Courts secure another loan to make it through the year: workgroup proposes more stable funding alternatives.

Gov. Rick Scott has approved a $45.6 million loan requested by Chief Justice Charles Canady to keep the state's courts operating through next March.

Canady made the request after recent projections by state economists showed that foreclosure filings--which finance much of the state courts' activities--were lagging behind expectations, with the result that the courts would soon run short of money.

The request for the $45.6 million is beyond the $54 million loan made to the courts to begin the 2011-12 fiscal year. That loan was made in recognition of the continued slump in foreclosure filings but with the expectation that a rebound in filings would not only end the shortfall but allow the courts to repay the $54 million loan.

[ILLUSTRATION OMITTED]

Instead, the courts have had to ask for more money.

In making the initial loan request, Canady noted that the courts are not exceeding their approved budget, but the issue is purely a shortfall in expected revenues. He also said the Supreme Court has appointed, following a directive from the Legislature, a study group to work with court clerks and recommend funding alternatives.

That group, the Revenue Stabilization Workgroup, is working on recommendations that, among other things, seek to return the bulk of court and clerks funding to general revenue sources. A preliminary draft of that report--scheduled to be formally presented to the court for approval after this News went to press--notes the court system now generates more revenue than it keeps. The workgroup will suggest the funds the clerks collect go into a new Core Court System Clearing Trust Fund, that would then make an "initial distribution" to the state courts revenue and clerk of court trust funds to stabilize funding, with the rest paid quarterly into Florida's general revenue and "other agency" trust funds.

...