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Secrecy, Cost Overruns Plague California’s Billion-Dollar Capitol Annex Project
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By CalMatters
Published 4 hours ago on
September 5, 2025

A view of the south side of the Capitol building where construction on the new annex is taking place on April 28, 2025. (CalMatters/Fred Greaves)

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For more than half a decade, advocates of the state Capitol have sounded the alarm about the $1.1 billion Capitol annex project. This venture is a textbook example of how not to run a public works project.

By Richard Cowan

Special for CalMatters

Opinion

All Californians will be affected by its rampant secrecy, nondisclosure agreements, massive cost overruns and the decimation of our treasured Capitol Park. Experts and appointed officials tasked with protecting the historic Capitol building have strongly argued for cost-effective, transparent alternatives that preserve the Capitol’s historic integrity and public access. But every concern was ignored.

For instance, the new Capitol annex will be wider, longer and taller than the historic building it replaces, despite commitments to follow the Secretary of the Interior guidelines for historic properties. The annex’s glass exterior will clash with the original white plaster Capitol, visually overpowering the 1860s landmark.

How did we get here?

In 2018, when the Capitol annex project was expected to cost $500-$750 million, I resigned as chairperson of the Historic State Capitol Commission. I was objecting to documents being withheld, details being hidden and stakeholders — especially the public  — being excluded.

Media Stonewalled About Project’s Costs

Now, hard-hitting exposés, alongside growing bipartisan concerns about open government, show that public conversation is finally catching up. Even the news media has been stonewalled when requesting information about the project’s contracts, costs and access plans.

Californians deserve to know how their money is being spent. Assemblymember Joe Patterson’s push for Assembly Bill 1370, which would prohibit lawmakers from signing nondisclosure agreements while conducting public business, is a step in the right direction.  Hopefully this leads to lifting all NDAs related to this project, allowing citizens to ask questions.

But concerns remain about the Capitol’s most iconic public space: the west steps. For generations, this plaza has been the literal and symbolic stage for civic engagement, where countless Californians from all walks of life have gathered to be heard.

Despite verbal claims that plans for a partially above-ground visitor center have been dropped, current designs still call for digging up the west steps, lawn and plaza. Officials have refused to provide written guarantees these spaces will be protected.

Backdoor Tactics to Dodge Accountability

In fact, the Legislature in June quietly passed a budget trailer bill to avoid providing a written guarantee to preserve the west plaza. It was the second time in three years  they changed state law to advance the project with a last-minute trailer bill. It shows a disturbing pattern of backdoor tactics to sidestep public accountability.

The recent rollback of the California Environmental Quality Act is another nail in the coffin of public review. By fast-tracking politically favored projects and sidelining environmental and historic preservation oversight, the state’s CEQA reforms further erode transparency and deny Californians a voice in decisions reshaping public spaces.

The annex project has unfolded under a veil of secrecy unprecedented in state history. California needs a full, independent audit — one that digs deeper than surface-level accounting — to examine the contracts, scope, budget decisions and financial dealings behind this billion-dollar boondoggle.

Gov. Gavin Newsom and legislative leaders should direct the State Auditor to launch that review and pass legislation that permanently protects the west steps and plaza as a place for public assembly.

Perhaps now, with more eyes on it and more lawmakers speaking out, there’s a chance to change the annex project’s course.  It’s not too late to restore trust, but doing so will take more than statements and symbolic gestures.

About the Author

Richard Cowan is the former chairperson of the Historic State Capitol Commission.

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GV Wire encourages vigorous debate from people and organizations on local, state, and national issues. Submit your op-ed to bmcewen@gvwire.com for consideration.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

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