REINVESTING IN OUR JUSTICE SYSTEM: Budget Reductions and Proposed Solutions Fiscal Year 20132014 Supreme Court, Courts

of Appeal, Judicial Council/AOC, Habeas Corpus Resource Center

_____________________________________________________________________________________________________ In these difficult times, the judicial branch, like the rest of state government, has undergone significant budget reductions. The branch will continue to implement solutions to manage the reductions responsibly and to preserve the best possible service to the public. However, a reinvestment in the justice system is necessary to avoid further debilitating impacts on the publics access to justice. OVERVIEW OF THE JUDICIAL BRANCH FUNDING CRISIS Over the past five fiscal years, the judicial branch has experienced ongoing reductions of $535 million. Of that amount, setting aside reductions to the superior courts, reductions of $60.1 million have been made for the following entities: Supreme Court ..................................................................................... $4.2 million Courts of Appeal .................................................................................. $17.8 million Judicial Council/Administrative Office of the Courts (AOC).............. $30.2 million Judicial Branch Facility Program ......................................................... $6.3 million Habeas Corpus Resource Center (HCRC) ........................................... $1.7 million During that time, according to the California Legislative Analysts Office, the state General Fund share of the entire judicial branch budget fell from 56% to just 20%. Last year alone, state General Fund support for the judicial branch was reduced by $544 million. In the Governors proposed budget for fiscal year (FY) 20132014, only 1% of the General Fundjust one penny out of each dollargoes to fund the entire judicial branch. Supreme Court action to address reductions: Reduced salaries for every employee by 4.62% via mandatory furloughs of one day per month since 2009 (four years). Suspended cost-of-living increases for employees since FY 20072008. Reduced step increases from 5% to 3.5%; suspended them for FY 20092010. (General practice in government has been to continue to provide step increases of as much as 5%.) Held open vacancies whenever possible, but often filled them, out of necessity, by retired annuitants or temporary help to enable the court to handle essential workload at a reduced cost. Reduced the number of oral argument sessions in Los Angeles to reduce travel costs. Courts of Appeal action to address reductions: Reduced salaries for every employee by 4.62% via mandatory furloughs of one day per month since 2009. Suspended cost-of-living increases for employees since FY 20072008. Reduced step increases from 5% to 3.5%; suspended them for FY 20092010. Held open vacancies, 12% cumulative. Average vacancy rate for all six districts will continue to increase as vacancies occur and remain unfilled. Only positions deemed critical by a courts Administrative Presiding Justice are being filled; most remain vacant until leave payouts for separating employees are absorbedtypically three to four months. Reduced cumulative operating expenditures by an average of 32%. Eliminated or severely curtailed mediation/settlement programs.

Backlogs are accumulating in all courts because of vacant positions and furloughs. Some courts cannot keep current with all cases, and the calendaring of civil cases is being delayed or set aside because priority must be given to juvenile and criminal cases. Third-quarter statistics reports from the AOC indicate that the clearance rate for completion of the appeals process has slowed by 10% for civil cases, 5% for criminal cases, and 5% for juvenile cases. Moreover, without additional funds, at least two of the six districts will need to reduce public hours.
Judicial Council of California February 22, 2013 1

Habeas Corpus Resource Center action to address reductions: Reduced salaries for every employee by 4.62% via mandatory furloughs of one day per month since 2009. Reduced key elements of the legal programmost significantly, the ability to accept and staff new cases. Held vacant six legal staff positions for the entire 20112012 fiscal year, did not backfill positions with temporary employees during leaves of absence or open recruitments, filled vacant positions with less experienced attorneys, and approved reduced schedules for existing staff. Renegotiated or solicited new bids for all scanning, copying, and records collection contracts. Reduced costs for telephone, library, and legal research and investigative databases by 50% through a combination of reducing services, changing usage patterns, and securing new vendors. Conducted cost-benefit analyses for all information technology purchases and maintenance contracts, reduced temporary and contract services, and paid legal internships. Vacated a large off-site storage facility and consolidated another. Judicial Council/AOC/Judicial Branch Facility Program action to address reductions: Reduced salaries of every employee by 4.62% via mandatory furloughs of one day per month since 2009. Suspended cost-of-living increases for employees since FY 20072008. Reduced step increases from 5% to 3.5%; suspended them for FY 20092010. Reduced staff by 320 positions over two years (including layoffs and two rounds of a voluntary separation incentive program), representing more than 28.5% of the Judicial Councils staff workforce (1,121 positions on July 1, 2011, as compared to 801 positions on January 31, 2013.) Current vacancy rate is 13.8%. Consolidated space in San Francisco, Sacramento, and Burbank offices to reduce costs. PROPOSED FUNDING SOLUTIONS Families, individuals, and businesses served by the judicial branch require solutions beyond those contained in the Governors proposed budget. Among the most critical additional components of a budget for the coming yearwhich address only a part of that needare the following: Reinvestment of $23.955 million from the General Fund for the Supreme Court, Courts of Appeal, and Habeas Corpus Resource Center: 1. $5.88 million to eliminate furloughs: The state-level judicial branch entities have imposed a mandatory furlough for the past four fiscal years and will need to continue this policy for a fifth year absent additional resources for FY 2013 2014. Providing these funds will increase the ability of the branchs reduced workforce to carry out its mandated responsibilities. 2. $767,000 for employee health benefits: The proposed budget provides no new monies for state judicial branch employee health and benefit cost increases, totaling $767,000 for FY 20132014, although increases were funded in previous years and continue to be funded for executive branch agencies. The General Fund must support these cost increases. 3. $12.42 million to adequately fund staff costs: Insufficient funding is available to address staffing costs for appellate courts and the HCRC. Many employees are already at the top step of the pay scale. Funding for these costs is not budgeted, requiring positions to be held vacant to cover these additional costs. 4. $4.89 million to address baseline funding shortfalls: Costs associated with funding the workers compensation program, lump sum leave, and operating expenses such as rent are not fully covered by existing budgets. Having to cover these costs requires additional positions to be held vacant. Reinvestment of $15.35 million from the General Fund for the Judicial Council/AOC/Judicial Branch Facility Program: In order for the Judicial Council/AOC to have the necessary staffing to support the operations and needs of all entities within the branchincluding trial and appellate courts and the Habeas Corpus Resource Centeradequate funding levels for the Judicial Council/AOC need to be restored.

Reinvesting in our justice system will enable all Californians to have access to their courthouses, access that is essential to the preservation of the rule of law, justice for all, and a peaceable and civil society.
Judicial Council of California February 22, 2013 2