MANAGING BUDGET CUTBACKS by Robert W. Tobin Kenneth G. Pankey, Jr. March 1994 National Center for State Courts State Justice Institute ©1994 National Center for State Courts ISBN 0-89656-139-9 National Center Publication Number R-160 This Report was developed under Grant SJI-93-05C-B-017 from the State Justice Institute. Points of view expressed herein are those of the authors and do not necessarily represent the official position or policies of the State Justice Institute ACKNOWLEDGMENTS This report is one of a series of reports that are designed to elaborate and expand upon sections of the NACM Trial Court Financial Management Guide. A special acknowledgment is due the National Association for Court Management which has promoted and supported the effort to provide useful management materials. This report was made possible by the cooperation and assistance of many persons who took the time to coordinate site visits, to provide information, and to review drafts. Editorial comment on the main body of the report was provided by Sally Hillsman, Vice President, Research, National Center for State Courts. Gene Flango and Bill Hewitt of the National Center provided information on research reports which relate to this project. Alex Aikman of the National Center provided comment on Appendix J, Total Quality Management/Reinventing Government: Relevance to Court Administration. Production assistance was provided by Bill Fishback, Stevalynn Adams, Mary McCall, and Joe Kueser of the National Center. The cooperation was excellent at each of the sites visited by the staff. These visits were coordinated through the chief executive officer of the court and normally involved interviews with the chief executive officer, various members of his or her staff, officials of the other branches, and judges exercising administrative functions. We extend our thanks to all persons who took time to provide us with information and to review our work. We particularly thank the managers who bore the brunt of our visit and the administrative judges under whose aegis we operated. North Dakota The Honorable Gerald W. VandeWalle, Chief Justice; the Honorable Ralph Erikstad, Chief Justice (retired); Keithe Nelson, State Court Administrator. Maine The Honorable Daniel E. Wathen, Chief Justice; James T. Glessner, State Court Administrator; Robert Freeman, Deputy State Court Administrator. 19th Judicial Circuit, Illinois (Lake County) The Honorable John A. Goshgarian, Chief Judge; Robert A. Zastany, Court Administrator. iii iv • Managing Budget Cutbacks First Judicial District, Pennsylvania, (Philadelphia) Dr. Geoff Gallas, Executive Administrator. Connecticut Judicial Department The Honorable Ellen Ash Peters, Chief Justice; The Honorable Aaron Ment, Chief Court Administrator; James O. Cavanaugh, Executive Director, Administrative Services; Joseph D. D'Alesio, Esq., Director of Operations, Superior Court. Sacramento County, California (Superior and Municipal Courts) The Honorable Roger K. Warren, Presiding Judge; Dennis B. Jones, Court Executive Officer; Charles H. Robuck, Administrative Services Officer. Ventura County, California The Honorable Steven Z. Perren, Presiding Judge, Ventura Superior Court; the Honorable Bruce A. Clark, Presiding Judge, Ventura Municipal Court; Sheila Gonzalez, Executive Officer/Jury Commissioner, Ventura Superior and Municipal Courts; Vince Ordoñez, Jr., Assistant Executive Officer; Florence Prushan, Assistant Executive Officer. Broward County, Florida (17th Judicial Circuit) The Honorable Dale Ross, Chief Judge; Carol Lee Ortman, Court Administrator; Thomas Furst, Deputy Court Administrator; Cheryl Anderson, Deputy Court Administrator. Special thanks go to Brian Lynch who, as a National Center employee, conceived the idea for the project and who returned as a consultant to assist the project in its early stages. Robert W. Tobin, Project Director Kenneth G. Pankey, Jr. TABLE OF CONTENTS Page Acknowledgments.............................................................................................................................. iii Summary of Findings and Conclusions .............................................................................................ix Introduction: Goals, Methodology, and Products.............................................................................. 1 A. Goals...................................................................................................................................... 1 B. Advisory Committee.............................................................................................................. 1 C. Project Methodology ............................................................................................................. 1 1. Site Visits.......................................................................................................................... 2 2. COSCA Survey ................................................................................................................. 3 3. Application of Financial Management Innovations to Courts .......................................... 4 4. Bibliography..................................................................................................................... 4 D. Report Description................................................................................................................. 4 E. Appendices............................................................................................................................. 4 Part I: Prospects for Funding State Courts in the 90s ........................................................................ 6 A. Overview ............................................................................................................................... 6 B. Indicators of State Financial Condition ................................................................................. 6 1. Year-End Balances............................................................................................................ 6 2. Expenditure Growth..........................................................................................................7 3. Expenditure Policies ......................................................................................................... 8 4. Revenue............................................................................................................................ 9 C. Summary................................................................................................................................ 10 Part II: Approaches to Cutback Management .................................................................................... 11 A. Overview ............................................................................................................................... 11 v vi • Managing Budget Cutbacks B. Fundamental Changes................................................................................................................ 11 1. Changes in the Organizational and Geographical Configuration of Courts.......................... 11 a. The New Push for Unification................................................................................... 11 b. Unification Experience at Project Sites..................................................................... 12 c. Organizational Unification and Efficiency................................................................ 13 d. Geographic Unification............................................................................................. 16 2. Changes in Interbranch Relations.......................................................................................... 17 3. Management Style, the Public Sector Entrepreneur.............................................................. 19 4. Changing Judicial Roles........................................................................................................ 20 5. Alternative Means of Financing Court Operations................................................................ 21 a. Funding of Educational and Rehabilitative Programs for Substance Abusers and Errant Drivers....................................................................... 23 b. Fees for Probation Services....................................................................................... 23 c. Jury Demand Fee....................................................................................................... 24 d. Family Services and Alternative Dispute Resolution................................................ 24 e. Automation Fees........................................................................................................ 24 f. Youth Homes ............................................................................................................. 25 g. Facilities.................................................................................................................... 25 h. Indigent Defense and Legal Aid................................................................................ 25 i. Court Education ......................................................................................................... 26 j. Law Libraries ............................................................................................................. 26 k. Court Improvement Trust Funds ............................................................................... 26 l. Security.....................................................................................................................