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The federal Judiciary faces unprecedented funding challenges in the coming years because Congress is not likely to appropriate full funding to meet the courts' needs.

Conference Adopts Cost-Containment Plan in Wake of Limited Congressional Funding: Continues Push for Court Funds

Budget needs
Budget needs will be driven primarily by the number of judges and staff working in the courts, the amount they are paid, and the cost of the space they occupy, as well as by changes in workload.

Between 2004 and 2009, workload is projected to increase, with criminal filings rising 8 percent, the number of persons under supervision growing 12 percent, and the number of pretrial services cases activated increasing by 15 percent.

Without adequate funding from Congress and based on current Judiciary practices and policies, budget shortfalls in the Salaries and Expenses account could exceed $600 million by FY 2009. Mandatory and must-pay components of the budget such as judges' pay, chambers staff, and space rental costs, will increase from the current 59 percent of the total courts' Salaries and Expenses account to 72 percent of the account by FY 2009.

The Judiciary's space rent bill was nearly $900 million in FY 2004 and could reach $1.2 billion by 2009. Space rental payments constituted 16 percent of the Salaries and Expenses account in 1984, consume 22 percent now, and will consume 25 percent by FY 2009, based on current projections.

Information technology costs are projected to rise about 6 percent annually to $365 million by 2009.

Chief Justice asks Executive Committee to develop a cost-controlling strategy.
The Judicial Conference's Executive Committee was charged by Chief Justice William H. Rehnquist in March 2004 with conducting a review of the policies, practices, operating procedures, and customs that have the greatest impact on the Judiciary's costs, and with developing an integrated strategy for controlling costs in fiscal year 2005 and beyond.

The Executive Committee of the Judicial Conference sought ideas from judges, court officials and court advisory group members across the nation about ways to reduce costs. These suggestions were considered and evaluated by Judicial Conference committees. Dozens of possible long-term cost-containment initiatives have been identified.

Judicial Conference implements courthouse construction moratorium and other cost-containment measures.
In September 2004, the Judicial Conference agreed to implement a number of cost-containment measures, including a 2-year moratorium on 42 federal courthouse construction projects. Conference Adopts Cost-Containment Plan

This broad and intensive review yielded distinct and interrelated potential avenues for cost-containment. In addition to space and facilities cost control and workforce efficiency, the areas include:

Compensation Review: The Conference agreed to explore fair and reasonable opportunities to limit future compensation costs.

Effective Use of Technology: The Conference agreed to target its technology investments to enhance productivity and service, while controlling operating costs by revamping the service-delivery model for national information technology systems.

Program Modifications in Defender Services, Court Security, and Law Enforcement: The Conference will study and implement cost-effective modifications to these programs.

Fee adjustments: The Conference agreed to examine court fees regularly and when necessary adjust them to reflect economic changes. The various cost-containment measures approved by the Conference are intended to serve as a road map. Short- and long-term strategies to save money will continue to be discussed and studied.

Background on Congressional Action:

For Fiscal Year 2005, the Judiciary requested an appropriation of $5.7 billion, the amount needed to fund built-in cost growth and known workload increases.

On July 8, the House passed the Commerce, Justice, State, the Judiciary and Related Agencies appropriations bill. It provides the Judiciary with funding to maintain current services in courts at $5.546 billion. This would be a $4.177 billion funding level for the Courts Salaries and Expenses Account,a 5.6 percent increase over FY 2004.

In September, the Senate Appropriations Committee approved $5.4 billion for the Judiciary. This would be a $4.1 billion funding level for the Courts Salaries and Expenses Account, a 3 percent increase over FY 2004.

While a 9.8 percent increase was needed to fund fully built-in costs and workload needs in FY 2005, the 5.6 percent increase provided in the House-passed version of the Judiciary's appropriations bill approximates the amount needed to maintain the current level of court services that was funded in FY 2004.