Top O.C. Judge Warns County of Legal Clash

Acknowledging that their action could precipitate a constitutional crisis, Orange County’s judges have served notice on the Board of Supervisors that it can expect a formal order to boost court funding by an amount that would break next year’s budget.

“We do not desire this confrontation over adequate trial court funding,” Presiding Superior Court Judge James L. Smith said in letters sent to the supervisors late Tuesday. “However, in light of the unwillingness or inability of the County of Orange to meet its statutory responsibility to provide sufficient trial court funding, we see no alternative.”

Smith also fired off similar letters to Gov. Pete Wilson’s office and Assembly Speaker Doris Allen (R-Cypress), notifying them that the bankruptcy recovery plan under consideration in Sacramento is so seriously flawed that it “will only exacerbate the existing problem rather than provide a solution,” because it does not provide enough money for the county to meet its budgetary obligations.

“This situation may well precipitate a constitutional funding crisis, which must be addressed by the Legislature and the governor,” Smith warned the supervisors.

The threatened judicial action comes as the county scrambles to get Sacramento’s approval for its so-called “consensus” bankruptcy recovery plan before the Legislature’s Friday recess.

Supervisor Marian Bergeson said it couldn’t have come at a worse time and fears that it could jeopardize the county’s efforts to shepherd its bankruptcy recovery plan through the Assembly and Senate.

“It’s really unfortunate this couldn’t wait,” Bergeson said. “It’s critical to the success of our legislation that we present a united front. This has the potential for interfering with that.”

But Smith said county officials have only themselves to blame. He said he has been warning for weeks that the county’s plan to leave the courts with a $41-million budget shortfall was unacceptable.

“I don’t want to get into the supervisors’ faces,” Smith said. “But they have been ignoring this situation. When you ignore something, it doesn’t mean that it doesn’t exist.”

Smith said the courts need $161 million to maintain an adequate level of operations during the 1995-96 fiscal year, and will receive about $43 million in funding from the state. The county expects to contribute $33.8 million--about $20 million less than last year--and the courts expect to receive about $43 million in fees, grants and other revenue.

That will leave the courts $41 million short of what officials say they need to maintain operations next year.

“Are the courthouses of Orange County merely to close their doors from April through June of 1996?” Smith asked rhetorically in his letter to Allen.

A court order to the county to come up with another $41 million would wreak havoc with the county’s general fund budget, which already has been slashed 41% from the previous year’s level, and now stands at $270 million.

The threatened judicial action would also be unprecedented under the state’s current trial court funding process, said Martin Moshier, an administrator with the Administrative Office of the Courts.

“There hasn’t been any action of that kind under this new scheme,” Moshier said.

In years past, the state was the main source of trial court funding. Now, the state and the county share that burden. Both judges and county officials complain that the state has unfairly reduced the share it pays over the years, creating hardships in the courts and counties to pony up more to keep their courts operating.

“What’s happening in Orange County in regards to the bankruptcy is new, but these kinds of funding problems are happening up and down the state,” said Moshier, who said he does not anticipate Sacramento coming forward with millions more for state courts.

But the problems in Orange and neighboring Los Angeles counties are especially severe, and have attracted the attention of Chief Justice Malcolm Lucas of the California Supreme Court, who has personally petitioned Wilson for more money for the financially ailing counties.

Smith plans to appeal to the state Trial Court Budget Commission for additional state revenue to cover the shortfall. But that appeal will likely be rejected, Smith said, leaving him with no choice but to order the county to come up with the rest. If the supervisors refuse to appropriate the money, they could be held in contempt of court, he added.

So sure of the appeal’s failure was Smith that he used his warning letters to formally “serve as notice of our intention to initiate proceedings . . . to ensure that the citizens of Orange County will enjoy the same level of public safety and access to justice as is enjoyed by other citizens of the State of California.”

Neither side in Orange County shows signs of backing down, and the rhetoric is growing even more heated as the courts and the county squabble over exactly how much money is even at issue.

Smith contends that the courts have cut back so dramatically over the years that it has little “fat” to spare even as it is being forced to take on more costs, such as helping to fund the marshals that provide security for the courthouse.

But court funding needs were questioned in an internal memo prepared by county analyst Ron Coley for interim County Chief Executive Officer Jan Mittermeier.

The memo, written in response to Smith’s letter, says the courts are unwilling or unable to provide details about the county system’s minimum funding requirements. The memo also says that Smith “disregards” the fact that the courts are looking to spend 33% more than they did last year, at a time when agencies across the county are facing severe cutbacks.

Additionally, the memo questions whether the court has taken necessary steps to find ways to consolidate services among the six courthouses in the county and look for other ways to save money.

Smith fired back at such comments, saying last year’s spending figures are artificially low in part because the county declared bankruptcy and didn’t pay some of its bills, and was operating under an emergency spending status throughout 1995.

“We are not trying to secrete, hide, mask or camouflage anything that is not absolutely necessary,” he said.

Alan Slater, executive officer of the Orange County Superior Court, said the lack of state funding has pitted the courts against the county, which is expected to finalize its budget next week.

“The county has decisions to make at the budget hearings next week,” Slater said. “We’re left hanging out there. We’re not happy that it’s come to this.”