Title
Title
Trial Court Budget | Minimum Operating and Emergency Fund Balance Policy (Action Required)
body
Summary
Summary
The Judicial Council’s suspension of the minimum operating and emergency fund balance policy will expire on June 30, 2026. This policy requires trial courts to maintain a designated percentage of funds for use in emergency situations or due to budget shortfalls. Since fiscal year 2012-13, the council has repeatedly suspended the policy due to statutory changes and the availability of other emergency funding options. The Trial Court Budget Advisory Committee recommends extending the suspension for one additional year until June 30, 2027. This will provide sufficient time to revise the policy so that it better aligns with the current financial realities and reserve needs of the trial courts.
body
Recommendation
Recommendation
The Trial Court Budget Advisory Committee recommends that, effective July 1, 2026, the Judicial Council:
1. Approve a one-year suspension of the minimum operating and emergency fund balance policy for the trial courts until June 30, 2027; and
2. Add this item to the Funding Methodology Subcommittee’s annual work plan. This will allow time to revise the policy so that it better aligns with the current financial realities and reserve needs of the trial courts.
body