Collection Compliance The Challenge Can Be Met January 30, 2014 Jacksonville, Florida Doug Isabelle, CCOC Budget Director

What is the Issue? Clerk’s Trust Fund Has Adequate Revenues through CFY 14/15; but may not for the long-term. Fines, filing fees, and court costs are declining Expenditures are outpacing revenues Not enough depository counties to sustain trust fund in long term There are “key” factors for the decline The Trust Fund relies heavily on “Big 6” counties; but all counties can do their part There are opportunities to increase collections and the “Challenge Can Be Met”

Revenue Projections Not Adequate for 3% Budget Increase in Out-Years

5-Year Trend Line of Selective Trust Fund Revenue Types

Expenditures Outpace Revenues Collections 2009-2010 2010-2011 2011-2012 2012-2013 Expenditures $441,473,797 $433,612,871 $434,214,276 $428,357,998 Revenues $470,587,666 $426,422,932 $414,944,530 $423,366,253 Difference $29,113,869 ($7,189,939) ($19,269,746) ($4,991,745) Revenues % of Expenditures 106.6% 98.3% 95.6% 98.8%

Expenditures Outpace Revenue Collections

Actual Collections Below State Estimates

Need to Increase Depository Clerks For Long-Term Viability of Trust Fund

SFY 2013: Profile of Depository Counties 19 “Depository” Clerks 4 = Large Counties, 7 = Medium/Large Counties, 3 = Medium Counties, 5 = Small Counties 48 “Funded” Clerks Of the 48 Clerks that are “Funded” 9 = Offices within 90% of fully funding annual expenditures Increasing collections 4% ($2.4 Million) will cover annual expenditures 16 = Offices within 80% of fully funding annual expenditures Increasing collections 15% ($9.0 Million) will cover annual expenditures 23 = Offices less than 80% of full funding.

“Big 6” Counties Collect Half of Trust Fund Revenues

“Big Six” Counties Revenues Have Declined

Miami-Dade Revenues Leads the “Big 6”

Why Have Revenues Declined? Less New Civil Cases Filed

Why Have Revenues Declined? Less New Civil Traffic Tickets Issued

Other Factors Why Revenues Declined? Revenues Diverted from the Trust Fund 10% fine monies to PRMTF $80 filing fee (changed June 2013) Other factors No filing fee for civil indigent cases (since 2009) Reopen case filing fees Local diversion programs Lower amount of tickets and assessments Judicial waivers and community service Judgment liens Less civil cases Economy

There is Another Factor Collections “ A fine is punishment for a crime only if it is collected” Estimated 60% of Trust Fund Revenues are collected “up-front” (e.g. time of filing, paying a traffic ticket on time). Estimated 40% of Trust Fund Revenues are collected from criminal defendants and non-paying traffic offenders over time.

What is Required? All court-assessments are due at the time of judgment and/or sentencing. If not paid Section 28.246 (6), F.S. requires A clerk of court shall pursue the collection of any fees, service charges, fines, court costs, and liens which remain unpaid after 90 days by referring the account to a private attorney or collection agent. The clerk must have attempted to collect the unpaid amount through a collection court, collections docket, or other collections process, if any established by the court, find this to be cost-effective and follow any applicable procurement practices.

How are We Doing Overall Statewide? Court & Std. 2009-2010 2010-2011 2011-2012 2012-2013 Circuit Criminal 9% 7.70% 7.40% 6.90% 5.90% County Criminal 40% 39.15% 39.90% 38.10% 35.90% Juvenile Delinquency 27.50% 25.30% 22.40% 23.60% Criminal Traffic 40% 58.40% 56.30% 56.00% Civil Traffic 90% 84.80% 86.30% 84.10%

How are The “Big 6” Counties Doing? Court & Std. 2009-2010 2010-2011 2011-2012 2012-2013 Circuit Criminal std. 9% 7.4% 6.9% 7.2% 5.9% County Criminal std. 40% 46.5% 31.1% 31.4% 29.3% Juvenile Delinq. std. 9% 25.4% 23.6% 22.0% 24.7% Criminal Traffic std. 40% 56.5% 52.8% 53.5% 53.7% Civil Traffic std. 90% 84.7% 85.5% 88.3% 85.0%

How are the Small Counties Doing? Court & Std. 2009-2010 2010-2011 2011-2012 2012-2013 Circuit Criminal 9% 17.1% 18.5% 19.0% 19.8% County Criminal 40% 60.5% 59.0% 57.9% 57.8% Juvenile Delinq 47.5% 45.8% 44.7% 46.0% Criminal Traffic 64.6% 63.8% 64.3% Civil Traffic 90% 89.3% 88.8% 88.7% 87.9%

What can be done to reverse the Revenue trend? Wait until civil cases turn around? U.S. Labor Dept. Estimates that Florida’s population will exceed New York as 3rd largest state We could wait for law enforcement to write more traffic tickets. We could recommend increasing filing fees, court costs, and service charges? We could recommend redistributing existing court collections to Clerk’s first priority? We could work with the courts to limit community service? We could work with the court partners to assess all mandatory assessments? We could seek legislative authorization for additional enforcement tools?

Or Could Improve Clerk Collection Activities? Option 1: Invest In-house collection activities Hire adequate; qualified staff; and provide training. Acquire automation for: payment plans, skip tracing, IVR systems, tracking probation and collection agents cases. Develop collection reports: How many cases are currently on payment plans? What is the age of the debt? How many probationers owe and how much? Design facilities/space adequate to maximize collections. Develop consistent collection (methods and processes) that are efficient to maximize collections. OR

Option 2: Contract for Collections: How to Accomplish this? Option 2: Contract for Collections: Method 1: Privatize (cradle to grave) Method 2: Probation Departments Did you know that making court-order payments directly to the Clerk’s cashiers, Not through probation typically gets better collections results? Did you know that probationers should be on clerk payment plans for better collection results? Did you know that private sector operated probation typically collects better than publicly operated probation departments?

Estimated Cost for In-House Collection Program Dedicated In-House Collection Program For large counties estimated $400,000 to $500,000 annually For median-size counties $150,000 to $200,000 annually Small size counties $50,000 annually Plus other collection-related staff (e.g. cashiers) Survey of 16 counties “collection” activities for SFY 12/13 about 3%-5% of budget

Some Questions to Ask Yourself Have you elevated the importance of revenues in your organization? Are you managing revenues and collections like a company CEO---Corporation? When is the last time you reviewed your collection processes? Have you made changes after you visited other Clerk offices or CCOC staff visited you? Do you have a plan on how to increase collections? Do you use collections reports (performance & the annual s. 28.246)? Or is just another Tally report? How frequent do you review? Do you require and use performance reports from probation and collection agents? Do you meet with court partners routinely regarding assessment and collections? Do you pilot new ideas?

Additional Questions What do you do with the $25 payment plan service charge? What do you do with 10% fine for improving collections? You have the authority per s. 938.30 F.S to negotiate; are you doing it? Do you set monthly or quarterly revenue targets? Are your payment plans effective? Do you know how much uncollected debt you sent to collection agencies? How much have they collected for you?

Did You Know? Florida Legislature tasked the CCOC to conduct a collection study and report findings in 2012? Some recommendations included; Convene local collection policy work groups Encourage development of local pilot programs Develop court collection plans Non-renewal vehicle registration for failure to pay Wage and bank account garnishment Deny application for professional license Deny or suspend recreational licenses (boating, hunting, fishing) Amnesty programs

What is the Challenge? Investing time and money into collections. Demonstrating to the Legislature that Clerks are doing their “best”. Don’t stop looking at ways to improve, make changes; pilot test ideas. An effective collection program should have strong support from the clerk and leadership team. Some “key” dates: February 2014 state REC June 2014 budget to CCOC July state REC August budget due to LBC CCOC can provide assistance

It Can Be Done Lake County Improves Collection Rates Court Division 2010-2011 2011-2012 2012-2013 County Criminal 34.39% 43.28% 43.69% Criminal Traffic 49.49% 51.44% 57.80% Civil Traffic 86.40% 88.59% 88.04%

Collection Principles and Three Clerk Collection Compliance Programs Presentations: Mr. Russ Duncan– Collection Principles Honorable Tara Green- Clerk, Clay County Honorable Maryanne Morse– Clerk, Seminole County Ms. Kristi Wagstaff—Collection Enforcement Mgr., Polk County

Florida Clerks of Court Operations Corporation John Dew, CCOC Executive Director Doug Isabelle, CCOC Budget Director 850-386-2223 Russ Duncan, Court Compliance Specialist 352-601-7526