California attorneys will pay an additional $88 in licensing fees next year, representing a 17% increase over the current $510 fee.
Governor Gavin Newsom signed the fee increase into law on Thursday. Although bar officials initially requested a $125 hike, the approved increase will help stabilize the financially struggling agency.
Earlier this year, the State Bar projected a $24 million deficit by 2025. The increase is expected to generate approximately $18.6 million next year, according to a spokesperson from the State Bar of California on Friday.
The new law mandates the bar to reduce its workforce by 45 to 50 positions through attrition by April 2027, while protecting current employees.
The State Bar, which has around 600 employees, is the second largest state bar association in the U.S., after New York. It has licensed 266,000 attorneys to practice law in California, including 190,000 who are active.
This marks only the second attorney licensing fee increase in 25 years in California, according to Brandon Stallings, chair of the state bar’s board of trustees.
The $88 increase will apply to active attorneys, while inactive attorneys will pay an additional $22.60 annually, raising their dues to $205.
The State Bar must seek approval from the state legislature for fee increases, as lawmakers hold final authority on funding.
Earlier this year, bar executives cautioned that legislators might view the requested fee hike as excessive. However, they warned that without an increase, the State Bar would face significant financial challenges due to rising personnel and operational costs.
The bar has faced pressure to strengthen its attorney oversight system following the Tom Girardi scandal.
A state bar investigation revealed that officials ignored multiple complaints about Girardi, a high-profile attorney recently found guilty of embezzling client funds by a federal jury in California.
In August, the State Bar finalized plans to administer its own bar exam starting in February 2025, expecting to save up to $3.8 million annually by delivering the test remotely.
