California lawmakers still won't say how much their new office building will cost

KCRA 3 News

By Ashley Zavala

California lawmakers overseeing the construction of a new office building for the state Legislature and the governor are still refusing to say how much it will cost taxpayers and have failed to provide the public update they had promised earlier this year.

Construction is underway on the California Capitol Annex project, which, as of 2022, was expected to cost nearly as much as an NFL stadium. Drone video captured by KCRA 3 on Wednesday showed the basic structure of the building appears to be set, and crews are in the process of placing large glass panels along the facade of the building.

Despite the construction unfolding in plain sight, the lawmakers overseeing the project said as of Friday, they still cannot provide an updated cost estimate.

"The project team is analyzing the financial implications resulting from the litigation and related changes in project scope," said Assemblymember Blanca Pacheco, the Democrat who leads the Joint Rules Committee that oversees the project. The lawsuit Pacheco referenced ended October of last year. Pacheco said the project is still on track to be completed in 2027.

The Joint Rules Committee earlier this spring said it would provide a public update on the project, but lawmakers failed to provide one before wrapping up their work in Sacramento last month. Pacheco did not respond to a request for comment on the situation.

California voters did not approve the project, but state lawmakers did. In 2018, Democratic leaders of the Legislature claimed their old Capitol Annex building had too much asbestos and other safety issues. They voted to demolish it and build one that will be about 525,000 gross square feet.

It has been years since project leaders updated the total cost estimate, which, since 2022, has been pinned between $1.1 to $1.2 billion. According to the official Capitol Annex Project website, which hasn't been updated since 2021, the original cost estimate in 2018 for the new office building, parking garage and a west side visitor's center was $543.2 million.

Pacheco confirmed that work on the west side visitor's center has "ceased," but neither she nor anyone else involved in the project has been able to say if that will cut down on the anticipated costs.

The cost estimate doubled as project leaders forced more than 2,000 people to sign non-disclosure agreements that legally forced them to keep broad information about the project secret. Signees include state lawmakers and dozens of government officials.

"I would think if the project were on time and on budget, they would be bragging about it. The fact that they have not come forward should be a warning flag to everyone in California," said Jon Coupal, the president of the Howard Jarvis Taxpayers Association."The politicians seem to be building an edifice to themselves."

When asked if the failure to provide an update to the public is appropriate, a spokesman for Assembly Speaker Robert Rivas echoed Pacheco's statement.

"Our understanding is that the project team is working diligently to analyze the financial impacts of the lengthy litigation, which lasted years, and as that happens construction continues," said Nick Miller, Rivas' communications director.

A spokesperson for State Senate Pro Tem Mike McGuire did not respond to a request for comment. Neither did Gov. Gavin Newsom's office.

Lawmakers have refused to keep the public updated on specific costs or extras thrown onto the project. KCRA 3 has reported some through leaks. That includes the $5.2 million spent to send rocks mined in California and shipped to Italy for finishing, which Joint Rules tried to keep secret. Lawmakers also added a secret hallway system that will allow them to avoid the public while moving through the new building. Legislative leaders have refused to say or provide documentation to show how much that will cost.

Since June, KCRA 3 has been repeatedly submitting Legislative Open Records Act requests for contracts, change orders, financial statements and other documents that could shed light on the overall cost of the Capitol Annex Project. The Joint Rules Committee has repeatedly violated the law or failed to complete the requests. Documents from earlier years of the project show construction managers have been providing monthly forecasts to lawmakers.

"I'm disappointed to hear they aren't ready," said Dick Cowan, the former leader of the Historic State Capitol Commission, who resigned as state leaders moved forward with the project. He was also part of the lawsuit against it that stalled the construction.

"Certainly, they have the information somewhere," Cowan said. "Secrecy, I'm afraid, becomes a habit."