court funding: from crisis to stability
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Court Funding: From Crisis to Stability. National Foundation for Judicial Excellence Fifth Annual Judicial Symposium. Robert N. Baldwin Executive Vice President And General Counsel National Center for State Courts. Basic Message. - PowerPoint PPT PresentationTRANSCRIPT
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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