By Sarah Hernandez
The California Capitol Annex overhaul is entering its most expensive phase as lawmakers quietly shift leadership while construction moves from the outer shell to interior work. The project continues under scrutiny due to rising costs, past legal fights and ongoing concerns about transparency, with a new fiscal outlook expected in early 2026.
In January, the Legislature’s Joint Rules Committee approved Gilbane Building Company as the new owner’s representative, replacing MOCA Systems. Gilbane will manage the final stage of construction and coordinate the eventual move back into the Annex, according to Fox40.
As noted by the California Legislature in a December 2025 construction update, the Annex is roughly 50 percent complete. The exterior structure is up, and crews are working on the glass façade, interior wall framing and the parking garage. According to that same update, about $518.7 million had been spent through September 2025, and the target completion date for the new building and garage remains fall 2027. In other words, Sacramento’s biggest office renovation is only halfway done and already deep into the nine-figure range.
Local reporting and watchdogs say the total price tag has ballooned well beyond early estimates, with later budgets and public documents putting it in the neighborhood of $1.1 billion. KCRA has documented residents’ frustration over how little information has been released, the use of nondisclosure agreements and eye-catching expenses such as imported stonework.
Supporters of the current financing approach argue that paying as they go and avoiding bond debt will spare taxpayers long-term interest costs. Critics counter that, at this price point, the new manager’s upcoming fiscal review is the real stress test for the project and for the Legislature’s appetite to keep writing checks.
The Joint Rules Committee has said the incoming project manager, expected to be fully on board in early 2026, must produce an updated fiscal outlook that takes into account litigation costs, pandemic-era supply chain problems and inflation. If Gilbane formally assumes the role, it will be responsible for coordinating finish work, security features and the logistics of bringing legislative offices back into the Annex once the building is ready.
MOCA Systems had guided design and preconstruction work since 2018, and its contract wrapped up at the end of 2025, according to the Legislature’s update. Gilbane is stepping in as the project shifts from planning and structure to the more detailed and often cost-sensitive interior build-out.
The Annex project was slowed by nearly four years of litigation that concluded in early 2025. After the court battles ended, lawmakers moved to speed things up by limiting some environmental review that opponents argued should have been revisited under state law. The Los Angeles Times reported on the California Environmental Quality Act exemption and the controversy it stirred among preservation and environmental groups.
Neighbors have not needed a press release to know something big is happening. Dozens of trees have been moved into an on-site nursery, and portions of Capitol Park remain blocked off while the heavy machinery does its work. CapRadio reported that residents say the project is clearly visible around the park but that day-to-day disruption has been manageable so far. Public tours are limited, both for safety and to keep crews moving without too many detours.
What to watch next is the new manager’s fiscal outlook, expected in the coming weeks, which will offer the sharpest signal yet on whether the Assembly and Senate’s roughly $1.1 billion allocation is enough. KCRA notes that lawmakers still say the project is on track for a fall 2027 finish, but that next budget snapshot will show whether they need more money, more time or both.
