Governor Newsom's revised budget cuts $97M from trial courts

Gov. Gavin Newsom's revised budget would cut $97 million from trial courts as the state struggles to deal with a $27.6 billion budget shortfall.

The governor also proposed closing housing units at 13 prisons and further reducing the prisoner headcount by 4,600. This effort -- and his current revenue projections -- might be crushed by the voters this fall by a pair of proposed initiatives. Newsom also repeatedly said he would not raise taxes, barring some unspecified "act of God."

The judicial branch budget emerged nearly unscathed when Newsom unveiled his initial budget draft in January. But those numbers could not stand as revenues continued to worsen. Through the first three months of 2024, tax revenues came in $5.8 billion below what Newsom had projected.

"We understand that the current fiscal climate requires Governor Newsom to accelerate budget cost reduction strategies across all of state government and are concerned about the impact these cuts will have on protecting critical court programs and services," California Chief Justice Patricia Guerrero said in a statement. "The entire state court system remains steadfast in our commitment to preserving equal access to justice for all Californians. I remain committed to working with the Governor's administration and the Legislature as we all work towards a final state budget."

Newsom is also proposing to cut $15 million from Attorney General Rob Bonta's budget. According to a budget summary document circulated by Newsom's office, $10 million will come from the Division of Law Enforcement and $5 million from the Division of Legal Services. The governor's office had not published a detailed breakdown of the budget by press deadline.

These cuts will be ongoing into next year. Newsom noted that the state faces a similar budget in the 2025-26 budget year. He proposed almost $33 billion in cuts, over half of it from one-time spending. The governor shot back at a reporter who asked if he wished he had "done more" when times were good, replying that he set aside $38 billion into the state's rainy-day fund. The budget summary calls for $13 billion in those reserves to be used in the 2024-25 fiscal year.

Newsom, who terms out of office at the beginning of 2027, appeared to be thinking about his legacy as governor -- a time that has seen both boom years with record spending and budget shocks. These include the COVID-19 pandemic and the current downturn in taxes among the state's high-income earners.

"I'm mindful of my sell-by date as governor," he said.

Moments later he said that his years of experience with the state's roller coaster budget cycle had led him to take a new approach.

"This is why I believe we need to have a two-year mindset moving forward," Newsom said. "I think the new normal should be budget plus budget year one."

The new budget proposes to save almost $81 million by closing 46 housing units within state prisons. Newsom has overseen an unprecedented drop in the state prison population, from nearly 130,000 when he took office in 2019 to about 95,000 today. Newsom has moved to close four prisons during his time in office. A report last year from the non-partisan Legislative Analyst's Office found the state could save $1 billion by closing five more. But during his two-hour news conference on Friday, Newsom said it was logistically "easier" to close individual units within prisons.

He also said the move -- and the savings -- could be undercut if voters pass a criminal justice initiative in the fall. The Homelessness, Drug Addiction, and Theft Reduction Act would make it easier to charge thieves as felons--revising some of the changes made by Proposition 47 in 2014 -- and for prosecutors to seek longer sentences for repeat offenders.

"There are proposals to roll back some of our criminal justice reforms that would have a significant impact," he said.

Newsom also mostly deflected a question about the Taxpayer Protection Act. It would make it more difficult to raise taxes and fees, including requiring a two-thirds vote of the Legislature to raise taxes. The California Supreme Court heard arguments on Wednesday in the Legislature's effort to remove it from the November ballot because the proponents didn't follow the necessary procedures for amending the state constitution.

The governor said his position was "detailed" in briefs before the court, though he added that the act has "retroactive" provisions that could also cause significant problems for the state.

"I'd like to be careful about discussing something that is in front of the Supreme Court as we speak," Newsom said.

malcolm_maclachlan@dailyjournal.com