Editorial: California budget could harm nonprofits

Publisher’s note: This editorial is from the June 26, 2017, Sacramento Bee.

Legislation on Gov. Jerry Brown’s desk threatens an important source of funding for nonprofits in California. The governor should heed a coalition of nonprofit organizations that oppose it, and use his veto pen.

Under current law, judges distribute money from settlements in class action lawsuits that goes unclaimed to nonprofit organizations that do work that is relevant to the cases. The theory is that the money, while not going to victims of whatever wrong is addressed in the litigation, will help prevent some future harm.

But as part of this year’s budget, legislators added a provision to a trailer bill that would take half of the unclaimed funds and earmark it for indigent legal services and collaborative courts such as those established for veterans or mentally ill people who run afoul of the law.

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