State’s courts, presciently, didn’t count on extra federal funds

State's courts, presciently, didn't count on extra federal funds

An Oct. 15 deadline written into the California state budget has come and gone without additional federal stimulus money. Had additional federal funds arrived, the courts system could have seen the restoration of $150 million in cuts.

Judicial Council spokeswoman Merrill Balassone said the branch has restricted hiring, instituted one furlough day per month and made other cuts.

"When allocating the judicial branch funding provided in the state budget, the Judicial Council did not assume any further federal funding would be coming," she said in an email.

According to H.D. Palmer, deputy director for external affairs for the California Department of Finance, federal money could still help the budget even if it doesn't come for weeks or months.

Palmer said budget planners based the Oct. 15 deadline on "a reasonable assumption about when Congress would conclude its work for the year."

"There wasn't any magic or cosmic significance to the 15th other than we had to lay down a marker," Palmer said. "The governor has been working very hard to encourage federal relief."

Gov. Gavin Newsom's January proposal for the 2021-22 state budget will also include updates to the current fiscal year, he added. It's also important to remember the administration drafted the budget to add money back in if federal support comes, Palmer said.

"This does not mean a new round of state budget cuts is in the offing," he said.

Meanwhile, revenues during the two months of the new fiscal year in July and August were $4.5 billion higher than projected, though Palmer also warned it's important to keep in mind the pandemic could also drive up state spending. The California state fiscal year begins July 1.

Palmer rejected accusations the state is asking for a bailout.

"We've done everything right," Palmer said. "We came into this with a balanced budget, a record reserve and budget surpluses for the foreseeable future. In January we were looking at a $6 billion surplus. Because of the recession we ended up having to close a $54 billion gap."

-- Malcolm Maclachlan