise Capital Fellows pay prompt LAO counterproposal for smaller increase and annual COLA
Summary
The governor's budget would raise monthly Capital Fellows stipends from $3,253 to $4,888, funded at about $1.3 million ongoing; the Legislative Analyst’s Office urged a smaller, 10% increase and proposed language for an annual COLA starting in 2026–27.
A budget proposal before the Assembly subcommittee would increase monthly compensation for Capital Fellows placed through the CSU Center for California Studies, and the Legislative Analyst’s Office urged the Legislature to consider a smaller immediate augmentation and a longer‑term cost‑of‑living approach.
What was proposed and why The Department of Finance described a 2025–26 budget request of roughly $1.3 million in ongoing general‑fund support to increase fellow salaries from $3,253 per month to $4,888 per month. Devin Mitchell said the increase is intended to help recruitment and retention for the fellowship programs across state government.
LAO response and recommendation Natalie Gonzalez of the Legislative Analyst’s Office said LAO has concerns with the size of the requested increase and noted the federal regulation the center referenced as a rationale had been vacated. The LAO nonetheless acknowledged fellows face rising costs of living and competition from similar programs and recommended a 10% salary increase instead of the administration’s full proposal. The LAO also recommended provisional language authorizing an annual cost‑of‑living adjustment for fellows beginning in 2026–27 to avoid repeatedly returning to the budget for periodic raises.
Center for California Studies view Leonor Elling, representing the Center for California Studies, said fellows currently earn about $3,253 per month (approximately $18.77 per hour) and that higher pay is important to attract diverse applicants statewide. “We understand our role to be to try to recruit folks that represent the diversity of the state, geographic diversity, ethnic, racial income diversity, first gen,” she said, arguing the current stipend limits the pool of candidates the program can reach.
Next steps The hearing did not result in a vote. The LAO recommendation provides a middle path—an immediate, modest raise and a statutory COLA mechanism—to balance recruitment concerns with the state’s broader fiscal constraints; the subcommittee left the item open for consideration during budget negotiations.
