Judiciary rejects governor's plan to 'freeze' budget
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Now that Gov. Tom Corbett has ordered a freeze of nearly $160 million in state spending and requested a freeze of almost $66 million from independent governmental entities, civil legal service programs are facing a 10 percent cut in state funding.
The cut, requested earlier this month, would amount to a loss of $274,000, another blow for Pennsylvanians too poor to afford their own lawyers, and for the diminishing civil aid workforce that serves them.
Mr. Corbett, a Republican, also asked the state judiciary to "freeze" its current budget by 3 percent, or $8.96 million, from its allotted budget of $298.9 million. Any frozen funds are being placed into a budgetary reserve.
But James Koval, who is part of the Administrative Office of Pennsylvania Courts' budget and finance team, said the courts have already informed the Corbett administration that the judiciary won't be making the midyear budget freeze.
Eighteen percent of the court's budget is made up of state grants, such as reimbursement to the counties of court costs, which have already been expended, Mr. Koval said.
"Most of what we have left are salary and benefits so we really can't comply without laying people off and, of course, we have to pay the judges," Mr. Koval said. "I believe they understand."
Susan Hooper, communications director for the Office of the Budget, said in an email that because the judiciary is not in the governor's jurisdiction, it would be up to them to comply with Mr. Corbett's request.
In a press release earlier this month, Mr. Corbett said, "Until revenue collections improve, we must take precautions to ensure that the commonwealth budget remains in balance."
Mr. Koval said even without the midyear budget freeze, the judiciary expects to have a deficit between its expenditures and the monies appropriated from the state general funds. The judiciary will make up the shortfall by transferring money from a fund that is supposed to be dedicated to technology.
During budget negotiations for this fiscal year, the judiciary pledged its willingness to transfer as much as $10 million from the court's technology fund, Mr. Koval said. While Mr. Corbett's initial budget proposed flat funding from what former Gov. Ed Rendell had proposed for the judiciary in past fiscal years, the state Senate added $22 million in general funds and the judiciary pledged its willingness to transfer as much as $10 million out of the technology fund to cover operational expenses, most of which goes for salaries and benefits, according to Mr. Koval. "But we did say this would be the last time we would be willing to transfer the money out of the fund," he said.
The Pennsylvania state court system is asking for an additional $26.7 million in the 2012-13 budget, Mr. Koval said, in order to cover a 3 percent cost of living increase for judges mandated by statute and to cover the overall operational expenses that the judiciary otherwise has been covering through the technology fund.
Gerald A. McHugh Jr., president of Pennsylvania Legal Aid Network Inc., said the "anemic" funds dedicated to civil legal aid -- due to funding cuts and reduced interest earned on accounts -- means there has been a need to reduce the number of employees of legal services agencies around Pennsylvania by 15 percent.
The civil legal aid workforce statewide has been cut from 300 to 268, said Mr. McHugh, of Raynes McCarty in Philadelphia.
Two programs have cut salaries, 10 programs have frozen salaries and eight programs have reduced or suspended retirement contributions for employees, Mr. McHugh said.
Civil legal aid has faced a tough funding climate before, but, Mr. McHugh said: "I think this is the worst situation it has faced."
Ms. Hooper said in an email that, as of the midpoint of the current fiscal year, "State revenues were $486.8 million below estimate. [But] if the revenue picture improves in the months ahead and the administration determines that these funds no longer need to remain frozen, it may be possible to free up some or perhaps even all of the funds now placed into budgetary reserve."
Also, Mr. McHugh said, the Pennsylvania Legal Aid Netwrok is looking to tap into the generosity of private-sector donors. "Members of the private bar need to prioritize charitable giving for legal services" because lawyers understand the importance of civil legal services, he said.
First Published January 23, 2012 12:00 am
