Sheryl Loesch Swakopmund, Namibia October 17, 2017 $how Me the Money! Sheryl Loesch Swakopmund, Namibia October 17, 2017

Introductions Name Position and court name What you like most about your job What you find most challenging about your job

Financial Independence of the Judiciary Potential Sources of Funding Models for Developing and Managing the Judicial Budget Budget Basics for Courts Budget Approval Process Budget Limitations Budget/Spending Plan Questions

The National Budget Process in the U.S. Shared problem with court budgets Funding for the federal judiciary comes from Congress Governed by statute, congressional directives and preferences, and Judicial Conference procedures 18 month process Continuing Resolution

By statute, the Director of the Administrative Office (AO) prepares the Judiciary’s budget requests Budget Committee reviews and considers request Recommended budget sent to Judicial Conference for approval Approved budget submitted to the Office of Management and Budget and Congress

Lots of slices of the money pie Supreme Court – salaries and expenses; buildings and grounds Court of Appeals/District Courts– salaries and expenses, defender services, juror fees, court security Administrative Office – salaries and expenses Federal Judicial Center – salaries and expenses Payment to judicial retirement funds

The Big “C” – COST CONTAINMENT Strategy approved in September 2004 Implemented to address a severe funding shortfall in 2005 and growing pay gap between the judiciary’s projected budget requirments and anticipated funding in future fiscal years Aimed at reducing rent costs, restricting staff growth, studying comprehensive costs, changing IT service-delivery methods, limiting program costs, and adjusting fees To better position the judiciary to request funding from Congress To slow the grown in judiciary costs without impeding the mission of the courts

Areas of Cost Containment Reducing rent costs Restricting staff growth Changing IT service-delivery methods Limiting other program costs Law books Chambers staff expenses

The Budget Process The Executive Committee approves the National Financial Plan for the judiciary at the beginning of each fiscal year based on the level of appropriations provided by Congress The Administrative Office (AO) allocates the funds to the appropriate functional activities as defined in the plan The AO allots funds to individual court units at the beginning of the fiscal year Chief judges have budget oversight responsibilities and court administrators typically are delegated authority for day-to-day management of the budget

Funds are distributed to courts in three major categories: Salaries Operating expenses Automation and IT

Court Administrator Responsibilities All areas of the court impact the court’s budget Court administrators need to be competent in the area of fiscal management, budget development, technology, and fiscal oversight Court administrators need to ensure that the vision, mission, and goals of the court are achieved and maintained

Small Group Exercise In your small groups, please discuss your most pressing need in the budget area in your court

Budget Considerations General/Recurring Expenditures – What costs are going up? Estimate the costs Equipment Replacement Plans – Do you replace computers every three years? What is getting replaced? Maintenance Schedule – Do you replace carpet or paint this year? What needs to be fixed? Capital Improvements – Are you renovating? Budget Cuts – Are you asked to cut funds from categories?

Assessing Court Needs How does your court plan for: Future courthouse improvements Technology Enhancements New Judges Infrastructure improvements Implementing a special program How can you improve this process?

Budget Development Start early!!!! Communication, communication, communication Look at last year’s expenditures; what will be different this year? Identify what must be funded vs. what is discretionary How can unanticipated needs fit into a plan? What costs can be reduced? Do projected spending rates seem reasonable or will there be surpluses or deficits in any areas?

Budget Development Continued Have needs changed? If there is a surplus, can any funds be returned? Is the delegation of authority and responsibility for budget management clearly documented? Do you have a budget planning and decision-making structure that promotes cooperation across organizational lines?

Typical Court Expenses Personnel Contracts – interpreters, repairs Equipment Travel/Training Telephone Office Supplies Security Utilities Furniture

Defending a Budget Statement of Need Connection to the Mission Supportive Information – data or other information that demonstrates the need for funding by the court Effective/efficient practices – how services produce savings Summary of funding needed Consequences of request denial

Group Exercise Purpose: Draft a budget justification for a new program in your court. It should be a brief explanation of the budget needs and clear written justification of costs to be reviewed by decision-makers. Scenario: You recently mentioned to your chief judge that self-help centers would assist many court personnel in working more effectively with the public. Your chief judge has asked you to write a budget justification for the development of self-help centers.

Ideas to Consider When Budget Cuts are Necessary Request additional funding Request assistance from another entity that benefits from the program or service Request shared funding from all the agencies that are involve and benefit from the program Request funding through grants

Budget Shortfalls Can the court increase revenues to offset the cut? Can you add additional court costs? Can you charge user fees? Can the court reduce expenditures? Can you cut office supplies? Can you cut personnel?

Strategies for Reducing Expenditures Hiring Freeze Reduction in Overtime Postpone equipment replacement Reduce travel/training Reduction of court hours of operation Close court facilities Outsource Stop providing a service Eliminate a program

Example of a Budget Spending Plan

Questions ?????