court funding: from crisis to stability

Court Funding: From Crisis

to StabilityNational Foundation for Judicial ExcellenceFifth Annual Judicial Symposium

Robert N. BaldwinExecutive Vice President And General CounselNational Center for State Courts

State and Local Revenue will be Severely Constrained at Least through 2010 and most likely 2011

Basic Message

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Source: Center on Budget and Policy Priorities 3

Source: Center on Budget and Policy Priorities 4

What is the status of state court budgets?

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Source: COSCA Budget Survey June 12, 2009 6

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Special Programs that are likely to be eliminated or reduced because of budget cuts—Percentage of States

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How will the federal stimulus package affect court budgets?

Source: COSCA Budget Survey June 12, 2009 9

Statement of the ProblemParticularly difficult for states

to recover from current fiscal situation

Housing markets slow to recover

Depressed consumption and sales taxes

Property tax revenues affected

Unemployment deteriorates income tax revenues and creates further downward pressure on sales tax revenues

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Statement of the Problem

Primary actions state can take during fiscal crisis:

Draw down reserves (rainy day funds)

Cut expenditures (can slow economy)

Raise taxes (can slow economy)

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Statement of the Problem

States have implemented or are considering cuts that will affect:

Low income children/families health insurance or access to health care

Programs for elderly and disabled

K-12 and early education

Public colleges and universities

State workforce

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Statement of the Problem

Can Courts Avoid Cuts?

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The Current Fiscal Crisis –

How is it different?

Appears that it will get worse for next several yearsStructural deficits in state budgetsDemographic shifts (fewer workers, more retirees)Rising health , education and transportation costsBoth state and local governments are being hurt severelyMerely relying on cutbacks may not be adequateTax increases and fee increases used last recession. May not be availableAccounting tricks already used

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The Good News

• Courts are being significantly shielded from the worst of the budget impacts in most states. 

• Federal stimulus will lessen reduction in court budgets—for now

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State Strategies from Last Recession

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How are Court’s responding this recession?A. 50% will not be filling judicial

vacanciesB. Will not be recalling retired

judge to sitC. Reducing hours of operationsD. Limiting weekly hours workedE. Implementing hiring freezesF. Implementing voluntary

furloughs17

How are Court’s responding this recession?

(cont.)G. Restricting travel H. Deferring pay raisesI. Reducing employer

contributions to health benefitsJ. Creating mandatory furloughsK. Cutting funding to special

services and programs e.g. ADR, Problem Solving Courts

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How are Court’s responding this recession?

(cont.)L. New or additional technology

M. New emphasis on collection of fines and costs

- Private collection agencies

N. Increase in fees- May not work because this has

already been done

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Impact of cutsA. Increased backlogs in civil, criminal and

family/juvenile casesB. Reduction in service to publicC. Diminished record keepingD. Limited access to the courts

- Reduction in hours of operations- Increased filing fees

E. Diversion of resources from civil to meet constitutional and statutory mandates in criminal, juvenile and family matters

F. Possible reduction in jury trialsG. Jurors seeking recusal for financial

hardshipsH. Voluntary Judicial pay cuts 20

Elements of Budgeting Strategies

Focus on overall mission of the courts – “constitutional necessity”

“core function of government”

A.Budget JustificationRelate needs to mission and goalsDevelop a cost accounting mentalityEvaluate alternativesPresent budget requirements as part of the justice systemInclude particular costs of statutory and constitutional requirementsCite all applicable legal provisions

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Elements of Budgeting Strategies

B. Accountability MeasuresDevelop analytical data to indicate performance and shortfalls (CourTools)Define areas where lack of funds will affect the programs

C.Inherent Powers – can this be used?

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Strategies Administrators May Consider for

Responding to the Fiscal Crisis

- Judicial independence is enhanced by increased managerial credibility and entrepreneurial court management

- Fiscal crisis requires prioritization of court services, strategic panning and agile management

- Court should accept fair share of budget cutbacks, but could seek freedom in return e.g. lump sum budgets

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Strategies Administrators May Consider for

Responding to the Fiscal Crisis

- Leverage technologies based upon return on investment and cost avoidance strategies

- Establish partnership and ongoing dialogue with funding bodies

- Create a Performance Measurement System

- Exempt mandated expenditures from basic budget reductions e.g. salaries of judges

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Strategies Administrators May Consider for

Responding to the Fiscal Crisis- Shift non-court costs out of the court budget,

e.g. indigent defense costs

- Outsource specialized functions and staff intensive operations e.g. collections

- Enhance judicial collections Outsource to private sector collectors Tax intercept programs

- Leverage opportunities for Process Re-engineering and

Restructuring 25

Service Redesign- What does a court do when all

other remedies for budget cuts fail to solve the problem?

- Best Practices for Redesigning the way courts deliver services

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Think in terms of services for stakeholders instead of functions that courts perform.

Example: Payment of traffic fines online instead of traffic citation case processing.

Think in terms of external stakeholders instead of internal staff.

Think in terms of redesigning business process to deliver more with less instead of maintaining current business processes while delivering less with less.

Some Baseline Concepts

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Reduce court hours Reduce court locations Reduce therapeutic courts Reduce non-constitutional services Reduce staff Reduce pay

Reduce external services to stakeholders!

Typical Current Strategies

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Automation of processes Centralization of processes Changes in court organization Standardization of processes Outsourcing processes

Reduce the cost of existing services

Low-hanging Fruit for Redesign

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Electronic filing & docketing of documents and motions

Electronic payments Electronic Document

Management System Litigant self-help Notifications Creation of the official court

record Integrated Case Management

System Provision of the record on appeal

Automated Services

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Filing Payments Collections Document access Data queries Jury services (partial) Interpreters (partial)

Centralized Processes

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- Consolidation of courts- Changes in venue requirements or jurisdictional lines

- Greater flexibility in assigning judges and court personnel across jurisdictional lines

Changes in Court Organization

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Every administrative process statewide?

Every technology statewide? External interfaces only Services only Applications, Systems, Infrastructure

Standardized Services

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Technology infrastructure Network Servers Email Security

Collections E-filing Data entry

Outsourced Services

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Happier customers, because they get improved services

Happier staff, because they get improved jobs and pay

Happier society, because it gets a court system with renewed institutional viability and improved efficiencies.

The Pot of Gold

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Public wants all three branches of government to play a big role in addressing significant justice problem

90% think it is important for heads of the three branches to meet regularly on justice system issues

Public thinks courts should be provided enough money to function properly

Separate Branches, Shared Responsibility

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Over 80% oppose raising filing fees 85% oppose cessation of jury trials 71% say state Supreme Court

should have the final say in deciding controversial issues

74% of well informed categories express confidence in the courts compared to 65% confidence in the legislatures and 66% in the governor

Separate Branches, Shared Responsibility

(cont.)

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1. Periodically survey court administrators to track budgets, shortfalls and strategies

2. Budget Resource Center Interactive maps where you can see

state specific activity and learn from other states

What is NCSC Doing?

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3. SJI Grant to track shortfalls and identify the principles by which courts should be funded- Funding Guidelines or Principles- Collecting best practices- Providing technical assistance – SWAT team with court connection network

4. Developing Redesign Methodologies- High Performance Courts

What is NCSC Doing?

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