Governor's budget would raise Capital Fellows pay; LAO recommends smaller increase

The subcommittee heard a proposal to increase compensation for Capital Fellows — early‑career fellows placed in Assembly, Senate, executive and judicial fellowship positions — and a Legislative Analyst's Office recommendation for a smaller increase.

Devin Mitchell of the Department of Finance said the governor's budget includes about $1,300,000 ongoing to raise fellows' monthly salary from $3,253 to $4,888. The Department framed the increase as a recruitment and retention measure: the center told Finance that current compensation was a barrier to attracting diverse candidates and filling placements.

Natalie Gonzales of the Legislative Analyst's Office summarized analysis and proposed an alternative. LAO staff said the federal salary classification rule that precipitated the center's request was vacated, but LAO nonetheless agreed a raise is warranted for competitiveness and inflation. The office recommended a 10% increase (higher than inflation but well below the proposed 50% increase), noting fellows' pay has not been adjusted annually and that a recurring budget request process would be needed for future increases.

Leonor Ailing of the CSU Center for California Studies told senators the current stipend equates to roughly $18.77 per hour and makes recruiting diverse applicants challenging; the center supports a significant increase to recruit candidates who reflect the state's geographic and demographic diversity.

Ending: Senators expressed support for increasing compensation and acknowledged competing fiscal priorities; some said they would weigh the LAO recommendation against the administration's proposal in budget negotiations.