1. Resources, Budget, and Finance National Association for Court Management 1 Resources, Budget and Finance Fundamentals and Foundations for Court Leaders National Association For Court Management

2. Resources, Budget, and Finance National Association for Court Management 2 Exercise 1 - optional warm-up exercise What does “budgeting” mean to you? What is the purpose of the budget process? What do you expect to accomplish through the budget process?

3. Resources, Budget, and Finance National Association for Court Management 3

4. Resources, Budget, and Finance National Association for Court Management 4 Context of Court Funding Basics of Public Sector Budgeting The Budget Process Trends in Public Sector Budgeting Agenda

5. Resources, Budget, and Finance National Association for Court Management 5 Resources, Budget and Finance Fundamentals Context of Court Funding

6. Resources, Budget, and Finance National Association for Court Management 6 Characteristics of Public Sector Funding Public expectations Era of structural deficits Trends limiting available resources Shifts in budgeting philosophies No “profit margin” yardstick Level or workload is not related to level of revenues

7. Resources, Budget, and Finance National Association for Court Management 7 How is Judiciary funding different? No authority to raise revenues Funding level set by legislative branch But what to do and how to do it is prerogative of the judiciary Separation of powers - budget negotiations between constitutional co-equals

8. Resources, Budget, and Finance National Association for Court Management 8 Separation of Powers and Inherent Powers Concept of Inherent Power Uses and limitations of the inherent powers doctrine for: Resource allocation Resource Acquisition Accountability Discretion – wise use; just because you can does not mean you should

9. Resources, Budget, and Finance National Association for Court Management 9 Exercise 2 What examples can you provide of these phenomenon? Has your jurisdiction experienced limitations in revenues? How have public expectations about performance impacted your court? Are there examples of other branches attempting to control or influence how the court operates?

10. Resources, Budget, and Finance National Association for Court Management 10 Resources, Budget and Finance Fundamentals Basics of Public Sector Funding

11. Resources, Budget, and Finance National Association for Court Management 11 Typical Budget Formats Line Item budgeting Program budgeting Zero Base budgeting Lump Sum budgeting

12. Resources, Budget, and Finance National Association for Court Management 12 Budget CycleBudgetPreparation Expenditures and Collections AccountingandMonitoring Analysis of Outcomes

13. Resources, Budget, and Finance National Association for Court Management 13 Building a Budget Request Base budget Adjustments Incremental budget request Re-allocating base budget resources

14. Resources, Budget, and Finance National Association for Court Management 14 Sources of Revenue for Courts Typical sources of revenue for courts: General Fund Appropriation Cost Reimbursement Program Reimbursement Block Grants Grants

15. Resources, Budget, and Finance National Association for Court Management 15 Resources, Budget and Finance Fundamentals The Budget Process

16. Resources, Budget, and Finance National Association for Court Management 16 Building a Budget A court budget should: Be responsive and persuasive to court purposes and vision Be responsive and persuasive to court goals and objectives Demonstrate the identification and diagnosis of court budgetary and performance problems

17. Resources, Budget, and Finance National Association for Court Management 17 Monitoring Expenditures and Revenues Why Monitor Expenditures and Revenues? To be responsive to and consistent with the court’s role and vision To implement budget goals and objectives To identify and diagnose budgetary and performance problems

18. Resources, Budget, and Finance National Association for Court Management 18 Monitoring Expenditures and Revenues Methods of monitoring: Exception reporting Cost accounting Spreadsheet Full transaction detail

19. Resources, Budget, and Finance National Association for Court Management 19 Importance of credibility The funding body, budget analysts, and public must perceive the court spends funds allocated to it wisely: Spend money on what you say you will Know the status of both expenditures and results on a real time basis Evaluate practice and programs for efficiency and effectiveness Stay on top of what is working and what isn’t and what needs changing

20. Resources, Budget, and Finance National Association for Court Management 20 Importance of credibility The funding body, budget analysts, and public must perceive the court spends funds allocated to it wisely: Answer queries honestly and forthrightly Be a “Team player” both as to goals and priorities and working with other justice system entities Consider regular information briefing sessions for funding authority

21. Resources, Budget, and Finance National Association for Court Management 21 Importance of credibility Skill in: Preparing Presenting, and Advocating the court’s budget In writing and In person

22. Resources, Budget, and Finance National Association for Court Management 22 Importance of Personal Relationships With budget analysts With the funding body With support groups of court programs (constituents, service providers, etc.) With the community With the public and media

23. Resources, Budget, and Finance National Association for Court Management 23 Resources, Budget and Finance Fundamentals Trends in Public Sector Budgeting

24. Resources, Budget, and Finance National Association for Court Management 24 Expectations from Funding Bodies Fixed ceiling and base line budgeting as the starting point Budgeting for outcomes Setting measurable outcomes for accountability

25. Resources, Budget, and Finance National Association for Court Management 25 Expectations from Funding Bodies Setting of Priorities—either by the court or “them” Expectations that courts will “partner” in requests for new funds Imposition of “efficiency” reductions in baseline budgets

26. Resources, Budget, and Finance National Association for Court Management 26 Greater Budget Discretion Lump Sum Budgeting Carry forward across fiscal years Use of special funds

27. Resources, Budget, and Finance National Association for Court Management 27 Concluding Summary Third branch – independence and responsibility Authority, limitations, and discretion Credibility, credibility, and credibility

28. Resources, Budget, and Finance National Association for Court Management 28 Discussion and Feedback Based on what you heard today: What is one thing you will do differently when you get to work tomorrow? What is one thing you need to learn how to do, or do better? What is one relationship you need to build, or repair, to improve your budget success?