Page 4 - FY 2020-21 Budget Book (Abridged)

MESSAGE FROM PJ & CEO

A MESSAGE FROM PRESIDING JUDGE

AND COURT EXECUTIVE OFFICER

November 16, 2020

This year’s budget is certainly not one that anyone could have foreseen when
the Governor proposed his initial budget in January 2020. At that time, the State
was expecting a budget surplus, and trial courts were in line for a third
consecutive year of modest funding growth after years of reductions. In
addition, the reserve limit was just increased from 1% to 3% of operating
budget, giving our Court the opportunity to set aside more reserves to address
unexpected funding needs.

Hon. Kirk H. Nakamura The opportunities for financial growth changed in a matter of a few months
Presiding Judge with the arrival of the COVID-19 pandemic. California’s economic landscape
changed drastically upon the delivery of Governor Newsom’s May Revision,
which contained a deficit of $54 billion. The State budget that was eventually
enacted included a net ongoing reduction of $167.8 million for the trial courts,
resulting in a $12.6 million reduction to our Court.

While we continued to maintain optimism that Federal Stimulus funding
would offset reductions to the Judicial Branch’s budget, the infusion of these
monies never materialized by the October 15, 2020 deadline. In its absence, we
have assembled a budgetary plan this year that includes $13 million in
David H. Yamasaki reductions to our operating budget as well as unanticipated COVID-19 related
Court Executive Officer
expenses for the current and previous fiscal years.

After much consultation, deliberation, and planning, a balanced budget was approved by the Executive
Committee on November 3, 2020. The Court’s Approved Budget was balanced through a combination of an 8.5%
vacancy rate, a reduction in the number of vacant positions, program restructuring, project and maintenance
deferral, cuts in other services and supplies, use of the Court’s remaining reserves, and employee furloughs.

COVID-19 has disrupted the way in which we serve the public; however, our Court continues to demonstrate
leadership in adapting to new ways of doing business. While our Court is facing tremendous obstacles this year
and perhaps for several years to come, we are confident that we will emerge from this stronger and better, armed
with lessons learned from one of the greatest challenges our generation has ever faced.