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HomeMy WebLinkAboutResolutions - 2000.04.13 - 25911MISCELLANEOUS RESOLUTION #00 N2 _ BY: COMMISSIONER MICHELLE FRIEDMAN APPEL, DISTRICT #23 IN RE: COURT EQUITY FUND TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, the Court Equity Fund was established by statute (MCL 600.151b) and became effective October 1, 1996. Numerous court fees are deposited into the State Court Fund, with a majority of that revenue flowing through to the Court Equity Fund. The Court Equity Fund also receives some additional sources of court revenue and a significant amount of state general fund dollars; and WHEREAS, Oakland County's District Courts contribute to the Court Equity fund in two ways: (1) direct contributions to the Court Equity Fund from the $4.25 that is collected on every criminal and civil judgment and (2) contributions to the State Court Fund, wherein 80% of these contributions are passed through to the Court Equity Fund; and WHEREAS, the State of Michigan's District Courts are divided into 3 classifications: 1st Class District Courts that consist of 1 or more counties in which each county is responsible for funding the district court; 2' Class District Courts that consist of a group of political subdivisions within the county and the county is responsible for funding the district court; and 3rd Class District Courts that consist of 1 or more political subdivisions within the county and each political subdivision is responsible for funding the district court; and WHEREAS, the complex statutory formula for distribution of the Court Equity fund involves two factors: the caseload activity of the local Circuit and Probate Courts and the number of circuit, probate and district court judgeships allocated to each county; and WHEREAS, Oakland County includes the 3rd Class District Court judgeships for purposes of receiving Court Equity Funds, but excludes 3 Class District Courts from the distribution of those funds; and WHEREAS, Oakland County has only 2' and 3' Class District Courts. 2' Class District Courts were initially located in areas with low density population and were therefore unable to support their own courts due to smaller caseloads from which little revenue was generated. These 2nd Class District Courts have now grown and currently are located in the developed communities of Clarkston, Novi, Rochester and Troy; and WHEREAS, Oakland County's 2nd Class 52nd District Courts have the added advantage of receiving funding from the Oakland County General Fund and the Court Equity Fund, to subsidize their court operations; and Michelle Friedman Appel District #23 - (9- k Alvad449 *(0 WHEREAS, the local communities of the 52" District Courts receive revenue generated from their local District Courts and have no responsibility to contribute any revenue to court operating costs; and WHEREAS,12akland County's 3' Class non-52' District Courts, located in Berkley, Bloomfield 1 Farmington, Ferndale, Hazel Park, Madison Heights, Oak Park, Pontiac, Royal Oak, Southfield and Waterford Township, also contribute to the Court Equity Fund; and WHEREAS, in Fiscal Year 1998/1999, Oakland County District Courts contributed $2.5 million to the Court Equity Fund of which $1.57 million (63%) was contributed by non- 52 District Courts and $927,686 (37%) was contributed by the 52' District Courts. WHEREAS, Oakland County receives nearly $6.5 million annually from the Court Equity Fund, none of which is made available to fund non-52" District Courts. The burden of operating the non-52'd District Courts falls exclusively upon the local taxpayers; and WHEREAS, a serious inequity occurs when the non-52' District Courts do not benefit from receiving Court Equity Fund disbursements. The taxpayers within the non- 52' District Court communities are adversely affected; and WHEREAS, there is no legal impediment to prevent Oakland County from disbursing a portion of the Court Equity Fund to the 3' Class communities; and WHEREAS, alternative distribution formulas must be explored that would at least minimize the inequity that the present method of funding courts has upon the residents, courts and communities serviced by Oakland County's non-52"d District Courts. NOW THEREFORE BE IT RESOLVED THAT the Oakland County Board of Commissioners does hereby support a Court Equity Fund distribution formula that incorporates funding for the Oakland County 3rd Class District Courts. BE IT FURTHER RESOLVED THAT the Oakland County Board of Commissioners does hereby authorize the Department of Management and Budget, Fiscal Services Division, to annually apportion an amount equal to twenty-five (25%) percent of the Court Equity Fund that is to be distributed to Oakland County's 3rd Class District Courts on a pro rata basis based on caseload (excluding parking), to supplement the District Court budget. Chairperson, I move the adoption of the foregoing Resolution. Resolution #00082 April 13, 2000 The Chairperson referred the resolution to the Public Services Committee, the General Government Committee and the Finance Committee. There were no objections.