California Victim Fund Shrinks Even as Budget Grows

California Victim Fund Shrinks Even as Budget Grows

California's victims of violent crime are receiving less financial help from the state despite a larger overall budget for the program, according to a new analysis that has raised questions about how the money is being managed.

The California Victim Compensation Board has distributed roughly $50 million in the 2024 to 2025 fiscal year, down sharply from about $65 million in fiscal year 2019 to 2020, a decrease exceeding 30 percent. The fund hit a five-year low in 2021 when just $46 million was allocated to victim reimbursements, even as the program's overall budget climbed from $56 million in 2019 to nearly $80 million in 2022, where it has remained.

The decline is particularly puzzling given that California established the nation's first victims' compensation program in 1965 to help people harmed by violent crime cover expenses such as funeral costs, relocation, therapy, and crime scene cleanup. Yet fewer people are receiving awards, and more applications are being rejected.

The denial rate has doubled in five years. In 2019, the board rejected approximately 5,000 of nearly 47,000 applications. By 2024, it rejected about 10,250 of 25,000 applications, a significant reversal even accounting for fewer total submissions.

Californians for Safety and Justice, a nonprofit focused on communities disproportionately affected by crime, released the analysis and called the trend unacceptable. Tinisch Hollins, the organization's executive director, said the state is abandoning its obligations to crime survivors at a time when they are needed most.

"The state has been failing victims," Hollins said. "They have not been getting the support they deserve and that's directly tied to public safety."

The Victim Compensation Board blamed much of the increase in denials on applicants failing to submit required documentation on time, citing a change in its process as more people applied. The board did not explain why payouts have dropped despite a larger budget. In a statement, the program said it remains committed to helping crime victims recover.

Hollins pointed to deeper problems with how the program operates. She said many victims in hard-hit communities don't know the program exists, while others are deterred by bureaucratic hurdles or discouraged after hearing about neighbors being denied benefits. Some give up before even applying, she said, leaving money unused.

The program also has eligibility restrictions that Hollins argues keep the most vulnerable people out. Applicants must cooperate with police, participate in court proceedings if arrests are made, and cannot be on parole or probation for a violent crime when they seek compensation. This creates a barrier for people in communities dealing with both crime and the aftereffects of the criminal justice system.

"Just because someone was on probation or went to prison doesn't exclude them from being a victim if they are shot or injured," Hollins said. "These sanctions create a cycle of unaddressed harm in our community."

The timing of the funding decline coincided with a spike in homicides. The lowest payout came in fiscal year 2021 to 2022, when many California communities were experiencing their second consecutive year of historically high murder rates. Researchers are still exploring the causes, though pandemic disruptions, court slowdowns, and reduced violence intervention efforts have been cited.

The fund is primarily financed through California's Restitution fund, which collects fines and fees from people convicted of crimes. Additional money comes from the state's general fund and federal sources.

The shortfall has left crime victims with few resources for immediate assistance. Without quick financial help, some cannot afford to leave dangerous neighborhoods or access medical care, leaving them at risk of further harm. Some advocates say the vulnerability can lead to re-victimization.

This year, California voters passed Proposition 36, which stiffened penalties for retail theft, property crimes, and drug offenses. Supporters framed the measure as protecting crime victims, but Hollins said lawmakers push tough-on-crime policies while allowing existing victim support programs to deteriorate.

"These tough-on-crime laws are put in front of voters with the narrative that we're not doing enough to protect people who've been harmed," Hollins said. "Meanwhile, the one program in the state that is supposed to respond to victims is not doing that."

Author James Rodriguez: "The numbers here are hard to ignore: more budget, fewer payouts, thousands more denied. Either California's victim compensation program is broken or someone isn't bothering to fix it."

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