Ignore court funding at your peril
By Sen. Joe Dunn
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Senator Dunn |
It is 2 p.m. on a Wednesday afternoon in October 2004, and half of the trial
courts across the state are dark. Civil cases are not being heard. Clerks' offices
are closed. Court staffs are reduced to part-time or have been furloughed. Morale
is at an all-time low. Some did not believe it would really come to this. How
could this have happened to the co-equal third branch of government?
Here's how. Let's begin with some history. California was faced with an unprecedented
$38 billion budget deficit for the budget year 2003-04, running from July 1,
2003, to June 30, 2004. Many Democrats were struggling to save critical programs
and services and many Republicans were refusing to raise taxes.
As a result, the ultimate budget resolution was a convoluted mix of unwelcome
cuts, extensive borrowing, deferred payments and short-term fixes. It also included
a continuing $8 billion "structural deficit" which means the state's
budget would spend $8 billion more next year than it brings in in revenue.
Now, let's turn to this coming year. Start with a $100 billion annual California
state budget and the $8 billion structural deficit going into the 2004-05 budget,
then:
- Subtract $29 billion in special funds and bonds from the $100 billion that
can only be used as earmarked. For example, gas taxes go into a special fund
to pay for transportation projects and cannot be used to balance the budget.Voter-approved
bonds to build schools cannot be diverted to balance the budget. That leaves
$71 billion of the original $100 billion in which $8 billion in savings must
be found.
- Subtract another $32 billion from the $71 billion for K-14 (kindergarten
through community college) funding promised by Proposition 98, a 1988 addition
to the state constitution that established a minimum funding guarantee for
K-14. It is political suicide for legislators to return to their districts
having supported cuts to education. That leaves $39 billion in which to find
the savings.
- Subtract another $13 billion in federally mandated minimums (bare bones
minimum funding) from the $39 billion for health and welfare programs, such
as Medi-Cal, Healthy Families and services for the aged, blind and disabled.
For every dollar we cut in these programs, the state loses between $2 and
$3 in federal matching funds, which would only make the deficit worse. That
leaves $26 billion in which to find the savings.
- Subtract another $4.5 billion from the $26 billion, which is mandated by
court order or federal requirements for developmental disabilities and mental
health services, including such things as in-home care for the elderly. That
leaves $21.5 billion in which to find the savings.
- Subtract another $6 billion from the $21.5 billion for corrections, law
enforcement and fire protection. It is also politically problematic for legislators
to return to their districts having supported cuts to these services. That
leaves $15.5 billion that is not legally or politically obligated to be spent.
- That $15.5 billion is where the courts' budget comes from, along with many
other state agencies, departments and functions. But $15.5 billion is not
the end of the story. Remember we are starting with an $8 billion structural
deficit.
- Add $4 billion to the deficit in lost revenue resulting from Gov. Schwarzenegger's
rescission of the vehicle license fee increase, also known as the "car tax."
This money goes to local governments to pay for police and fire protection
local services that are funded by state dollars. That raises the deficit
to $12 billion.
- Add a $2 billion pension obligation bond that the legislature tried to borrow
to pay the state's pension payments obligation, but a court recently ruled
the bond needs voter approval and voided the bond. That raises the deficit
to $14 billion.
- Add from $2 billion to $11 billion in additional bonds to pay for last year's
budget deficit that the courts may hold invalid. That raises the 2004-05 budget
deficit to between $16 billion and $25 billion.
Now, we have $15.5 billion in discretionary funds, which includes the courts'
and other budgets, in which to find $16 billion to $25 billion in deficits.
Where do we secure any much less adequate funding for the courts
with a deficit this huge? Plus, not only do we have a negative balance, but
what is outlined above does not include funding for state operations, the legislature,
the governor and many agencies. And remember, the courts took substantial cuts
this past year and had to swallow new and increased fees to make up for the
shortfall caused by the cuts.
Gov. Schwarzenegger has reportedly assured the chief justice that he recognizes
the importance of the judicial branch. However, there is no money on the table
and let's be frank: the courts do not stand a chance of being fully funded when
the alternative choice is funding firefighters, police officers, mental health
clinics, children or the elderly.
Lawyers, judges, court employees, administrators this is a call to arms
ignore it at your peril. We are facing a struggle for our very survival.
It is going to take all of us all we can do to mitigate the coming devastation
of the courts' 2004-05 budget.
What should you do? Educate yourselves and your colleagues. Get involved; do
not be complacent. Participate through your local and statewide bar and lawyer
associations in forming coalitions to strongly advocate for the courts with
all members of the legislature. Be there whenever you are called upon to act.
This year, when you hear the courts' budget is in serious jeopardy, think about
that day next October when the courthouse doors are closed and many staff have
been laid off. It could happen. It could happen soon.
Sen. Joe Dunn, D-Garden Grove, chairs the Senate Budget Committee's
subcommittee #4 on Legislative, Executive, Judiciary, Transportation & General
Government.
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