Above: Marx Gutierrez is SEIU 1000’s Political Coordinator. Photo courtesy Marx Gutierrez.

By Erik Skindrud, InfoWise.org

California Gov. Gavin Newsom’s quest to return close to 100,000 workers to offices four days a week is looking less sustainable as the state’s budget trends into negative territory.

In January 2025, Newsom saw California sporting a $363 million budget surplus for fiscal year 2025-26. But fires, tariffs and legal battles with the federal government have taken their toll. In November, the state’s Legislative Analyst’s Office forecast an $18 billion deficit this year. The number may balloon to $35 billion annually by FY27-28, the LAO report states.

In August, an audit requested by Assemblymember Josh Hoover (R–Folsom) and other telework allies found that keeping work-from-home at three days a week would save the state $225 million annually. Savings would likely add up beyond that as well.

The deficit is shifting the conversation on Gov. Gavin Newsom’s unpopular return-to-office order, building momentum for unions that represent California state workers. News reports and statements by union representatives see the development strengthening the union hand at high-stakes negotiations that will decide the fate of telework this year.

The deficit is shifting the conversation on Gov. Gavin Newsom’s unpopular return-to-office order, building momentum for unions.

“(These) budget problems point again to the benefits of telework,” Ted Toppin, executive director of Professional Engineers in California Government, told the Sacramento Bee in December.

“Take the win,” Toppin urged Newsom. “Reduce congestion and emissions, (and) prevent the need to build out hundreds of thousands of square feet of office space to house employees that can do their work from home, (as they) have done successfully for five-plus years.”

InfoWise.org asked SEIU 1000 Political Coordinator Marx Gutierrez about the union’s strategy in the months leading up to negotiations this spring. SEIU Local 1000 is one of the largest labor unions in the state, representing close to 96,000 state employees.

Question: from Erik Skindrud, InfoWise.org.

“We’ve been told at my state agency that the governor’s ordered return to office will take place in summer of 2026. This is going to really impact my life, costing me more time, money and energy during the workweek. But I hear it’s a done deal and we can’t do anything about it.”

Response: from Marx Gutierrez, SEIU Local 1000 Political Coordinator. 

“First, let me say that for all things pertaining to bargaining, which telework falls under, members should stay close to their bargaining unit chairs. These amazing folks are the ones who will sit across the table from the State and defend all our hard-won benefits and working conditions this year, 2026. Folks can find updates from the bargaining team at www.SEIU1000.org

“The Governor’s Return to Office Order is not a ‘done deal.’ I’m in the political department, so my perspective is very ‘big picture.’  This year has two major events that will affect both RTO and the rest of bargaining:  SEIU Local 1000’s 2026 contract and the 2026 election of California’s governor, constitutional officers and legislators, as well as the national midterm elections.   

What happens in the street affects the (bargaining) table.

“First let’s talk about bargaining.  The reason we have a side letter regarding RTO is that the Union’s members mobilized to actions, lobbied members of the legislature, testified at budget hearings and educated stakeholders on the how telework benefits Californians even if they don’t work for the state. We made the case that since the state was facing a budget deficit, RTO was a poor use of public dollars. We made the case to those concerned with traffic, lack of parking, and pollution — that telework is part of the answer to all these issues. In 2026 we need to keep winning the argument that it’s not just good for us, it’s good for all Californians and all California taxpayers. We need to build this context to set up our bargaining team — because what happens in the street affects the table.  

“Next, a little on the election. We must elect a pro-state-worker governor, legislature and congress. With so many priorities, it’s important that the new governor and legislators see us as a priority and not a way to balance a current or future fiscal crisis. If we want a real chance at securing telework and other benefits, we need to play a key role in this election. Some of these key races may effectively be decided in the June Primary. So it will be important for us to get politically active right now as we are also bargaining our contract in the spring — and we want to finish strong in November election.  

“If we disengage from bargaining and disengage from the election, then we’re setting ourselves up to lose. On the other hand, if we step up and win both, we will affect the 2026 bargaining table and our future (bargaining) tables.” 

Los Angeles-area state employees whose positions are represented by SEIU 1000 are invited to attend an informational meeting on telework, contract negotiations and other issues at 7 p.m. on Monday, Jan. 26. Attendance is via Zoom. State workers are invited to register here.