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Sequestration would deepen staff cuts, chief judges warn

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Federal courts that have squeezed staff as budgets shrank could be forced to furlough employees if Congress fails to avoid mandatory budget cuts that now are slated to take effect in March.

Chief Judge James K. Coachys of the U.S. Bankruptcy Court for the Southern District of Indiana said that court staff could be furloughed without pay for one day of each 10-day pay period if sequestration cuts occur. Under sequestration, non-exempt non-defense discretionary spending would be reduced by 8.2 percent.
 

Coachys_James-1col.jpg Chief Judge James K. Coachys (IL Photo/ Perry Reichanadter)

“We’ve got a plan in place,” Coachys said, noting funds would be available to meet payroll for one to two pay periods after the potential cuts begin in early March. “At the end of March, we’d be starting some kind of furlough program.”

The same is likely true for the District Court for the Southern District, said Chief Judge Richard Young.

“We’ve been preparing for sequestration in the event that it does occur. We would more than likely have to furlough employees in the clerk’s office and probation staff, and also maybe furlough from chamber staff as well,” he said.

Young said furloughs could be one or two days per pay period. “We would try to allocate furloughs as evenly as

we can so that one court function is not unduly affected.

“We have no intention of closing the court” a day a week, he said. “That has been discussed in some other districts.”

Coachys and Young each sent letters to the Indiana State Bar Association requesting the organization’s assistance before the most recent run up to the fiscal cliff that was averted with an eleventh-hour deal on Jan. 1. That deal forestalled mandated cuts for two months.

After ISBA President Daniel Vinovich presented those letters to the bar, the Board of Governors in November instructed him to write a letter to the Indiana congressional delegation supporting full funding of federal courts.

“Our message was basically concerned about the impact sequestration would have on the federal system, and ensure such funding be in place despite the pending sequestration,” said Vinovich, a partner at the Hilbrich Law Firm in Highland. He said no such requests had been made from judges in the courts of the Northern District of Indiana, though the across-the-board cuts under sequestration would apply equally to all districts.

Chris DeToro, clerk of the Bankruptcy Court for the Northern District of Indiana in South Bend, said no decision had been made about furloughs or what might happen if cuts are mandated in March. “I think that’s really difficult to assess unless and until we actually see the impact,” he said. “We may have an impact on the level of services we can provide.”

Despite a tough economy, bankruptcy caseloads have declined in recent years. Final numbers aren’t in, but DeToro said the tally for 2012 should be just less than 13,000 filings, compared with 15,370 in 2011. That’s a decrease of 15 percent in the Northern District.

In the Southern District, about 21,000 cases were filed in 2012, compared with 22,000 the prior year and a 10-year average of 27,000 cases. This trend has been seen in other Bankruptcy courts across the country, Coachys said.

“Ours was a double-whammy of a new formula (for court funding) and a drop in case filings,” Southern District Bankruptcy Court Clerk Kevin Dempsey said.

The option of furloughs makes sense if fiscal-cliff cuts are mandated because they would be expected to be temporary, Coachys said.

He noted that federal court budgets consume only about 0.2 percent of federal discretionary spending. “For us it means across-the-board cuts that would happen with sequestration are much more devastating. We don’t have discretionary programs,” Coachys said.

As a result, the cuts would reduce funds available for basic functions. “At some point with sequestration, you’re going to run out of money to pay jurors,” Coachys said. “That’s a real impact on people.

“There could be delays in getting discharges out, delays in getting hearing dates set,” he added.

Sequestration would be in addition to cuts imposed on the courts as budgets have declined in recent years. For the Southern District Bankruptcy Court, they are in addition to expected cuts to come. Coachys said that since the end of fiscal year 2011, court staff has been cut from 73 to 58.

Further, Coachys said he expects the Southern District Bankruptcy Court’s $5.5 million budget for the current fiscal year to decline by as much as 10 percent next year.

The prospect of fiscal-cliff cuts has been stressful for court staff. “It means they’re very insecure about their positions,” he said. “It’s certainly not very different from what people in the private sector are going through.

“There’s a perception that government jobs may be cush jobs but very secure jobs” with stable pay and benefits, Coachys said, noting that he bristles at such views based on the work done by his court staff in Indianapolis, Evansville, New Albany and Terre Haute. “It’s simply not the case anymore, if it ever was.”

Dempsey said the clerks hope the furloughs, if they come to pass, won’t affect service, but the impact would be difficult to predict before the cuts take place.

“Federal employees generally haven’t seen pay raises for several years,” he said. “It does definitely make it more challenging for morale, and I don’t think court employees are unique.”

Coachys said judges speculate the reason for the decline in bankruptcy filings may be due to unemployed people deemed judgment-proof as well as fewer people able to afford filing fees, which rose in December.

“We’re expecting filings to go up in 2013 for a number of reasons,” he said. Unemployment is expected to fall, possibly prompting more filings. The eight-year prohibition on refiling contained in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 also will expire, which could create a surge of filings.

The federal courts have already tightened their budgets under cost-containment programs. As examples, attorneys now are responsible for serving notice to parties in their cases, Coachys explained, and court staffs are being shared more between the District and Bankruptcy courts.

Young said the Southern District Court has cut back on travel and arranged video conferencing more often. A hiring freeze has been in place for years, and items such as furniture and office equipments are “replaced only when absolutely necessary.”

The District Court for the Southern District hasn’t been hit as hard as the Bankruptcy Court because its caseload numbers haven’t declined. “Attrition has been able to shield us from layoffs,” Young said.•

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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