1. Resources, Budget, and Finance National Association for Court Management 1 Resources, Budget and Finance Fundamentals and Foundations for Court Leaders National Association For Court Management

2. Resources, Budget, and Finance National Association for Court Management 2 Exercise 1 - optional warm-up exercise What does “budgeting” mean to you? What is the purpose of the budget process? What do you expect to accomplish through the budget process?

3. Resources, Budget, and Finance National Association for Court Management 3

4. Resources, Budget, and Finance National Association for Court Management 4 Context of Court Funding Basics of Public Sector Budgeting The Budget Process Trends in Public Sector Budgeting Agenda

5. Resources, Budget, and Finance National Association for Court Management 5 Resources, Budget and Finance Fundamentals Context of Court Funding

6. Resources, Budget, and Finance National Association for Court Management 6 Characteristics of Public Sector Funding Public expectations Era of structural deficits Trends limiting available resources Shifts in budgeting philosophies No “profit margin” yardstick Level or workload is not related to level of revenues

7. Resources, Budget, and Finance National Association for Court Management 7 How is Judiciary funding different? No authority to raise revenues Funding level set by legislative branch But what to do and how to do it is prerogative of the judiciary Separation of powers - budget negotiations between constitutional co-equals

8. Resources, Budget, and Finance National Association for Court Management 8 Exercise 2 What examples can you provide of these phenomenon? Has your jurisdiction experienced limitations in revenues? How have public expectations about performance impacted your court? Are there examples of other branches attempting to control or influence how the court operates?

9. Resources, Budget, and Finance National Association for Court Management 9 Resources, Budget and Finance Fundamentals Basics of Public Sector Funding

10. Resources, Budget, and Finance National Association for Court Management 10 Methods of Budgeting Alternate budget formats: Lump Sum budgeting Line Item budgeting Program budgeting Zero Base budgeting

11. Resources, Budget, and Finance National Association for Court Management 11 Methods of Budgeting Elements of a Budget Request: Base budget Adjustments Incremental budget request Re-allocating base budget resources

12. Resources, Budget, and Finance National Association for Court Management 12 Revenue Sources of Revenue to Fund Courts: General Fund Appropriation Special Fund Appropriation Program Subvention Block Grant Grant

13. Resources, Budget, and Finance National Association for Court Management 13 Revenue General or Special Funds Revenue Sources General purpose taxes Revenues raised through courts: Filing Fees and Surcharges Fines and Penalty Assessments Cost Reimbursement User fees

14. Resources, Budget, and Finance National Association for Court Management 14 Revenue Role and Limitation of Courts in Raising Revenues: Courts are not self-funded “Net county cost” concept Court budget not linked to revenues raised by the court

15. Resources, Budget, and Finance National Association for Court Management 15 Separation of Powers and Inherent Power Concepts: What is all the fuss about? What is the judiciary protecting? Decision Making Perception of fairness and equality Equal protection

16. Resources, Budget, and Finance National Association for Court Management 16 Separation of Powers and Inherent Power Uses and limitations of inherent power for: Resource Acquisition Resource Allocation Accountability Discretion – wise use

17. Resources, Budget, and Finance National Association for Court Management 17 Exercise 3 Application of Concepts of Separation of Powers and Inherent Powers Selection of court employees Operation of court support programs Court record Drug Court treatment program Case management system Court facilities

18. Resources, Budget, and Finance National Association for Court Management 18 Small Group Exercise Preparation of Grant Application for a New Program or Service Introduce the small group exercise

19. Resources, Budget, and Finance National Association for Court Management 19 Resources, Budget and Finance Fundamentals Budget Monitoring

20. Resources, Budget, and Finance National Association for Court Management 20 Budget CycleBudgetPreparation Expenditures and Collections AccountingandMonitoring Analysis of Outcomes

21. Resources, Budget, and Finance National Association for Court Management 21 Budget Submission and Approval Who approves your budget within the court? Who do you submit your budget to? Who can change your budget submission? Who approves your budget?

22. Resources, Budget, and Finance National Association for Court Management 22 Budget Discretion During the Fiscal Year Moving money between line items “Overspend” one line item if funds available in another line item Unanticipated expenditures Unanticipated revenues

23. Resources, Budget, and Finance National Association for Court Management 23 Building a Budget A court budget should: Be responsive and persuasive to court purposes and vision Be responsive and persuasive to court goals and objectives Demonstrate the identification and diagnosis of court budgetary and performance problems

24. Resources, Budget, and Finance National Association for Court Management 24 Building a Budget A court budget should be responsive and persuasive to: Executive branch decision-makers and their budget analysts Legislative branch decision-makers and their budget analysts Stakeholders and the community served

25. Resources, Budget, and Finance National Association for Court Management 25 Good budget success requires skill in: preparing, presenting, and advocating the court’s budget in writing and in person Importance of Credibility

26. Resources, Budget, and Finance National Association for Court Management 26 Is the Court perceived to be spending the funds allocated to it wisely? Spend money on what you say you will Know the status of both expenditures and results on a real time basis Evaluate practice and programs for efficiency and effectiveness Stay on top of what is working and what isn’t Being willing to change Importance of Credibility

27. Resources, Budget, and Finance National Association for Court Management 27 Is the Court perceived to be spending the funds allocated to it wisely? Answer queries honestly and forthrightly Be a “Team player” both as to goals and priorities and working with other justice system entities Consider regular information briefing sessions for funding authority Importance of Credibility

28. Resources, Budget, and Finance National Association for Court Management 28 Importance of Credibility Need for good personal relationships With budget analysts With the funding body With support groups of court programs (constituents, service providers, etc.) With the community With the public and media

29. Resources, Budget, and Finance National Association for Court Management 29 Typical Sources of Budget Increases Factors which may require budget increases year-to-year COLA – cost of living adjustments Employee benefits Legislative mandates Judicial mandates New programs

30. Resources, Budget, and Finance National Association for Court Management 30 Typical Sources of Budget Uncertainties “Uncontrollable” Costs Indigent defense Interpreters Jury Fees Competency evaluations

31. Resources, Budget, and Finance National Association for Court Management 31 Budget Preparation and Defense Perceived Weaknesses and Vulnerabilities: Public criticisms Frivolous spending Unpopular programs or litigants Programs providing little benefit or impact Extraneous activities

32. Resources, Budget, and Finance National Association for Court Management 32 Budget Preparation and Defense Perceived Strengths: Well run programs or services Cost saving or cost reduction activities Popular programs or services Programs with visible benefit or impact

33. Resources, Budget, and Finance National Association for Court Management 33 Budget Preparation and Defense Cutback Strategies: Raise or enhance revenues Nick and cut Rearranging the Deck Chairs Rational Deconstruction

34. Resources, Budget, and Finance National Association for Court Management 34 Monitoring Expenditures and Revenues Why Monitor Expenditures and Revenues? To be responsive to and consistent with the court’s role and vision To implement budget goals and objectives To identify and diagnose budgetary and performance problems

35. Resources, Budget, and Finance National Association for Court Management 35 Monitoring Expenditures and Revenues Methods of Monitoring Expenditures and Revenues: Claims and invoice processing Monthly Reports Cost Accounting Monitoring against targets and patterns Monitoring by line item or program area Monitor of staff behavior

36. Resources, Budget, and Finance National Association for Court Management 36 Monitoring Expenditures and Revenues Monitoring Revenues: Posting of revenue Distribution of revenue Enhanced revenue collection Enforcement of court orders

37. Resources, Budget, and Finance National Association for Court Management 37 Monitoring Expenditures and Revenues Monitoring Expenditures and Revenues relative to: Court purposes and goals Court budget objectives Legislative and executive branch expectations Stakeholder and public expectations

38. Resources, Budget, and Finance National Association for Court Management 38 Monitoring Expenditures and Revenues Accounting and Auditing Principles: General financial record keeping and accounting for the public sector Financial audits, interpretation, and significance Legal requirements and business practices that protect courts against fraud, theft, or embezzlement of cash and other assets

39. Resources, Budget, and Finance National Association for Court Management 39 Monitoring Expenditures and Revenues Accountability for: Applicability of performance standards Selection and management of fiscal staff Management of the Court’s budget process Awareness of expectations of other branches, stakeholders, and the public

40. Resources, Budget, and Finance National Association for Court Management 40 Small Group Exercise Preparation of Grant Application for a New Program or Service Continue working on small group exercise

41. Resources, Budget, and Finance National Association for Court Management 41 Resources, Budget and Finance Fundamentals Trends in Public Sector Budgeting

42. Resources, Budget, and Finance National Association for Court Management 42 Budgeting for Performance Budgeting for outcomes Distinction of inputs, outputs, and outcomes Identifying relevant performance measures Efficiency and effectiveness measures Articulating both benefits from funding and consequences of not funding Expectations from Funding Bodies

43. Resources, Budget, and Finance National Association for Court Management 43 Budget preparation and monitoring: Fixed ceiling and base line budgeting Priority setting Partnering in requests for new funds Core judicial functions funded Performance Measures Multi-year perspective Cost containment Expectations from Funding Bodies

44. Resources, Budget, and Finance National Association for Court Management 44 Collaboration and Partnering Cost-sharing partnerships Shared support services Shared information technology applications Jointly operated programs Expectations from Funding Bodies

45. Resources, Budget, and Finance National Association for Court Management 45 Outsourcing and Contracting Out: With another public agency With the private sector With performance expectations With appropriate safeguards Expectations from Funding Bodies

46. Resources, Budget, and Finance National Association for Court Management 46 Mechanisms for delegating greater budget discretion: Authority to move funds across line items and program elements Lump Sum Budgeting Carry forward across fiscal years Use of special funds Expectations from Funding Bodies

47. Resources, Budget, and Finance National Association for Court Management 47 Concluding Summary Third branch – independence and responsibility Authority, limitations, and discretion Credibility, credibility, and credibility

48. Resources, Budget, and Finance National Association for Court Management 48 Small Group Exercise Preparation of Grant Application for a New Program or Service Continue working on small group exercise and presentation by groups

49. Resources, Budget, and Finance National Association for Court Management 49 Discussion and Feedback Based on what you heard today: What is one thing you will do differently when you get to work tomorrow? What is one thing you need to learn how to do, or do better? What is one relationship you need to build, or repair, to improve your budget success?