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Court Official Optimistic About $5 Billion Bond

Tuesday, April 29, 2008

  • Organization: The Daily Journal

By Linda Rapattoni
Daily Journal Staff Writer

SACRAMENTO - A judiciary official says he is confident lawmakers will approve a $5 billion bond to build courthouses, even as Gov. Arnold Schwarzenegger announced Thursday that the state now faces a $17 billion budget deficit.
William Vickrey, director of the Administrative Office of the Courts, said the judiciary has enlisted Senate Pro Tem Don Perata, D-Oakland, to carry the measure. He said SB1407 would be amended within a few days to reflect details of the proposal.
Although Perata doesn't have the same cozy relationship that Assembly Speaker Fabian Nunez shares with the governor, Vickrey said Schwarzenegger publicly has stated his support for the proposal.
"I was in a public meeting with Governor Schwarzenegger with Senator Perata present, when the governor said he was in support of his efforts on the revenue bond," Vickrey said.
"You know as well as I, it's an extraordinarily difficult year," said Curtis Child, director of the Office of Governmental Affairs for the Judicial Council. "We've been able to lay out the state of crisis our courthouses are in. At least we are making an effort here not to be looking to take any additional hits on the state general fund, so this would make this an easier sell."
Child declined to say whether the Judicial Council has received positive feedback from lawmakers on the revenue bond for courthouse construction.
Unlike a general obligation bond, a revenue bond does not need voter approval. It does need a nod from lawmakers and the governor.
In a speech to a statewide gathering of district attorneys discussing DNA issues in Sacramento, Schwarzenegger said state revenues have come up short this fiscal year by $7 billion and next year probably would be $10 billion short.
The estimate is $1 billion more than the $16 billion deficit estimated by the legislative analyst in January. Schwarzenegger put the shortfall at $14.5 billion at that time.
Perata's measure would increase filing fees by $35 on cases valued above $25,000, by $30 on cases valued between $10,000 and $25,000, and by $25 on cases up to $10,000, Child said.
It would also place a $40 surcharge on infractions, misdemeanors and felonies, and a $2 extra penalty on traffic tickets. It would cost $40 more to attend traffic-violator school and there would be a $5 assessment for every $10 in criminal fines.
Vickrey said the fee increases were reasonable and would not bar the public from access to the courts. Those with lower incomes can seek a fee waiver, he said.
Studies showed no drop in public courthouse filings between 1998 and 2006, when fees on general filings valued above $25,000 rose by $34, Vickrey and Child said. There has been a moratorium on fee increases since then.
Today, it costs up to $320 to file a civil suit and that includes fees to support other services, including law libraries and dispute resolution programs.
The additional revenue from the fee and penalty hikes would pay the debt of a $5 billion revenue bond that would be doled out over several years, enabling the judiciary to patch or build courthouses on a pay-as-you-go basis.
Vickrey estimated the $5 billion would finance the top 40 projects on a list of 160 that need rehabilitation. He said the bond market and rising costs of construction would determine just how many projects the $5 billion would cover.
Other means of financing would have to be found for the rest of the projects, he said.
The judiciary doesn't believe the full costs of maintaining courthouses should be born solely by those who use them because an efficient judicial system benefits the general public, Vickrey said, appearing to practice his sales pitch to legislators.

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