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Executive Council Meeting

Welcome to the. Executive Council Meeting. Florida Clerks of Court Operations Corporation. September 17, 2008 Orlando. Agenda. Approval of Minutes. 1. June 24, 2008 July 15, 2008. Treasurer’s Report. 2. Finance and Budget Committee. 3. a) Budget Amendment Requests

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Executive Council Meeting

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  1. Welcome to the Executive Council Meeting Florida Clerks of Court Operations Corporation September 17, 2008 Orlando

  2. Agenda

  3. Approval of Minutes 1 • June 24, 2008 • July 15, 2008

  4. Treasurer’s Report 2

  5. Finance and Budget Committee 3 • a) Budget Amendment Requests • b) Preliminary Auditor General Report • c) Reporting Process for new Clerk fees for DFS Contract • d) Update on Juror Expense process • e) Other Business

  6. Budget Amendment Requests a • Hardee County Clerk’s Office • Requests the authority to expend up to their FY 07-08 budget cap of $1,125,314. • Approval will remit $14,063 from the Clerks of Courts Trust Fund to the Hardee Clerks Office.

  7. Preliminary Auditor General Report b • January 2008 began operational audit of CCOC. • Exit Conference August 20th. • August 28th tentative report (30 days to respond). • Sent report to Offices cited and CCOC will verify data to ensure accuracy and respond. visited during the second week of July

  8. Reporting for new SB 1790 fees per DFS. c • New deliverable requires CCOC to report quarterly, new fees associated with SB 1790 with a detailed explanation by County for revenues not received as projected. • Please see attached draft form which details potentially several reporting fee areas.

  9. Update on Juror Expense process d • On July 15, 2008 the CCOC Executive Council approved the attached worksheet which provided additional budget cap distribution for Juror Expenses for the time period July 1, 2008 though September 30, 2008. • Since that time CCOC has increased Clerks FY 07-08 budget cap and sent certification letters for their internal records. • Quarterly actual expenditure reporting will ensure that each Office is made whole for these uncontrollable expenditures. • This cycle will repeat itself over the 3 quarters as potentially $3,564,551 is added to Clerk budget caps.

  10. Other Item e • The Lee County Clerks Office is projecting to incur an additional $11,787 of actual Juror Expenditures for the last quarter of FY 07-08. • In receiving the information, increasing their FY 07-08 last quarter budget cap by $11,787 will potentially make them whole for those expenditures that are outside their control.

  11. Performance Measures Committee 3 • The Performance Measure Workgroup and Committee looked at standards in April 2008 and decide to keep them at their current levels. • They will examine these standards again in the fall of 2008 to determine if any modifications are needed. • PM Workgroup scheduled to meet on October 23rd in Orlando.

  12. Personnel Committee 3 • The CCOC has advertised and is seeking vendors for Technical Services and Research Training and Other services. • Deadline for bid submission is 4:00 pm on Friday September 19th. • Personnel Committee to meet next week to review bids and recommend to full Council.

  13. Legislative Committee 4 • Update on the Legislative Committee

  14. FLORIDA’S ECONOMY IN A NUTSHELL Population/consumer engine growth:lowest ever = .6% up 2008 = 122,000 net new citizens 2.6% late 1990’s = 402,000 up next ten years = 1% average annual increase Unemployment Rate: 6.1% US and 5.9% Florida ..up trend Consumer confidence index: record low in June = 59 July = 61 FLA Housing Starts: - 30% in 2007 vs. 2006; - 53% in ‘O8 vs. ‘07 Median price home: $ 260,000 in 2006 $ 190,000 in 2008 Housing inventory: 11 months to clear? 300,000 excess supply Economy improves: best case = Qtr. 4 2009 worst = Qtr. 1 2010 Visitors to Florida: around 90,000,000 annually – international impacts; dollar value has recently regained 20% of its loss; global recession? Inflation:core = 2.5% Fed std. = 2.0% non-core (+ oil/food): 10% ’08?

  15. State & Local Budget Pressures State: Cut $8.5 billion in revenue growth estimates: 2008 – 2012 budgets State: FY 2008-09: first time getting less $ than previous yr. State: FY 2009 – 10: will see + $ 1.3 billion GR growth (off cut base) BALLOT BOX BUDGETING IMPACTS 2007 Property tax “law” changes: - $ 4.5 billion (roll-back + cap formula) 2007 Constitutional Amendment on Prop. Taxes: - $ 9 billion (portability/HSE) 2008 Const. Amend. knocked off ballot: - $ 9-10 billion (eliminate school RLE) 2009 Legislative Session: restructure language- put back on ballot? Governor? 2010: Const. Amend. Signatures being gathered: 1.35% Prop. Tax Cap: - $ 6 bill. BUDGET CUTS & LOCAL LOSSES FY 2008 – 2009 State budget: - $ 1.4 billion General Revenue shortfall Gross receipts tax: from $ 1.8 billion K-12/SUS/CC construction to$ 480 mil. Gas taxes: down 10%? Local Sales taxes down Property Taxes down?

  16. Florida’s Courts: BUDGET PRESSURES State rev. shortfall: $ 1.40 B LBC reserve authority - .67 Still need to cover: .73 more reserves? use Trust Fund surplus? Chiles Foundation? (repay)? Cut spending? (5% cut = 800 mil. statewide) FY 2006-07:$ 458 mil.Appropriation FY 2007-08:$ 491 mil.(Rev. shortfalls = cut budget during year by about 11%) FY 2008-09:$ 438 mil.Appropriation Potential Amendment this year: Up to 5% cut ? FY 2009-10: Potential of additional cut?? ALSO: JAC: State Attorneys & Public Defenders, Capital Collateral Counsels, Public Defender Conflict Counsels Could lose 5% in FY 2008 – 09??

  17. Clerks Fiscal Year 2008-2009 Budget Submissions 4 • Budget Worksheet #1 • Budget Worksheet #2 • Budget Worksheet #3 • Power Point Overview

  18. Clerks’ Court Related FY 2008-09 Budget ApprovalSeptember 9, 2008 Presentation by: John Dew, Executive Director Glenn W. Robertson

  19. CCOC FY 2008-09 BUDGET PROCESS 1. BUDGET INSTRUCTIONS JUNE 2008 2. FIVE REGIONAL BUDGET TRAINING WORKSHOPS JUNE-JULY 3. BUDGET REQUESTS PREPARED AND SENT TO CCOC BY AUGUST 15 4. CCOC TECHNICAL REVIEWS AND ANALYSES AUGUST-SEPTEMBER 5. CCOC COUNCIL BUDGET APPROVAL SEPTEMBER 9, 2008 6. CCOC SENDS CERTIFIED BUDGETS TO STATE OCTOBER 15, 2008 Starting the CCOC’s 5th full fiscal year of budgeting

  20. FY 2008-09 BUDGET MANAGEMENT CCOC Approved Annual Budgets Begins October 1, 2008 LBC Amendments Potential BARs 2008-09 LBC ACTIONS No Cap amendments expected for new judgeships. Potential LBC request if the 2009 Legislative Session “mandates” Article V services from Clerks’ Offices. • Expenditure Caps • Local revenue estimates • 3. Expenditure & Reserve Budgets (within Cap) • 4. Year-end “State surplus revenue” estimates • 5. # of“outputs” provided & performance standards for “outcomes” • 6. Trust Fund transfers neededto support bud. • 7. Trust Fund balances • REPLACE REVENUE SHORTFALLS • due to: • 1. hurricanes and other emergencies • 2. economic downturns and other non-emergencies CCOC ACTIONS Jury Expense Cap Amendments Up to $ 3,564,551 over a 3 quarter period: Oct. 1, 2008 – June 30, 2009)

  21. CLERKS’ COLLECTION CONTRIBUTIONSto the State of Florida $$$ hundreds of millions collected and sent to the State $$$ millionnon-court related collections sent directly to the State $ 717.3 million (estimate) court related revenue collections e.g. Crimes Compensation Fund Seat Belt Restraint Trust Fund for Spinal Cord Research Mediation Trust Fund Documentary Stamps $ 50 “off-the-top” filing fee $ 45.6 million Sent to State’s General Revenue Fund Other revenues $ 550.7 million Available to fund Clerks’ Budgets SB 1790 increases $ 121 mil. Sent to State’s General Revenue Fund

  22. SUMMARY:Clerks’ FY 2008-09 Court Related Budgets Clerks’ Local Revenue Collections est. $ 550.7 million 67 Clerks Expenditure/Reserve Request $ 539.2 million total Estimated Surplus: $ 11.5 million Potentially need up to $ 3.5 mil. for Juror expense authorizations = $ 8 million estimated surplus

  23. ’08-’09 Expenditure Cap Calculation Step 1:Rebase FY 2007-08Budget: $ 541 million Actual revenues vs. estimated are identified for SFY 2007-08. A revised (rebased) budget “cap” for SFY 2007-08 is then calculated. MOST OFFICES UNDER PROJECTED SO THEY WERE REBASED UP. Step 2:X 2.025% average revenue growth % for all 67 clerks Step 3:$ 551.9 MILLION EXPENDITURE CAP FOR FY 2008-09

  24. BUDGET COMPARISONS: FY 2007-08 to FY 2008-09 EXPENDITURE CAP $ 515.8 m.$ 551.9 m. + $ 36.1 m. (up 6.5 %) EXPEND/RESERVE BUDGETS $ 502.7 m.$ 539.2 m. + $ 36.5 m.(up 6.8 %) Approved Requested FY 2007-08 FY 2008-09 Difference $ 13.1 mil. 2.5 % below cap $ 12.7 mil. 2.3% below cap Differences: Cap and Expenditures will increase by up to $ 3.5 million for juror payments.

  25. SUMMARY: FY 2008-09 Budget Request Expenditure/Reserve Request:$ 539.2 million Expenditures: $ 533.3 mil. Reserves: $ 5.9 mil. $ 246.6 mil. CriminalCts. $ 286.7 mil. CivilCourts Personal Services: $ 480.70 million ( 90.1 %) Expenses: 50.70 million ( 9.5 %) Capital 1.90 million ( 0.4 %) Debt Service 0.00 million ( 0.0 %) Total: $ 533.3 million (100%)

  26. CLERKS’ WORKLOAD INCREASES KEY OUTPUT MEASURES IN FY 2008-09 FY 2008-09 Estimates: 9,885,619 ALL COURTS: Current and reopened criminal defendant and civil cases total …...... + 17.6% over last year Civil Courts: # of current cases and reopens… 7,917,023 + 21.0 % over last year Criminal Courts: # of defendants and reopens…….. 1,968,596 + 3.9 % over last year

  27. BUDGET APPROVAL CHECKLIST __1. Only State-approved court functions are funded. __2. Budgets are technically accurate: * IV-D Child Support $ not included as a revenue or expenditure * Revenue projection methodologies are documented * All required budget data and information was provided * Budget submission checklist completed __3. Any reserves are less than or equal to 10% and are within the authorized expenditure cap. __4. Performance standards and outputs are documented. __5. The Trust Fund is solvent. Counties funding budgets without support from Trust Fund: 39 Counties receiving Trust Funds to help fund budgets: 28

  28. Estimated FY 2008-09 “Operations Trust Fund” Balance: $ 11.5 million after funding 67 Clerks’ budget requests - 5.4 MILLIONPROPOSED MINIMUM 1 % ART. V RESERVE to cover possible emergency/economic downturn revenue shortfalls during the FY * Request that the state not sweep these funds until the end of the FY $ 6.1 million “Proposed” estimated surplus subtract up to $ 3.56 million for juror payment authorizations $ 2.5 million estimated surplus

  29. STATUTORY REQUIREMENTSFOR BUDGET CERTIFICATION • s. 28.35(3)(a), F.S. • Report due to Senate President, House Speaker, Chief Financial Officer, and Dept of Revenue by October 15, 2008 • Report shall include the following: -- the amounts of proposed budget certified for each clerk -- the revenue projections supporting each clerk’s budget -- each clerk eligible to retain some or all of the state’s share of fines, fees, service charges, and costs -- the amount to be paid to each clerk from the Clerk’s of the Court OperationsTrust Fund -- the performance measures and standards approved by the CCOC for each clerk -- the performance of each clerk in meeting the performance standards

  30. Examples of Budget Certification and Performance Reports to be sent to the State

  31. TYPICAL BUDGET BREAKDOWN REPORT

  32. Typical Performance Report EXAMPLE

  33. CLERK & CCOC BUDGET MONITORING DURING THE FISCAL YEAR

  34. Monthly Expenditure and Revenue Report

  35. “Red Flag Alerts” • CCOC Red Flag Alert System: • Helps to avoid problems and • Provides more timely support to Clerks when needed to: • - respond to revenue shortfalls • - analyze and process Budget Amendment Requests (BARs). • provide technical assistance on critical budget issues. • assess fee schedule adequacy to cover workload/output and performance standard/outcome achievement expectations. Red Flag Alert Systems Budget Education & Training Program Provide training opportunities to Clerks’ Office staff to: 1. set up practical RFA systems, 2. produce “RFA Reports to Clerk” 3. interpret RFA causes and implications for a Clerk’s Office 4. discuss multiple options for responding to RFA conditions (revenue shortfalls, expenditure surges, etc.) Planned for November 2008

  36. CCOC BUDGET DISCUSSION & APPROVAL

  37. Budget Report Form 5 • Enclosed is the proposed budget and performance format to be submitted to the Legislature. • Modifications from prior year submission.

  38. Fee for Filing Counter Petition 6 • Please see enclosed opinion from CCOC General Counsel.

  39. Clerk’s Trust Fund Update 7 • The Department of Revenue has begin making monthly sweeps from the Clerks of Court Trust Fund to General Revenue • DOR staff stated that they are committed to keeping a minimum Trust Fund balance of approximately $5 million after each sweep is made • August 1, 2008 Balance of $8,964,793.18

  40. Other Business 8

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