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Judicial Funding Cuts Inflict Widespread Economic Harm in Communities

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ABA Journal News: Savings produced by court budget cuts are exceeded by harmful economic effects (white paper)

The white paper, “The Economics of Justice,” by Eric J. Magnuson, Steven M. Puiszis, Lisa M. Agrimonti, and Nicole S. Frank (DRI, 2014)

Press release: “DRI White Paper: Judicial Funding Cuts Inflict Widespread Economic Harm in Communities

“…. Salaries make up as much as 96 percent of court budgets, the white paper says. Budget cuts result in job losses, diminished tax revenues for local governments, and the increased expense of unemployment benefits.

Cuts also slow resolution of civil cases. The uncertainty caused by pending cases makes businesses reluctant to spend money on equipment, additional employees and expanded product lines, which also affects the local economy, the paper concludes.
….

The Florida study, for example, concluded that the backlog in foreclosure cases caused by underfunding of the state court system resulted in a $9.9 billion annual loss to the state’s economy in direct costs, and an additional $7.2 billion in indirect costs.’ [Link to full ABA news story and White Paper.]