Budget Background
Fund Structure
The State Bar’s budget represents a complex combination of 21 funding sources supporting over 40 distinct functions within the organization.
General Fund
Spendable financial resources that can generally be used to support most aspects of the State Bar’s operations. The General Fund's primary funding source is the licensing fee paid by all attorneys as licensees of the State Bar, authorized annually by California Business and Professions Code section 6041.
Reserves
State Bar funds are generally required to maintain a net reserve balance minimum equating to two months—or 17 percent—of operating expenses, and a maximum reserve balance of 30 percent. Whenever the reserve level in a fund subject to the policy surpasses 30 percent, a reserve spend-down plan is developed.
Restricted Fund Group
Activities and financial resources that can only be used for specific purposes. The State Bar has 10 funds in this group:
- Admissions Fund
- Bank Settlement Fund
- Client Security Fund (CSF)
- Elimination of Bias Fund
- Equal Access Fund (EAF)
- Grants Fund
- Justice Gap Fund
- Lawyer Assistance Program (LAP) Fund
- Legal Services Trust Fund
- Legislative Activities Fund
2025–2027 Forecast
Except for line items with known variances, the 2025—2027 forecast assumes the following:
A 3 percent inflationary increase for expenses annually. The inflationary percentage is based on a rounded three-year historical average of the Consumer Price Index (CPI) for Urban–San Francisco-Oakland-Hayward for the period ending December 2023.
A 2.5 percent cost-of-living adjustment (COLA) in 2025 per the negotiated memorandum of understanding (MOU).
Growth in mandatory fee revenue projected annually at 0.3 percent based on projected licensee counts.
Zero Increases
No COLA increases for 2026–2027, as they have not yet been negotiated with the State Bar’s union. Annual step increases for qualifying employees are included.
Flat staffing levels.
No statutory licensing fee increase.
