California's billion dollar Capitol Annex Project at risk of going $98M above budget

Audio By Carbonatix

(The Center Square) - The California Capitol Annex Project is at risk of costing $98 million more than projected, according to documents obtained by The Center Square.

Leaders of the controversial project provided lawmakers an update on its construction timelines and budget projections Wednesday for the first time since December 2025.

The Center Square obtained a memo forwarded to legislators on May 13, 2026.

It states "there has been good progress on the project" despite "significant schedule delays and cost impacts" from the COVID-19 pandemic.

The project, which is being fully funded by taxpayers, was initially projected to cost $1.1 billion. 

"(T)here is a potential risk of $98M in increased project costs beyond the current project budget of $1.1B," according to Gilbane Building Company, the new owner's representative for the Capitol Annex Project.

The projected completion date is October 2027.

Leaders of the project say they "do not intend to request any additional funds from the Legislature."

Critics say the project is slated to create one of the most expensive buildings in the United States, yet it has been shrouded in secrecy with infrequent updates from the Legislature's Joint Rule Committee. Leaders of the committee have withheld records surrounding the project, citing security concerns and nondisclosure agreements.