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Rule3-406. Budget and fiscal management.

 

Intent:

 

Todevelop and maintain the policies and programs of the judiciary through soundfiscal management.

 

Toprovide for sound fiscal management through the coordinated and cooperativeeffort of central and local authorities within the judiciary.

 

Tomaintain accountability for appropriated funds, and to maintain a balancedbudget.

 

Tocooperate with the Governor and the Legislature in managing the fiscalresources of the state.

 

Applicability:

 

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

 

Statementof the Rule:

 

(1) Fiscal programs and program directors established. For purposes offiscal management, the judiciary is divided into programs. Each program budgetis managed by a program director designated by the state court administratorand approved by the Management Committee.

 

The budget of ageographic division shall be managed by the court executive subject to thegeneral supervision of the program director.

 

(2) Budget management.

 

(A) Responsibility of the council. The responsibility of the Council isto:

 

(i)cooperate with the Governor and the Legislature in managing the fiscalresources of the state;

 

(ii) assurethat the budget of the judiciary remains within the limits of the appropriationset by the Legislature; and

 

(iii) allocatefunds as required to maintain approved programs and to assure a balancedjudicial budget.

 

(B) Responsibility of the state court administrator. It is theresponsibility of the state court administrator to:

 

(i)implement the directives of the Council;

 

(ii) directthe management of the judiciary's budget, including recommendations to reduceor redirect allocations; and

 

(iii) negotiateon behalf of the Council the position of the judiciary with the executive andlegislative branches.

 

(C) Responsibility of the administrative office. It is theresponsibility of the administrative office to:

 

(i)clear all warrants and other authorizations for the payment of accounts payablefor the availability of funds;

 

(ii) monitorall expenditures;

 

(iii) provide monthly expenditurereports by court to court executives, program directors, the state courtadministrator, Boards of Judges and the Council; and

 

(iv) developa manual of procedures to govern the payment of accounts payable and the auditthereof. The procedures shall be in conformity with generally acceptedprinciples of accounting and budget management.

 

(D) Responsibility of the program directors. Within their respectiveprograms, it is the responsibility of the program directors to:

 

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

 

(ii) administerthe reduction or redirection of allocations;

 

(iii) monitorall expenditures;

 

(iv) superviseand manage court budgets in accordance with the manual of procedures; and

 

(v) developrecommendations for fiscal priorities, the allocation of funds, and thereduction or redirection of allocations.

 

(E) Responsibility of court executives. Within their respectivecourts, it is the responsibility of court executives to:

 

(i)comply with the directives of the Council, the state court administrator, andthe program director, and to consult with the presiding judge and the individualjudges of that jurisdiction concerning budget management;

 

(ii) developwork programs that encumber no more funds than may be allocated, including anyreduction in allocation;

 

(iii) amendwork programs as necessary to reflect changes in priorities, spending patterns,or allocation;

 

(iv) creditand debit accounts that most accurately reflect the nature of the plannedexpenditure;

 

(v) authorizeexpenditures;

 

(vi) preparewarrants and other authorizations for payment of accounts payable for submissionto the Administrative Office;

 

(vii) monitorall expenditures; and

 

(viii) developrecommendations for fiscal priorities, the allocation of funds, and thereduction or redirection of allocations.

 

(F) Process. After the legislative general session the state courtadministrator shall consider all sources of funds and all obligated funds anddevelop a recommended spending plan that most closely achieves the prioritiesestablished by the Council at the prior annual planning meeting. The statecourt administrator shall review the recommended spending plan with theManagement Committee and present it to the Judicial Council for approval.

 

(3) Budget development.

 

(A) Responsibility of the council. It is the responsibility of theCouncil to:

 

(i) establish responsible fiscal priorities that best enable thejudiciary to achieve the goals of its policies;

 

(ii) developthe budget of the judiciary based upon the needs of organizations and thepriorities established by the Council;

 

(iii) communicatethe budget of the judiciary to the executive and legislative branches; and

 

(iv) allocatefunds to the geographic divisions of courts in accordance with prioritiesestablished by the Council.

 

(B) Responsibility of the boards. It is the responsibility of theBoards to:

 

(i) develop recommendations for funding priorities; and

 

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

 

(C) Responsibility of the state court administrator. It is theresponsibility of the state court administrator to:

 

(i) negotiate on behalf of the Council the position of thejudiciary with the executive and legislative branches; and

 

(ii) implementthe Council?s fiscal priorities and allocation of funds.

 

(D) Responsibility of the administrative office. It is the responsibilityof the Administrative Office to:

 

(i)develop a schedule for the timely completion of the budget process, includingthe completion of all intermediate tasks;

 

(ii) assistprogram directors and court executives in the preparation of budget requests;and

 

(iii) compilethe budget of the judiciary.

 

(E) Responsibility of the program directors. Within their respectiveprograms, it is the responsibility of program directors to review, modify, andapprove budget requests.

 

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

 

(i) work closely with presiding judges, judges, and staff todetermine the needs of the organization; and

 

(ii) developa budget request that adequately and appropriately meets those needs.

 

(G) Process.

 

(i) EachBoard of Judges, each court and committee and each department of theadministrative office of the courts may develop, prioritize and justify abudget request. The courts shall submit their requests to the appropriate Boardof Judges. The committees and the departments of the AOC shall submit theirrequests to the state court administrator.

 

(ii) The Boards shall consolidate andprioritize the requests from the courts and the requests originated by theBoard. The state court administrator shall consolidate and prioritize therequests from the committees and departments.

 

(iii) The state court administratorshall review and analyze all prioritized budget requests and develop arecommended budget request and funding plan. The state court administratorshall review the analysis and the recommended budget request and funding planwith the Council.

 

(iv) At its annual planning meeting theCouncil shall consider all prioritized requests and the analysis and recommendationsof the state court administrator and approve a prioritized budget request andfunding plan for submission to the governor and the legislature.

 

(4) General provisions.

 

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

 

(B) All courts and the AdministrativeOffice shall comply with the provisions of state law and the manual ofprocedures.

 

(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.

EffectiveMay 1, 2020