Understanding the budget threats state courts face

The week began with a mini strike by some of the San Francisco court employees.

http://blogs.sfweekly.com/thesnitch/2012/07/sf_superior_court_workers_on_s.php.

Even the most casual observer of state court budgets knows about the extreme challenges facing the California court system. Maintaining unity is (to say the least) a big challenge for the California Courts. But a new task force led by former New York Lieutenant Gov. Richard Ravich and former Federal Reserve Chairman Paul Volcker warns of calamity for states if they continue on their financial trajectory and highlights six threats to their stability. If their assessment is accurate lots of courts throughout the nation may face experiences like those the California courts are going through.

The study doesn’t break much new ground. In short, it paints a very dismal future for state finances which in turn could translate into a very bleak future for court funding.  

According to task force, which includes experts on municipal finance, the most significant pitfalls facing states include:

  • the growing cost of Medicaid
  • underfunded pensions
  • a shrinking and volatile tax base
  • federal deficit reduction efforts
  • fiscal distress among local governments
  • state budget laws that mask problems and hinder stability

Those challenges have been well-documented by Governing and many other observers. Officials with the task force hope the report will have an impact beyond those who already recognize those issues. (View the full report here and a summary here)

Leave a comment