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: Kentucky Law Blog

AOC: Courthouse construction program creating financial crisis in courts; $76 million increase in funding needed to continue to enable courts to stay open 5 days a week, 52 weeks per year per AOC Director

By Michael Stevens

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Dollar_Sign Kentucky.com story on budget woes of AOC and financial strain created by courthouse construction initiative in the face of a weakening economy.  

State struggles to pay for new courthouses

By Linda B. Blackford - lblackford@herald-leader.com



The state court system laid off 47 people last fall, and judicial officials say they're looking at even more drastic measures in the upcoming budget cycle.



If the courts don't get a $76 million increase in funding, "we will have to see whether we can operate five days a week, 52 weeks a year," said Laurie Dudgeon, director of the Administration Office of the Courts.



Even though most other state agencies face cuts, Gov. Steve Beshear has recommended an extra $50 million from the General Fund for the courts, both to make up for past budget cuts and to pay for new courthouses that will be opening in the next two years.



Most of that money will be used for 38 new courthouses that will open over the next two years. That means the state has to start paying off the bonds used for construction.



Since 2000, $880 million has been appropriated for new courthouses that are part of a program designed by former Chief Justice Joseph E. Lambert that was aimed at putting a new courthouse in all 120 counties.



The state must start paying for the courthouses, or the counties will default on the bonds. So the court system's budget will have to be cut in other areas. But the judicial branch's financial conundrum ? in the midst of one of Kentucky's worst fiscal crises ever ? is raising questions about the politically popular but expensive courthouse construction program.

"I am very supportive of our courthouse project, but on a statewide basis, there wasn't a lot of thought given to how this money would be paid back," said Fleming County Judge Executive Larry Foxworthy.

Fleming County floated $11.5 million in bonds to build its new courthouse.

"It will be a big asset to us, but things could have been done to save more money," Foxworthy said. "These questions needed to be asked before the General Assembly obligated the state to this kind of payback."

Shelby County also floated bonds for its new courthouse, $18.4 million worth.

"In my opinion, the entire program was way too aggressive," said Shelby Judge Executive Rob Rothenburger. "Based on all the projected revenues, the AOC should have slowed down with these projects. I would have looked at what we could have done to renovate more courthouses."

click on heading above for remainder of story

Full post as published by Kentucky Law Blog on February 04, 2010 (boomark / email).

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