Senator vows to shield courts from massive budget shortfall

California’s fiscal situation keeps getting worse — and this has traditionally been bad news for the courts.

The nonpartisan Legislative Analyst’s Office released new numbers on Thursday, showing a $68 billion deficit, “largely as a result of a severe revenue decline in 2022-23.”

The document had just one brief but ominous mention of the state judiciary: “In facing budget problems of similar magnitudes, the state in the past has made reductions to employee compensation and lowered spending on higher education and the judicial branch.”

“The operative word there is ‘branch,’ not ‘department,’” said Senate Judiciary Committee Chairman Tom Umberg, D-Santa Ana.

Umberg said he will try to persuade his colleagues that they need to defend the core functions of the court system. But he also noted that while the state has been through budget crunches in the past, many of his recently elected colleagues in the Legislature have not.

“There’s no right to the DMV,” Umberg said. “There’s a right to access the courts. The Legislature can’t disable a branch.”

The judicial branch will face the crisis with new leadership. California Chief Justice Patricia Guerrero has been on the job since January. Shelley Current will take over as the new administrative director of the Judicial Council on Jan. 1, more than a year after the retirement of longtime director Martin Hoshino.

In August, 4th District Court of Appeal Justice Marsha G. Slough retired after about four years as chair of the Executive and Planning Committee. The new chair is 5th District Court of Appeal Presiding Justice Brad R. Hill.

“He has lots of experience in budget matters,” Slough said of her successor. “That makes him an extremely excellent choice to chair the executive committee, particularly in this time of flux.”

Slough said most of the over 100 policy committees within the Judicial Council report directly to the executive committee, giving it a broad view of what’s happening across the branch. She served mostly during good budget years, but also had to help guide the courts through the COVID-19 pandemic. Slough noted she was the presiding justice of the San Bernardino County Superior Court when the state was dealing with the previous budget crisis, so she has some idea what he must cope with.

Hill was assistant presiding judge and presiding judge of the Fresno County Superior Court from 2002 to 2004. The state was dealing with another budget crisis following the 2001 recession.

“It’s a daunting number,” Hill said when asked on Wednesday about a $58 billion shortfall projection the analyst’s office released last week. “Hopefully, tax receipts might turn around a bit over the coming months. We just don’t know.”

Instead, the numbers have gotten worse. This is partly because tax receipts from much of the state were delayed by several months under an extension order for people dealing with the damage from severe storms last winter. That revenue, due Oct. 15, has been far less than expected.

“We estimate that 2022‑23 revenue will be $26 billion below budget act estimates,” the new report found. “This creates unique and difficult challenges — including limiting the Legislature’s options for addressing the budget problem.”

The report noted one positive: $24 billion in reserve funds the state has set aside. But those are likely to disappear quickly as California faces a multiyear shortfall.

“We will have a statement once the governor releases his budget proposal next month,” said Judicial Council spokeswoman Merrill Balassone in an email.

Hill noted he has experience dealing with lean times — for instance, in the wake of the 2001 recession.

“I became the assistant presiding and the presiding judge right during one of the worst budget crises,” Hill said. “I had to close outlying courts. We used to have courts in Sanger, Selma and Kerman and Firebaugh.”

Hill has served in various roles on the Judicial Council since 2000. This includes chairing the Budget Committee and the Court Facilities Advisory Committee. He championed cost saving measures such as using “tilt-up construction,” more often associated with malls and big box stores, for some smaller courthouses. He also said that the huge amount of empty retail space across the state presents an opportunity for courts to lease or buy space for traffic or other smaller court facilities.

“We’ve been through a lot of budget crises over the years,” Hill said. “We’re adept at weathering those, but they’re never fun.”

Slough said she knows cuts are inevitable. “When the statewide financial picture is bleak, it’s bleak for all,” she said. “I’m feeling even better about my retirement.”