Courts could still run short of funds.

Despite a $54 million loan to begin the 2011-12 fiscal year, Florida courts still face the prospect of running out of money because foreclosure filings are lagging behind predictions, according to Supreme Court Chief Justice Charles Canady.

Canady addressed the Bar Board of Governors at its July 29 meeting in Palm Beach and said the court will continue to need support from the Bar on legislative issues, particularly on budget matters.

Two years ago, the Legislature created an operating trust fund for the court system, funding it with higher filing fees, particularly on foreclosures. Foreclosure filings eventually became more than 50 percent of the state courts system's funding.

But in the wake of allegations about forged documents and poorly prepared paperwork, the number of foreclosure filings nationally and in Florida plunged late last year, turning what had been expected to be a surplus in the court operating trust fund into a deficit. The courts needed a $28.5 million loan from other state funds in order to complete the 2010-11 fiscal year without a shutdown of courts.

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Recognizing that foreclosure filings remained relatively low, Canady said the Legislature approved a $54 million loan to help the courts through the start of the 2011-12 fiscal year. However, the state's revenue estimating conference projected that foreclosure filings would pick up later this year, enabling the courts to complete the year without additional borrowing.

"The challenges go on, and we face another shortfall in our budget this year," Canady told the board. "We have seen a slight uptick in foreclosure filings. If that continues, it still will not be enough to produce the revenues that have...