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Rule 3-406

Rule 3-406. Budget and fiscalmanagement.

Intent:

To develop and maintain thepolicies and programs of the judiciary through sound fiscal management.

To provide for sound fiscalmanagement through the coordinated and cooperative effort of central and localauthorities within the judiciary.

To maintain accountability forappropriated funds, and to maintain a balanced budget.

To cooperate with the Governorand the Legislature in managing the fiscal resources of the state.

Applicability:

This rule shall apply to themanagement of all funds appropriated by the state to the judiciary.

Statement of the Rule:

(1) Fiscal programs and programdirectors established. For purposes of fiscal management, the judiciary isdivided into programs. Each program budget is managed by a program directordesignated by the state court administrator and approved by the ManagementCommittee.

The budget of a geographicdivision shall be managed by the court executive subject to the generalsupervision of the program director.

(2) Budget management.

(A) Responsibility of thecouncil. The responsibility of the Council is to:

(i) cooperate with the Governorand the Legislature in managing the fiscal resources of the state;

(ii) assure that the budget ofthe judiciary remains within the limits of the appropriation set by theLegislature; and

(iii) allocate funds asrequired to maintain approved programs and to assure a balanced judicialbudget.

(B) Responsibility of the statecourt administrator. It is the responsibility of the state court administratorto:

(i) implement the directives ofthe Council;

(ii) direct the management ofthe judiciary's budget, including orders to reduce or redirect allocations uponnotice to the Council; and

(iii) negotiate on behalf ofthe Council the position of the judiciary with the executive and legislativebranches.

(C) Responsibility of theadministrative office. It is the responsibility of the administrative officeto:

(i) clear all warrants andother authorizations for the payment of accounts payable for the availabilityof funds;

(ii) monitor all expenditures;

(iii) provide monthlyexpenditure reports by court to court executives, program directors, the statecourt administrator, Boards of Judges and the Council; and

(iv) develop a manual ofprocedures to govern the payment of accounts payable and the audit thereof. Theprocedures shall be in conformity with generally accepted principles ofaccounting and budget management.

(D) Responsibility of theprogram directors. Within their respective programs, it is the responsibilityof the program directors to:

(i) comply with the directivesof the Council and the state court administrator;

(ii) administer the reductionor redirection of allocations;

(iii) monitor all expenditures;

(iv) supervise and manage courtbudgets in accordance with the manual of procedures; and

(v) develop recommendations forfiscal priorities, the allocation of funds, and the reduction or redirection ofallocations.

(E) Responsibility of courtexecutives. Within their respective courts, it is the responsibility of courtexecutives to:

(i) comply with the directivesof the Council, the state court administrator, and the program director, and toconsult with the presiding judge and the individual judges of that jurisdictionconcerning budget management;

(ii) develop work programs thatencumber no more funds than may be allocated, including any reduction inallocation;

(iii) amend work programs asnecessary to reflect changes in priorities, spending patterns, or allocation;

(iv) credit and debit accountsthat most accurately reflect the nature of the planned expenditure;

(v) authorize expenditures;

(vi) prepare warrants and otherauthorizations for payment of accounts payable for submission to theAdministrative Office;

(vii) monitor all expenditures;and

(viii) develop recommendationsfor fiscal priorities, the allocation of funds, and the reduction orredirection of allocations.

(F) Process. After thelegislative general session the state court administrator shall consider allsources of funds and all obligated funds and develop a recommended spendingplan that most closely achieves the priorities established by the Council atthe prior annual planning meeting. The state court administrator shall reviewthe recommended spending plan with the Management Committee and present it tothe Judicial Council for approval.

(3) Budget development.

(A) Responsibility of thecouncil. It is the responsibility of the Council to:

(i) establish responsiblefiscal priorities that best enable the judiciary to achieve the goals of itspolicies;

(ii) develop the budget of thejudiciary based upon the needs of organizations and the priorities establishedby the Council;

(iii) communicate the budget ofthe judiciary to the executive and legislative branches; and

(iv) allocate funds to thegeographic divisions of courts in accordance with priorities established by theCouncil.

(B) Responsibility of theboards. It is the responsibility of the Boards to:

(i) develop recommendations forfunding priorities; and

(ii) review, modify, andapprove program budgets for submission to the Council.

(C) Responsibility of the statecourt administrator. It is the responsibility of the state court administratorto:

(i) negotiate on behalf of theCouncil the position of the judiciary with the executive and legislativebranches; and

(ii) develop recommendations tothe Council for fiscal priorities and the allocation of funds.

(D) Responsibility of theadministrative office. It is the responsibility of the Administrative Officeto:

(i) develop a schedule for thetimely completion of the budget process, including the completion of allintermediate tasks;

(ii) assist program directorsand court executives in the preparation of budget requests; and

(iii) compile the budget of thejudiciary.

(E) Responsibility of theprogram directors. Within their respective programs, it is the responsibilityof program directors to review, modify, and approve budget requests.

(F) Responsibility of courtexecutives. Within their respective courts, it is the responsibility of courtexecutives to:

(i) work closely with presidingjudges, judges, and staff to determine the needs of the organization; and

(ii) develop a budget requestthat adequately and appropriately meets those needs.

(G) Process.

(i) Each Board of Judges, eachcourt and committee and each department of the administrative office of thecourts may develop, prioritize and justify a budget request. The courts shallsubmit their requests to the appropriate Board of Judges. The committees andthe departments of the AOC shall submit their requests to the state courtadministrator.

(ii) The Boards shallconsolidate and prioritize the requests from the courts and the requestsoriginated by the Board. The state court administrator shall consolidate andprioritize the requests from the committees and departments.

(iii) The state courtadministrator shall review and analyze all prioritized budget requests anddevelop a recommended budget request and funding plan. The state courtadministrator shall review the analysis and the recommended budget request andfunding plan with the Council.

(iv) At its annual planningmeeting the Council shall consider all prioritized requests and the analysisand recommendations of the state court administrator and approve a prioritizedbudget request and funding plan for submission to the governor and thelegislature.

(4) General provisions.

(A) Appropriations dedicated bythe Legislature or allocations dedicated by the Council shall be expended inaccordance with the stated intent.

(B) All courts and theAdministrative Office shall comply with the provisions of state law and themanual of procedures.

(C) Reductions in allocations,reductions in force, and furloughs may be ordered by the state courtadministrator with notice to the Council. In amending the work program toreflect a budget cut, reductions in force and furloughs shall be used only whenabsolutely necessary to maintain a balanced budget. If reductions in force arenecessary, they shall be made in accordance with approved personnel procedures.If furloughs are necessary, they should occur for no more than two days per payperiod.