$4.1B state courts budget includes funds for backlogs

Gov. Gavin Newsom unveiled a surprisingly healthy state budget on Friday, with plenty of good news for the overburdened court system. The proposed budget sets aside $4.1 billion for courts, with $2.2 billion going to trial court operations.

"The governor's proposed budget for the judicial branch is welcome news," said Chief Justice Tani G. Cantil-Sakauye in an emailed news release. "It is careful and cautious, but also reflects his concern for those trying to access our court system during a pandemic. I commend his leadership during a difficult time for our state and country."

The release went on to note: "The budget includes $381.1 million in new funding, including critical new investments to support the essential services provided by the judicial branch during the COVID-19 pandemic." These strong numbers come a year after courts lost $200 million when Newsom was forced to close a multi-billion- dollar shortfall in last year's budget.

"I was standing right here less than one year ago presenting the 2020-2021 budget," Newsom told a small, socially distanced crowd in an auditorium at the Secretary of State building in Sacramento. "My, has so much changed."

But one thing hasn't changed: California's reliance on taxes on people with higher incomes, including capital gains taxes driven by the state's thriving technology sector. Unlike some previous recessions, this group has continued to do well, especially as higher-income professionals were able to work at home. The financial pain of the current crisis has fallen disproportionately on lower-income workers in the service economy. The result has been a budget with $34 billion in surplus and reserves, even during a recession and 8% unemployment.

With that pain in mind, the budget includes funds for struggling workers and businesses. Sen. Thomas Umberg, D-Santa Ana, praised Newsom for including a proposal he made last month in the budget: setting aside $70.6 million for fee waivers to individuals and businesses most affected by the pandemic. This group includes everything from bars and restaurants to cannabis dispensaries, barbers and many other businesses that pay licensing fees.

It could also help head off a series of lawsuits by businesses who claim they shouldn't be forced to pay these fees when they are prevented by the state government from opening their doors. Umberg, who was named the new chairman of the Senate Judiciary Committee last month, put forward the idea in a bill, SB 49.

"This announcement from Governor Newsom represents not only good policymaking, by providing support to businesses who need it, but also a return of fairness in law," Umberg said in a news release.

The budget also contains millions for a series of efforts that were underway before the pandemic, but which were made more urgent by the shutdown of courts. These include $19.1 million for self-help services for unrepresented litigants and $12.3 million to expand the use of an ability-to-pay tool which allows low-income people to seek relief from fines and fees they cannot afford to pay. Another $55.7 million will backfill declining fines and fee revenues to courts.

An additional $2.1 billion over five years was earmarked for 14 court construction projects. Nearly $75 million would be spent during the current budget year, helping boost the total courts budget to $4.2 billion, according to a budget memo shared by the Judicial Council.

Courts will also get $72.2 million to help handle the backlog of cases that have built up during the pandemic. The Consumer Attorneys of California put out a cautiously optimistic statement on the budget, but asked for more help for civil courts.

"It is helpful that the governor has proposed special funds to reduce the criminal backlog, but at the same time it is critically important that civil litigants be given an opportunity for their day in court," said Consumer Attorneys of California President Deborah Chang.

Another $11.7 million will be used to help courts deal with a backlog of unlawful detainer cases caused by a moratorium on filing and adjudicating them.

During his remarks, Newsom said he would work with the Legislature to extend a ban on evictions for late rent that will run out at the end of this month. A pending bill, AB 15, would extend this ban to the end of the year.

The budget sets aside $31.4 million for cleanups of homes and other sites near the Exide Technologies battery recycling plant outside Los Angeles. The state's hopes of recovering additional money from the company were dashed in October when a federal court approved Exide's bankruptcy plan. Newsom said toxic waste cleanup will continue to be a drain on the budget going forward.

"How many other Exides do we have?" Newsom said.

Whoever Newsom names to succeed Attorney General Xavier Becerra will also have plenty of money to work with. The Department of Justice will receive $1.1 billion, by far the largest budget of any state attorney general in the country. Becerra has been named by President-elect Joseph Biden as his choice for secretary of health and human services.

Much of this funding reflects new tasks the Legislature has been putting on the Justice Department's plate in recent years. For instance, it will receive $13 million to investigate officer-involved shootings under the terms of AB 1506, signed last year.

Other money will go to forensics, firearms enforcement, studying a proposal to pay reparations to black descendants of slaves, and funds to investigate health care cases. Another $1.9 million will go to help the department develop a database relating to the effort to phase out the Department of Juvenile Justice. That plan still continues to worry some in law enforcement.

"The closure of DJJ by June 30, 2023 negatively impacts our ability to be ready to serve those youth who have the highest needs and most trauma," said Chief Probation Officers of California President Chief Steve Sentman in an emailed statement. "We stand prepared to work closely with the state and all partners to minimize disruption for youth and establish the best programming and environment to help our youth transform and ultimately leave the system permanently."