Proposed 2025-26 Budget

Overall Budget Summary

The Proposed Budget recommends status quo staffing of 64.0 full-time equivalent (FTE), including negotiated salary and benefit increases. Appropriations total $19,193,122, funded by revenues of $1,463,299 and a General Fund contribution of $17,729,823.

The Budget includes an increase in total revenues of $653,270 due to a $523,378 increase in one-time Assembly Bill (AB) 1869 backfill revenue and $402,651 increase in ongoing AB 177 backfill revenue that were realigned from General County Revenues to PDO, which were offset by a $316,640 decrease from the end of the State’s Public Defense Pilot Program and $70,850 decrease in federal funding reimbursements for Medi-Cal Administrative Activities.

Total expenditures increased by $1,209,096 largely from a $886,780 increase in negotiated salary and benefits, $112,471 increase from a change in facility charges to properly reflect facility services and utilities, and $50,874 increase in operations for a new Human Resource and Payroll System, regular annual increases for software licenses and services, a copier, and training.

End of Public Defense Pilot Program: In 2021, the State Budget Act established the Public Defense Pilot Program (PDPP) to support public defense agencies handle specific legal cases post-conviction, such as overturning convictions with inadequate immigration advice, resentencing for people convicted under outdated laws, sentencing schemes, or in violation of the Racial Justice Act, as well as providing mitigation support for anticipated Youthful Offender Parole hearings for minors charged as adults and young people sentenced to long prison terms. PDO has received around $300,000 a year from this three-year grant, the last of which was issued in 2024-25. PDO has used this grant funding to support our defenders in providing statutorily mandated defense defined in the terms of the grant.

Proposition 36 Enforcement and Impacts: In November 2024, voters passed Proposition 36, leading to more felony filings, increased incarceration, and decreased resources for supportive services, such as treatment programs for people suffering from mental health and substance use disorders. Proposition 36, which took effect December 18, 2024, increases penalties for retail theft and drug possession by turning some misdemeanors into felonies, requiring early incarceration for shoplifters, and making offenses that previously resulted in probation eligible for State prison. Proposition 36 mandates treatment for people convicted of certain drug crimes with prior drug offenses without providing additional funds for treatment.

In Santa Cruz County, clients typically wait for about a month in jail before being considered eligible for release in a residential program, then several more weeks for placement. In the first month after Proposition 36 was enacted, PDO noticed that over 10% of new felony cases would have been classified as misdemeanors prior to Proposition 36. Multiple clients who would not have faced incarceration under prior laws remained in jail, unable to afford the cash bail attached to felony charges. Felony prosecutions, increased incarceration, and waiting lists for treatment require more intensive support from our defense teams, which in turn increases our workloads.

Immigration Advocacy Responding to Federal Enforcement: PDO’s client-centered defense model looks beyond the four corners of the criminal case to the enmeshed legal and social needs that drive criminal legal system involvement. More than 12% of clients are noncitizens facing potential immigration issues related to their criminal cases. Consistent with holistic defense and as constitutionally mandated (Padilla v. Kentucky), PDO assists clients with navigating how criminal legal system involvement impacts their immigration status. The immigration attorney on staff focuses about 65% of their time on immigration-related issues (Padilla advisals). These issues include working to overturn convictions based on faulty immigration pleas (vacaturs) and screening children in the juvenile justice system to see if they qualify for Special Immigrant Juvenile classification (SIJ), which provides legal immigration status. This immigration attorney has been instrumental in expanding pro bono or low-cost services to non-citizens facing deportation. They support, train, and provide technical assistance to the Santa Cruz County Removal Defense Collaborative, including hosting the County’s first Asylum Clinic, which helped over 10 families file asylum applications for over 20 individuals.

Historically, this attorney focused about 35% of their time on defending civil cases and providing support to trial attorneys with high workloads. The federal administration, however, has promised to “seal the border shut and begin the largest deportation operation in American history.” (Popli, N (2025, Jan. 14). “What Trump Says He Will Do on Day One.” Time, available at What Trump Says He Will Do on Day One.) PDO anticipates this policy will place more demand on the immigration attorney.

Uncertainty of Medical Administrative Activities (MAA) Revenue: The 2025-26 budget anticipates nearly $240,000 in revenue from MAA reimbursements through CalAIM (California Advancing and Innovating Medi-Cal). Launched in 2022, CalAIM leverages the state’s Medi-Cal program to provide services to incarcerated individuals by allowing eligible people to enroll in Medi-Cal and receive services in the 90 days before their release. This initiative operates under federal waivers set to expire at the end of 2026. As of April 2025, it is unclear whether the MAA program is at risk under the federal administration.

New Case Management System: A new case management system is a critically necessary and time-sensitive upgrade. It will improve efficiency and data collection and enhance overall operational effectiveness.