Board of Trustees Approves Final 2026 State Bar Budget

At its February 26-27, 2026, meeting, the Board of Trustees approved the final 2026 State Bar budget.

The 2026 budget includes total projected revenue of $374.5 million and total expenses of $463.5 million, resulting in a budgeted deficit of $89.0 million. This deficit is primarily due to grant revenue and expenses, which are largely pass-through funds. While the General Fund budget includes $118.4 million in revenue and $119.7 million in expenses―reflecting a planned deficit of $1.3 million―savings of approximately $6 million are anticipated due to vacant staff positions. General Fund reserves are projected to total $27.3 million at the end of 2026.

The Admissions Fund budget includes $31.9 million in revenue and $33.6 million in expenses, resulting in a budgeted deficit of $1.7 million. The 2026 budget incorporates all admissions service fee increases adopted in late 2025 and reflects the current obligated costs of the 2026 California Bar Exams. Admissions Fund reserves are projected to total $1.7 million at year-end.

The State Bar will submit the budget to the California Legislature by the statutory deadline of February 28, 2026. Adoption of the budget establishes the State Bar's spending authority for the year.

"The Board has approved a balanced and responsible spending plan for 2026 that enables the State Bar to continue carrying out its public protection mission while navigating the realities of a complex funding structure," said Board Chair José Cisneros. "Although the plan includes modest, manageable deficits, we anticipate operational cost savings as staffing levels adjust, and year-end reserves remain stable."

In other actions, the Board:

• Approved a Civility Toolkit, a comprehensive toolkit for offering Minimum Continuing Legal Education instruction to promote civility as a core facet of the legal profession. The Board also approved, following a 30-day public comment period, State Bar rule 2.3-the annual civility oath requirement for all attorneys, following the California Supreme Court order on civility-and amendments to rule 9.7. Rule 2.3, which carries all the requirements of interim rule 2.3 including requiring attorneys to annually declare adherence to the oath, is effective immediately.
• Discussed the quarter four 2025 metrics reports from the State Bar Court, the Special Deputy Trial Counsel (SDTC), and the Office of Chief Trial Counsel (OCTC). OCTC and SDTC continued to see rising volume of complaints in 2025. With incoming cases climbing and reduced staffing levels, OCTC is managing higher workloads while working to reduce a backlog that remains above target levels. Despite these challenges, OCTC continues to focus on timely case processing and maintaining quality standards as complaint activity is expected to remain high in 2026.
• Adopted several legislative priorities, primarily in the areas of public and consumer protection and regulation. Included in these is a proposal to address the nearly $6 million currently held in client trust accounts of deceased attorneys. The Board approved pursuing legislation to help reunite clients with the funds owed to them.
• Evaluated the results of the State Bar's one-year Fresh Start Settlement Program, which ended on December 31, 2025. The program offered attorneys an opportunity to settle their outstanding debt to the State Bar at reduced rates. Fresh Start generated $2.8 million from 370 completed settlements. Of the 2,633 attorneys invited to participate-holding $208 million in outstanding debt-only 25 percent engaged. Even so, when combined with regular collection activities, total 2025 collections revenue reached $4.8 million, and through Fresh Start, the State Bar closed out more than $10.2 million in debt owed to the agency.

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The State Bar of California's mission is to protect the public and includes the primary functions of licensing, regulation and discipline of attorneys; the advancement of the ethical and competent practice of law; and support of efforts for greater access to, and inclusion in, the legal system.