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

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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. 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

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

11. 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

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

13. 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?

14. 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?

15. 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?

16. 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?

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

20. 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

21. 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.

22. 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

23. 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?

24. 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

25. Example of a Budget Spending Plan

26. Questions ?????