CCOC REBASING WORKSHOP

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CCOC REBASING WORKSHOP Powered By Docstoc
					       CCOC
REBASING WORKSHOP

  Sheraton Suites Orlando
       May 31, 2007
                                           AGENDA
I. Welcome and Workshop Agenda Objectives

II. What’s “Rebasing?” A Review.
     –     The requirements Law.
     –     The required methodology and rationale.
     –     The relationship of “rebasing” to setting “Expenditure Caps.”

III. What’s happened because of “Rebasing” and “Expenditure Caps?”
     –     Rebasing results: for FY 2005-06 and FY 2006-07.
     –     Rebasing impacts on FY 2006-07 “Expenditure Caps” and trends.
     –     Trends in court related expenditures, revenues and workloads and their implications.
     –     Rebasing impacts on FY 2007-08 “Expenditure Caps” and “Expenditure Cap” trends.

IV. What are budget problems caused by “Rebasing” and “Expenditure Caps?”
     –     A. Rebasing results that reduce FY 2006-07 Budget Caps.
     –     B. Shrinking “FY 2007-08 Expenditure Caps” due to rebasing and FY 2007-08 revenue
           projections.
     –     C. Local revenue collection trends less than expenditure trends.
     –     D. Possible negative impacts on meeting performance standards.

V. What are budget problem solution options: within current law and requiring changes in law?
            Such as:
     –     Budget Request changes.
     –     Increasing revenues.
     –     Court policy changes.
     –     Trust Fund flexibility.
     –     Expenditure cap method changes.

VI. Next Steps
                           What’s Rebasing: A Review
The Requirements of Law: F.S. 28.36 (5a)
For county fiscal year 2007-08, the rebased budget for CFY 2005-06 shall be adjusted for the actual % change in
     revenue between the two 12 month periods ending June 30, 2006 and June 30, 2007. This result is the
     rebased budget for county FY 2006-07. The rebased budget for county fiscal year 2006-07 shall be adjusted
     by the projected percentage change in revenue between the county fiscal years 2006-07 and 2007-08. This
     result shall be the maximum annual budget amount for the standard list of court-related functions of the
     clerks of court in s.28.35(4)(a) that may be funded from fees, service charges court costs, and fines retained
     by the clerks of the court for CFY 2007-08


       State Rationale: The State assumes that more cases produce more revenues to pay for the more work
       required; if the output measure “# of cases” goes up, then additional revenues come in to pay for the
       effort required to work them. If cases go down then there is less work and less revenues are needed.


The Required Methodology                            See CCOC Rebasing Template


How are “Rebasing” and “Expenditure Cap Setting” Related?

 1. Assume: Rebased FY 2006-07 Revenues went up +5% (vs. original est. of + 3%)

 2. Multiply 5% X Rebased FY 2005-06 Budget = Rebased FY 2006-07 Expend. Cap

 3. Multiply the Rebased FY 2006-07 Expend. Cap X your projected FY 2007-08 revenue
 growth rate = FY 2007-08 Expenditure Cap!
                   REBASING IN SUMMARY


Each Clerk’s FY 2005-06 Expenditure Cap was “rebased” last year.



    That “rebased” FY 2005-06 Expenditure Cap X a projected revenue
    growth rate in FY 2006-07 resulted in a FY 2006-07 Expenditure Cap
    for each Clerk. (However, a Clerk’s “CCOC Budget Request” could
    be under the Cap)



              The FY 2006-07 Expenditure Cap is now being preliminarily
              “rebased” and the result will be multiplied X a Clerk’s projected
              FY 2007-08 over FY 2006-07 revenue growth rate to get a FY
              2007-08 EXPENDITURE CAP.
             REBASING IN DETAIL SINCE FY 2004-05


                                                                    In FY 2007-08, an
In FY 2004-05                                                       Expenditure Cap is
there was a 3%                                                      being calculated by (1)
Expenditure Cap   In FY 2005-06, an
                                                                    “rebasing” the FY 2006-
imposed on each   Expenditure Cap
                                         In FY 2006-07, an          07 over FY 2005-06
Clerk’s Budget    was calculated
                                         Expenditure Cap was        revenue growth rate
……..as required   based on (1)                                      (from estimated to projected
                  multiplying each       calculated based on (1)
in law.                                                             actual) and (2)
                  Clerk’s estimated      “rebasing the FY 2005-
AND A FY 2004-                                                      multiplying that growth
                  % revenue              06 revenue growth rate
05 BUDGET WAS                                                       rate X the “rebased” FY
                  growth rate from       (from estimated to
APPROVED.                                                           2005-06 Expenditure
                  FY 2004/05             actual) X the Approved
                                                                    Cap to determine the
                  through FY 2005-       FY 2004-05 budget =
                                                                    “rebased” FY 2006-07
                  06 X the FY 2004-      the “rebased” FY 2005-
                                                                    Expenditure Cap, and (3)
                  05 Appr. Budget.       06 Expenditure Cap
                                                                    multiplying that rebased
                                         which was (2)
                  AND A FY 2005-                                    Cap X the Clerk’s
                                         multiplied X the Clerk’s
                  06 BUDGET WAS                                     estimated FY 2007-08
                                         estimated FY 2006-07
                  APPROVED.                                         revenue growth rate
                                         revenue growth rate
                  (could be lower than                              over FY 2006-07.
                                         over FY 2005-06.
                  the “Cap”)
                                                                    AND THE CLERK WILL
                                         AND A FY 2006-07
                                                                    SUBMIT A FY 2007-08
                                         BUDGET WAS
                                                                    BUDGET REQUEST
                                         APPROVED (could be
                                                                    (which may be below his/her
                                         lower than the “Cap”)
                                                                    “Cap.”
Rebasing Template
                                           Revenue Projection Template Using Key Factors

                                                                   Impact on FY 05/06   Potential Impact on
                                                                     over FY 04/05       FY 06/07 over FY
    Clerks 05/06                                                       Revenues           05/06 Revenues
      Revenue                                                                                                       Preliminary Revenue
    Projection(%)                     KEY FACTORS                    % (+)    % (-)       % (+)      % (-)               Projection
                       1        Collections Program Changes                                                                  0.00%
                       2               Natural Disasters
                       3               Civil Emergencies                                                        $                             -
  Clerks 05/06         4             Major County Events
Actual Revenue         5             Economic Conditions
Growth Rate(%)         6      NAY Major Law Enforcement Activity                                                 Revenue Projection(%)
                       7            NAY Population Change                                                       after Clerk's Adjustment
                       8         New Fees or Change in Fees
                      11   Major Changes in Cases and Defendants
                              (Due to More Judges / Magistrates)
   Clerks 05/06       12   Major Changes in Cases and Defendants                                                       Projected 06/07
 Actual Revenue                     (Due to New Functions)                                                                Revenue
$                     13                      Other                                                             $                             -
                      14                      Other                                                                 Part I of Exhibit A of Clerks
    Rebased 05/06     15                      Other                                                                    06/07 Budget Forms
     Expenditure      16                      Other
     Budget CAP       17                      Other                                                                    Initial FY 06/07
$                     18                      Other                                                                   Expenditure Cap
Taken from Rebasing        * NAY = Non Average Year                      0.00%                 0.00%            $                             -
     Template                                                                                                   Will appear on Part II of Exhibit
                                                                      Total 05/06       Total 06/07 Potential
                                                                                                                  A of Clerks 06/07 Budget
                                                                   Estimated Impact            Impact                       Forms
 What’s Happening because of
Rebasing and Expenditure Caps?
FY 2005-06 and FY 2006-07 Rebasing Trends
FY 2005-06 and FY 2006-07 Rebasing Trends
             What are important “stats” to review
                    to determine whether
“Rebasing” and “Revenue Growth Rate-based Expenditure Caps”
                        are working?



                                     For All 67 Clerks’ Offices
                                  FY 2004-05   FY 2005-06     FY 2006-07
                                         growth rate   growth rate

Actual Revenue Growth Rates


Rebased Rev. Growth Rates

Actual Expenditure Growth Rates

CAP Growth Rates


Actual Workload Growth Rate
                  ACTUAL REVENUE GROWTH RATES
                      FOR 67 CLERKS’ OFFICES
                                                  CFY 2005-06 to CFY 2006-07
                     CFY 2004-05 to CFY 2005-06    TREND w/5 months to go

Negative Growth                    7                        14

0 – 5% Growth                     15                        19

5.1% to 10%                       21                        18

10.1 % to 20%                     20                        13

20.1% to 30%                       3                         1

Above 30%                          1                         2
                                  REBASED
                          REVENUE GROWTH RATES
                         FOR ALL 67 CLERKS’ OFFICES

SFY 2004-05 to SFY 2005-06 = 12.2 % average   SFY 2005-06 to SFY 2006-07 = 12.85% average



                    Growth Rate Average Over the 2 Fiscal Years:

 Negative Growth                                     4 Clerks’ Offices

 0 – 5% Growth                                       5 Clerks’ Offices

 5.1% to 10%                                       20 Clerks’ Offices

10.1 % to 20%                                      28 Clerks’ Offices

20.1% to 30%                                         8 Clerks’ Offices


Above 30%                                            2 Clerks’ Offices
                            ACTUAL
                  EXPENDITURE GROWTH RATES
                    FOR 67 CLERKS’ OFFICES
                   CFY 2004-05 to CFY 2005-06   CFY 2005-06 to CFY 2006-07

Negative Growth                   9

0 – 5% Growth                   12
                                                 Unreliable trend
5.1% to 10%                                      based on 4 months
                                22               to go in CFY
10.1 % to 20%                   22
20.1% to 30%                      1

Above 30%                         1
                  ACTUAL CAP GROWTH RATES
                    FOR 67 CLERKS’ OFFICES
                                                FY 2005-06 to FY 2006-07
                    CFY 2004-05 to FY 2005-06            TREND

Negative Growth                 6                         6

0 – 5% Growth                  21                         5

5.1% to 10%                    28                         5

10.1 % to 20%                   8                        25

20.1% to 30%                    4                        20

Above 30%                       0                          6
    ACTUAL CRIM. DEFENDANT/CIVIL CASE GROWTH RATES
                 FOR 67 CLERKS’ OFFICES

                  CFY 2004-05 to CFY 2005-06   CFY 2004-05 to CFY 2005-06

Negative Growth

0 – 5% Growth

5.1% to 10%

10.1 % to 20%

20.1% to 30%

Above 30%
     Clerks’ Budgets and the Operations Trust Fund

                                  CFY 2004-05   CFY 2005-06   CFY 2006-07


Receiving $ from the Trust Fund
                                       27           22           29

Sending $ to the Trust Fund            40           45           38
     What Are Rebasing & Expenditure Cap Related
                     PROBLEMS
1. FY 2006-07 revenue collections may be less than projected at the
    beginning of the Fiscal Year for some Clerks’ budgets, causing a
    “rebasing” of the FY 2006-07 Expenditure Cap DOWNWARD…..which
    may cause the FY 2007-08 Expenditure Cap to be less than expected.

2. Some Clerks’ Expenditure “caps” may be growing but at a lower rate
    than basic expenditure increase rates (e.g. to cover workloads not
    producing revenues, insurance benefit increases, low cost of living
    raises for employees)….. especially affecting smaller counties.

3. For some Clerks’ budgets, Expenditure “caps” may be less than
    expected due to the need to lower projections for FY 2007-08 local
    revenue growth rates over FY 2006-07.

4. For some Clerks’ Offices, if Expenditure Caps decrease below certain
    levels, it may be difficult to keep staff workloads at a reasonable level
    which could affect the ability to meet “Timeliness” and “Collection
    Rate” performance standards.
  Where are rebasing related “Problems” most likely?


  Preliminary indications: there are 5 smaller counties with potentially
   severe problems due to their size (e.g. limited staff with many different
   duties)

EXAMPLES:

County 1: 2 yrs. of cuts in actual revenues collected; 2 yrs. with
  expend. cuts; 2 years of revenue rebasing cuts; receives $ 20,000
  month from Trust Fund; 14% cut in Expenditure Cap for FY 2006-07
  over FY 2005-06.


County 2: 2 years of double digit cuts in actual revenues; - 14% revenue
rebasing for FY 1006-07 over FY 2005-06; while expenditures are up from
previous year; contributes almost $ 17,000 a month to the Trust Fund
     What are budget problem solution options?


1.    Review budget preparation strategies: re-allocations,
      spending cuts, operating efficiencies to curtail cost
      increases?

2.    Find ways to increase revenues to increase “expenditure
      cap” potential?

3.    Give CCOC flexibility to supplement especially small court
      budgets when revenue growth rates cannot provide minimum
      “expenditure cap” funding need levels (e.g. for retaining a
      minimum number of staff necessary to operate the office)?

4.    Request a change in the rebasing/ expenditure cap setting
      policies (e.g. an expenditure cap “floor”)?

				
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