$150M cut in state courts without federal aid

California court funding will be cut $150 million if extra federal aid is not provided, according to a source close to the legislative leadership that announced a budget deal with the governor Monday.

Neither the announcement, nor an hour-long news conference by Gov. Gavin Newsom, yielded details of the agreement, which must be finalized and signed by the end of the month. But the source confirmed the "trigger" courts cut as the state attempts to address an estimated $54.3 billion deficit.

While an agreement has been reached, the legislative leaders and the governor are still "ironing out" the details, a source in the Legislature said Monday. More details are expected to emerge later in the week. The source declined to speak on the record but said the information on the court budget was part of the agreement.

A spokesperson for the Judicial Council said it has not seen the official budget agreement and cannot comment at this time.

"The COVID-19 global pandemic has caused a sudden and dramatic change in our nation's and state's economic outlook -- and has had a cascading effect on our state budget," the joint statement read. "California was better positioned for this sudden change than at almost any time in its history, building out record reserves following years of responsible budgeting. Even still, the size and scope of the pandemic and the accompanying economic crisis have been unprecedented -- leaving California to make hard choices and figure out how to sustain critical services with much less."

The Legislature's budget proposals prior to Monday's announcement made fewer cuts to the courts than Newsom's $283.3 million cut proposed last month.

The Legislature's proposal included several trigger cuts like the one to court operations, which would kick in unless the federal government offers additional aid to states.

While many in the Capitol have said federal aid is unlikely to arrive in California, considering that President Donald Trump has threatened to cut funding to the state on numerous occasions, a statement released by Assembly Speaker Anthony Rendon, D-Lakewood, earlier this month was more optimistic. Acknowledging "the strong likelihood of additional federal relief," the joint legislative plan would use reserves to avoid over-cutting now, while still keeping reserves on hand for the future, said the statement from state Senate and Assembly leaders.

In a teleconference earlier this month, Los Angeles County Superior Court Presiding Judge Kevin Brazile urged the legal community to "hold the line" on budget cuts to the judiciary. Brazile addressed bar leaders, asking them to call on the Legislature to make no an additional cuts after the May proposal. It included a 10% reduction to the 2020 judiciary budget and a 5% cut to the 2021 budget.

"Those are steep cuts, so we're going to need your help," Brazile said at the teleconference. "Our leaders, all the members of the bar organizations, when I say, 'Hold the line,' I mean, no more cuts. We've been talking to the Legislature. ... We are going to be calling on you, as we have in years past."

"All the budget plans being discussed acknowledge the possibility that more difficult cuts will be necessary, due to COVID spending needs and weak revenues," the statement released by Rendon said earlier this month. "This will be especially true if Washington, D.C. doesn't step up. The Legislature is prepared to work closely with the governor to achieve California's goals. That's how, over the past decade, we built the large budget reserve that now helps us face the fiscal crisis."