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County Funding of Court Related Functions <br /> Requirement for 1.5% Annual Increase in Expenses <br /> Summary <br /> Section 29.008(4)(a), Florida Statutes essentially requires counties to increase funding for <br /> "court-related functions" by 1.5% per year. This requirement impedes the ability of counties to <br /> reduce expenditures in times of declining revenue. It is inconsistent with conservative fiscal <br /> policy as there is no ability to make long-term reductions in spending on this function. Indian <br /> River County asks for an amendment to this statute removing the requirement to increase <br /> funding. Counties need to have the ability to make allocations based upon available revenues <br /> and the needs of the court system rather than an arbitrary automatic increase. <br /> Prior Legislative Adjustments <br /> In recognition of the substantial decline in revenues during the Great Recession, the legislature <br /> has amended this law to allow for a one-time exception for fiscal year 2012/13. For this one <br /> NNW fiscal year, counties have to maintain level funding. In 2013/14, the 1.5% increase requirement <br /> returns. While this legislation was helpful, the change was inadequate in for two reasons. First, <br /> the law only allows for expenditures to remain the same. There is no ability to decrease <br /> funding in light of a continued reduction in revenues. Counties should be able to decrease <br /> expenditures as has been done in other service areas. Additionally, the exemption is for one <br /> year. This requirement needs to be eliminated permanently. <br /> Designated Revenue Stream Decreases <br /> This funding requirement was defined during the Article V Revision 7 to the State constitution <br /> in 2004. Revision 7 was the implementing legislation to bring the State into compliance with a <br /> constitutional amendment approved by the voters in 1998 requiring the State to fund most <br /> costs of the court system. The legislation provided various revenue streams to counties that <br /> were intended to fund the expenditures for which the counties maintained responsibility. <br /> These revenue streams have declined dramatically from their peak levels in the 2004-2006 time <br /> period. For example, a $2 recording fee authorized under Section 28.24(12)(e), Florida Statutes <br /> provides funding for court technology needs. This revenue stream has dropped from $624,693 <br /> in 2005 to $221,882 last year, a decrease of 64.5%. However, counties have not had the ability <br /> f:\budget\iason\legislative\county funding of court related functions.docx <br /> 11/27/2012 <br /> 223 <br />