Nevada County courthouse employees are preparing to receive layoff notices, and the local water district could lose millions of dollars in property taxes as California officials wrestle to keep the state solvent.

In last week’s special election, voters overwhelmingly rejected five propositions aimed at staving off an economic collapse with tax hikes and borrowing to close an expected deficit of $21.4 billion.

The Nevada County Superior Court expects to see as much as $400,000 sliced from the budget for fiscal year 2009-10 beginning on July 1, according to Court Executive Officer Sean Metroka.

That’s on top of a combined hit of $5.7 million expected by other local government agencies — Nevada County, Grass Valley, Nevada City and the 10 local school districts — as the state continues to axe payments to the local government agencies.

Based on predictions received from the state, Metroka expects to lay off five to six court employees this summer, he said. He is waiting for budget revisions related to the Judicial Branch budget to make a final decision, he added.

The loss to the court is more than 5 percent of its annual budget. That’s on top of $250,000 in reductions in the current fiscal year.

The amount might have been less had the state propositions passed, but that’s not clear, Metroka said.

“Any improvement in the status of the general fund would relate to an improvement for the entities drawing their budget form the general fund,” Metroka said. “We are in a difficult budget situation that is likely to get worse for a couple of years before it gets better.”

Nearly a year ago, the court began shaving costs by reducing nonpersonnel expenses by $260,000, letting go five temporary employees and, in January, starting a volunteer furlough program for all employees.

By April’s end, furloughs became mandatory for the 71 remaining employees. A 40-hour reduction must be met by Dec. 31.

Next year, the locally managed court plans to increase mandatory furlough time to 104 hours, or two hours per week, Metroka said.

State money to fund 41 courthouse projects, including a new courthouse in Nevada County, could also be shifted to fix the state budget woes.

“There is some proposal to divert that money to offset the state’s deficit,” Metroka said.

Services such as alternative drug and mental health courts, a free public law center and family law facilitator won’t see impacts for now, he added.



When the state withheld money in 2004, a hiring freeze was issued, and vacancies left by retired employees were left unfilled.

“This time around, no one is leaving. So I am forced to do something else. It is very unpleasant for all of us,” Metroka said.

The state could borrow property taxes from the Nevada Irrigation District, water officials said.

It’s happened before.

Between 2003 and 2005, the state shifted $6 million from NID coffers to an Educational Revenue Augmentation Fund, NID Assistant Manager Tim Crough said.

NID collects $10 million in property taxes each year.

“If they borrowed all of the revenue, it would affect rates dramatically,” Crough said — adding that scenario isn’t likely.

If a percentage of property taxes are snatched this time, a new capital improvement program that strings new water lines to arid, remote neighborhoods with dry wells would be put on hold, he said.

“It’s just now taking hold and becoming a success. It would really be a setback,” Crough said.

To contact Laura Brown, e-mail lbrown@theunion.com or call 477-4231.