Newsom’s Former Chief of Staff Leaves State Payroll With Vacation Cash-Out Amid Federal Case

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Dana Williamson, the former chief of staff to Gov. Gavin Newsom, remained on California’s payroll for weeks after leaving her position and ultimately collected more than $50,000 in compensation tied to unused vacation time, according to state payroll records.

Documents reviewed from the state controller’s office show Williamson used about $30,000 worth of accrued leave to stay on the payroll through Jan. 31, several weeks after officials indicated she had stepped away from her role. When that time was exhausted, she received an additional payout of roughly $22,000 for remaining unused leave hours.

The payments have renewed attention on California’s growing financial obligation related to unused vacation and leave balances held by state employees.

Across state government, the liability for unused leave has climbed dramatically. State records show California now owes employees about $5.6 billion in accumulated vacation and leave benefits. Analysts say the rising total reflects generous accrual policies and inconsistent enforcement of limits that typically cap vacation balances at 640 hours.

Public employees often build up large banks of unused leave during long careers in government service. When they retire or leave their jobs, those hours are paid out based on their final salary level.

Williamson’s situation drew particular scrutiny because she accumulated 462 hours of unused leave in less than two years while serving as the governor’s top aide. Her salary as chief of staff was $19,612 per month.

Some policy analysts say the practice creates significant financial strain on government budgets.

John Moorlach, a policy expert with the California Policy Center and former state senator, noted that many state workers accumulate leave because of demanding workloads, but he said the size of some payouts can be surprising.

“This kind of benefit isn’t something most private-sector workers would ever see,” Moorlach said.

Williamson’s departure from state service followed news that she was under federal investigation. According to the governor’s office, she informed Newsom in November 2024 that she was being investigated and was placed on paid administrative leave until mid-December.

Federal prosecutors later filed charges alleging Williamson diverted $225,000 from a dormant campaign account connected to former gubernatorial candidate Xavier Becerra. Prosecutors also claim she improperly deducted approximately $1 million in luxury purchases, including designer handbags and travel, as business expenses on tax filings.

Williamson has pleaded not guilty.

Her legal case remains ongoing. Court records show a status hearing scheduled for April 16 was delayed after Williamson underwent a liver transplant and because attorneys continue to review extensive evidence in the case.

Her attorney did not respond to requests for comment.

State payroll records indicate Williamson received about $40,000 in standard pay during 2025. Officials said that amount reflected compensation covering her final weeks on administrative leave as well as payments drawn from her accrued vacation time.

Combined with the $22,000 lump-sum payout for unused leave, Williamson received approximately $62,000 in total compensation last year despite no longer actively working.

The situation has drawn criticism from some lawmakers who say the state should reevaluate policies surrounding vacation accrual and payouts.

Assemblymember Josh Hoover, a Republican from Folsom, said the growing payouts highlight a broader issue with how the state manages employee leave balances.

“State workers deserve vacation time, but we should take a close look if these benefits are creating excessive costs,” Hoover said.

In 2025 alone, California paid roughly $453 million in leave payouts to more than 21,000 employees leaving government service. That averages about $20,000 per employee, though some payouts are significantly higher.

State data shows 80 employees received at least $250,000 in leave payouts last year, while more than 1,000 employees were paid over $100,000.

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