Courts gain in revised budget amid $12B shortfall

As Gov. Gavin Newsom unveiled a grim $12 billion budget shortfall in his May revision, one branch of government emerged unscathed -- and even rewarded. California's judiciary stands to receive over $32 million more than in the governor's January proposal, including infrastructure spending, for a total of over $5.2 billion.

While many parts of government are bracing for cuts, the courts appear to be shielded from the fiscal turbulence, drawing praise from judicial leaders and legal advocates alike for preserving access to justice in uncertain times.

"As Governor Newsom strives to address a variety of risk factors with the budget solutions in his revised 2025-26 state budget proposal, we appreciate his ongoing commitment to mitigate the impacts on access to justice for Californians," said California Chief Justice Patricia Guerrero in an emailed statement. "We look forward to working with his Administration and the Legislature to finalize the budget in the coming weeks."

"Governor Newsom's proposed budget recognizes what anyone seeking justice knows well: in a time of uncertainty, access to our courts is more important than ever," Consumer Attorneys of California CEO Nancy Drabble said in an email. "By maintaining and protecting trial court funding, Governor Newsom has ensured that Californians who have been exploited, scammed, defrauded, and injured will have the opportunity to pursue justice and their right to a day in court."

But Newsom warned of "ongoing uncertainty" while speaking to reporters. His office projected a $363 million surplus when he released the first draft of the budget in January. According to a summary his office release before the news conference, "the state must now close an estimated shortfall of $12 billion to balance the budget."

"We had a revenue projection, but we were off," Newsom said.

He will now negotiate with the Legislature ahead of a June 15 deadline to pass a main budget bill. But the final state of the budget is rarely so much in doubt this late in the year. Newsom said, "The economy was humming" throughout the initial months of the year, and tax revenues came in $7.9 billion ahead of projections. But then he posted a slide showing a $16 billion "Trump Slump" he said was caused by tariffs and other actions by President Donald Trump. Newsom added that this is a two-year projection.

"That has significantly changed because of the actions of this administration," Newsom added.

The new budget takes away $20 million from the planned backfill to the State Court Facilities Construction Fund and makes a $38 million reduction to the Trial Court Trust Fund Unrestricted Fund Balance. This could reduce the branch's flexibility in dealing with budget uncertainty in the coming year. It will also almost certainly renew calls from the nonpartisan Legislative Analyst's Office to discontinue these funds entirely and pay for these responsibilities directly out of the General Fund.

Supporters of Proposition 36, by contrast, were howling after seeing Newsom's new plan. Republicans, tougher-on-crime Democrats and others have called on the governor to allot budget funds for the criminal justice initiative, which was passed by voters without a dedicated funding stream.

"California voters have been very clear about their state priorities: reduce homelessness and reduce crime," said California State Association of Counties CEO Graham Knaus in an emailed statement. "The budget proposal would not fund either of those priorities. There's no money in this proposal for successful local efforts to address homelessness, or for counties to implement Prop. 36. Counties can't do this alone. It's time for the state to honor the voters' wishes and fund these programs."

Assembly Republican Leader James Gallagher, R-East Nicolaus, released a statement calling Newsom's budget "a load of crap" and accused him of "finger pointing" by blaming the shortfall on the president.

Senate Budget Committee Vice Chair Roger Niello, R-Fair Oaks, tried out alternative slogan--"Gavin's Gap"--and said he was causing "long-term pain for his short-term presidential gain."

The plan also had plenty of critics among traditionally left-leaning groups.

"Governor Newsom's budget fails to include funding to sustain essential, life-saving services, leaving victims of sexual assault, domestic violence, child abuse, human trafficking, and other violent crimes across the state in a dangerous situation," Chris Negri, associate director of public policy strategies at the California Partnership to End Domestic Violence, said in an email.

The Department of Justice is slated to receive $1.3 billion under the plan, the same as the January proposal. This will include $14 million for "44 positions to defend California against adverse federal actions."

Attorney General Rob Bonta announced in February he would leave the crowded governor's race and instead run for a final term in his current office. This could reflect the high-profile role his department will play throughout Trump's second term.