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LAO urges limited-term review of CDCR lump-sum payout request; DOF favors ongoing funding for stability

Senate Budget Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor and Transportation · March 12, 2026
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Summary

CDCR asked for $91 million ongoing to cover payouts for separating correctional officers and nurses; LAO recommended limited-term approval with reporting to ensure transparency and to reassess as vacancy savings change, while Department of Finance argued ongoing funding aids planning.

The Department of Corrections and Rehabilitation requested $91 million in ongoing funding to cover annual lump-sum payouts to separating correctional officers and nurses for unused leave credits, an expense CDCR said was historically paid from vacancy salary savings.

"The department is requesting $91,000,000 ongoing for correctional officers and nursing staff separating from state employment and requiring payment for unused leave credits," Cynthia Mendoza, deputy director of CDCR's Office of Fiscal Services, told the committee. She said reductions in posted positions and a lower vacancy pool have reduced the salary-savings source that previously funded these payouts.

The Legislative…

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