by David Royse
The News Service of Florida
Facing an immediate $72 million shortfall because of the unforeseen slowdown in foreclosures to wrestle with the “robosigning” scandal, Supreme Court Chief Justice Charles Canady is asking lawmakers and Gov. Rick Scott to approve emergency transfers to avoid furloughs of court personnel.
“To meet the current funding crisis, the judicial branch has already implemented an emergency branchwide hiring freeze and an emergency operating budget freeze,” Canady wrote in a letter to Scott dated last week.
But that won’t be enough without additional help to deal with the shortfall, said Canady.
“If the current revenue shortfall … is not remedied, it will be necessary for the judicial branch to impose extensive furloughs of court system personnel,” wrote Canady. “Such furloughs would cause a severe disruption in the functioning of the courts.”
Lawmakers in 2009 created the State Courts Revenue Trust Fund, which is filled by fees paid into by court system users. The trust fund makes up about three-quarters of the state court system’s total budget.
The fees filed as part of the foreclosure cases have filled the fund over the past year, but in recent months lenders have faced allegations of irregularities in processing foreclosures, such as the use of “robosigners” to push through cases without adequate review.
The response has been a virtual halt in foreclosures, which has seriously depleted the courts budget.
Payroll and operating expenses of the entire judicial branch are propped up by the trust fund, and 77 percent of the trust fund money was projected to come from real estate and mortgage foreclosure filing fees this year.
Canady has sent to Scott and to the Legislature’s top two budget writers, Sen. J.D. Alexander and Rep. Denise Grimsley, a detailed plan for where to find the money, saying that much of it may be able to be paid back if foreclosures pick up again.
Most of the emergency cash would come from moving money from other places in the budget, although a $21 million supplemental appropriation is also envisioned by Canady.
While some specific funding sources, such as a mediation trust fund, are identified as sources for the emergency money, the largest source in his proposal is $28 million simply listed as needing to come from “other funds.”
The plan hasn’t yet been approved by Scott or legislative leaders, Supreme Court spokesman Craig Waters said Monday.
Canady noted that the courts are hoping to reduce the system’s reliance on foreclosure filing fees, likely by shifting more of its funding back to general revenue.
“Ensuring our citizens access to the courts requires stability and predictability in the funding supporting court operations,” wrote Canady.
State Courts Administrator Lisa Goodner told lawmakers about the crisis in late February, shortly after a revenue forecast shed light on the problem, which was largely unforeseen.
Goodner said in an interview with The News Service of Florida earlier this month that there appeared to be broad agreement between lawmakers and the governor’s office that something would be done to try to avoid major disruptions in court functions.