January 30, 2014Jacksonville, FloridaDoug 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 decliningExpenditures are outpacing revenuesNot enough depository counties to sustain trust

fund in long termThere are “key” factors for the declineThe Trust Fund relies heavily on “Big 6”

counties; but all counties can do their partThere 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” Clerks4 = Large Counties, 7 = Medium/Large Counties,

3 = Medium Counties, 5 = Small Counties

48 “Funded” ClerksOf the 48 Clerks that are “Funded”

9 = Offices within 90% of fully funding annual expendituresIncreasing collections 4% ($2.4 Million) will cover

annual expenditures16 = Offices within 80% of fully funding annual

expendituresIncreasing collections 15% ($9.0 Million) will cover

annual expenditures23 = 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 Fund10% fine monies to PRMTF$80 filing fee (changed June 2013)

Other factorsNo filing fee for civil indigent cases (since 2009)Reopen case filing feesLocal diversion programsLower amount of tickets and assessmentsJudicial waivers and community serviceJudgment liensLess civil casesEconomy

There is Another FactorCollections

“ 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?

How are The “Big 6” Counties Doing?

How are the Small Counties Doing?

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 stateWe 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

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 ProgramFor large counties estimated $400,000 to

$500,000 annuallyFor median-size counties $150,000 to $200,000

annuallySmall 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 QuestionsWhat 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 groupsEncourage development of local pilot programsDevelop court collection plansNon-renewal vehicle registration for failure to payWage and bank account garnishmentDeny application for professional licenseDeny or suspend recreational licenses (boating, hunting,

fishing)Amnesty programs

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

What is the Challenge?

It Can Be DoneLake 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 PrinciplesHonorable Tara Green- Clerk, Clay CountyHonorable Maryanne Morse– Clerk, Seminole

CountyMs. Kristi Wagstaff—Collection Enforcement

Mgr., Polk County

John Dew, CCOC Executive DirectorDoug Isabelle, CCOC Budget Director

850-386-2223Russ Duncan, Court Compliance Specialist

352-601-7526