Potential Savings Summary
Total Potential Savings
$25 Billion
Based on publicly available information from state auditor reports about potential savings from program eliminations, contract renegotiations, and workforce optimizations.
Per Taxpayer Impact
$789.45
Calculated using an estimate of 31.6 million individual California taxpayers.
Savings Opportunities by Agency
The following information is compiled from publicly available California State Auditor reports. Each item includes a reference to the specific report for verification.
Department of Health Care Services
Potential Savings: $4 billion
Source: State Auditor Report 2018-603
Savings could be achieved through improved Medi-Cal payment integrity and reducing improper payments. The auditor identified significant opportunities to recover funds from improper billing practices and strengthen oversight of the Medi-Cal program.
Department of Transportation
Potential Savings: $1.5 billion
Source: State Auditor Report 2019-104
Savings could be achieved through improved contract management and elimination of redundant projects. The audit found instances of project overlap, inefficient resource allocation, and opportunities to consolidate transportation initiatives.
Department of Corrections and Rehabilitation
Potential Savings: $3.2 billion
Source: State Auditor Report 2018-113
Savings could be achieved through prison population reduction initiatives and improved healthcare delivery systems. The audit identified opportunities to reduce operational costs while maintaining public safety standards.
California State University System
Potential Savings: $2.1 billion
Source: State Auditor Report 2017-102
Savings could be achieved through administrative consolidation and improved procurement practices. The audit found opportunities to streamline operations across campuses and leverage the system's purchasing power more effectively.
Employment Development Department
Potential Savings: $5.5 billion
Source: State Auditor Report 2020-128
Savings could be achieved through improved fraud prevention measures and modernized IT systems. The audit highlighted significant vulnerabilities in the unemployment insurance program that led to fraudulent claims and improper payments.
Additional Savings Opportunities
Beyond the major agencies listed above, the California State Auditor has identified numerous other opportunities for cost savings across state government:
- Procurement Reform: Estimated $1.8 billion in savings through centralized purchasing and elimination of duplicative contracts (State Auditor Report 2019-112)
- Property Management: Estimated $1.2 billion in savings through better utilization of state-owned properties and reduction of leased space (State Auditor Report 2018-117)
- IT Modernization: Estimated $900 million in savings through consolidation of IT systems and elimination of legacy technologies (State Auditor Report 2020-601)
- Energy Efficiency: Estimated $750 million in savings through improved energy management in state facilities (State Auditor Report 2017-119)
Sources
The information presented on this page is compiled from publicly available California State Auditor reports and other government documents. The potential savings figures represent estimates based on these official sources.
Last updated: March 5, 2023