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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. I have been on this program while on parole from 2011-2013. No person should be forced mentally to share private details of their personal life with total strangers. Also giving permission for a mental therapist to report to your parole agent that your not participating in group therapy because you don't have the financial mean to be in the group therapy. I was personally singled out and sent back three times for not having money and also sent back within the six month when you aren't to be sent according to state law. I will work to het this INSOMM's removed from this state. I also had twelve or thirteen parole agents with a fifteen month period. Thanks for your time.

  2. Our nation produces very few jurists of the caliber of Justice DOUGLAS and his peers these days. Here is that great civil libertarian, who recognized government as both a blessing and, when corrupted by ideological interests, a curse: "Once the investigator has only the conscience of government as a guide, the conscience can become ‘ravenous,’ as Cromwell, bent on destroying Thomas More, said in Bolt, A Man For All Seasons (1960), p. 120. The First Amendment mirrors many episodes where men, harried and harassed by government, sought refuge in their conscience, as these lines of Thomas More show: ‘MORE: And when we stand before God, and you are sent to Paradise for doing according to your conscience, *575 and I am damned for not doing according to mine, will you come with me, for fellowship? ‘CRANMER: So those of us whose names are there are damned, Sir Thomas? ‘MORE: I don't know, Your Grace. I have no window to look into another man's conscience. I condemn no one. ‘CRANMER: Then the matter is capable of question? ‘MORE: Certainly. ‘CRANMER: But that you owe obedience to your King is not capable of question. So weigh a doubt against a certainty—and sign. ‘MORE: Some men think the Earth is round, others think it flat; it is a matter capable of question. But if it is flat, will the King's command make it round? And if it is round, will the King's command flatten it? No, I will not sign.’ Id., pp. 132—133. DOUGLAS THEN WROTE: Where government is the Big Brother,11 privacy gives way to surveillance. **909 But our commitment is otherwise. *576 By the First Amendment we have staked our security on freedom to promote a multiplicity of ideas, to associate at will with kindred spirits, and to defy governmental intrusion into these precincts" Gibson v. Florida Legislative Investigation Comm., 372 U.S. 539, 574-76, 83 S. Ct. 889, 908-09, 9 L. Ed. 2d 929 (1963) Mr. Justice DOUGLAS, concurring. I write: Happy Memorial Day to all -- God please bless our fallen who lived and died to preserve constitutional governance in our wonderful series of Republics. And God open the eyes of those government officials who denounce the constitutions of these Republics by arbitrary actions arising out capricious motives.

  3. From back in the day before secularism got a stranglehold on Hoosier jurists comes this great excerpt via Indiana federal court judge Allan Sharp, dedicated to those many Indiana government attorneys (with whom I have dealt) who count the law as a mere tool, an optional tool that is not to be used when political correctness compels a more acceptable result than merely following the path that the law directs: ALLEN SHARP, District Judge. I. In a scene following a visit by Henry VIII to the home of Sir Thomas More, playwriter Robert Bolt puts the following words into the mouths of his characters: Margaret: Father, that man's bad. MORE: There is no law against that. ROPER: There is! God's law! MORE: Then God can arrest him. ROPER: Sophistication upon sophistication! MORE: No, sheer simplicity. The law, Roper, the law. I know what's legal not what's right. And I'll stick to what's legal. ROPER: Then you set man's law above God's! MORE: No, far below; but let me draw your attention to a fact I'm not God. The currents and eddies of right and wrong, which you find such plain sailing, I can't navigate. I'm no voyager. But in the thickets of law, oh, there I'm a forester. I doubt if there's a man alive who could follow me there, thank God... ALICE: (Exasperated, pointing after Rich) While you talk, he's gone! MORE: And go he should, if he was the Devil himself, until he broke the law! ROPER: So now you'd give the Devil benefit of law! MORE: Yes. What would you do? Cut a great road through the law to get after the Devil? ROPER: I'd cut down every law in England to do that! MORE: (Roused and excited) Oh? (Advances on Roper) And when the last law was down, and the Devil turned round on you where would you hide, Roper, the laws being flat? (He leaves *1257 him) This country's planted thick with laws from coast to coast man's laws, not God's and if you cut them down and you're just the man to do it d'you really think you would stand upright in the winds that would blow then? (Quietly) Yes, I'd give the Devil benefit of law, for my own safety's sake. ROPER: I have long suspected this; this is the golden calf; the law's your god. MORE: (Wearily) Oh, Roper, you're a fool, God's my god... (Rather bitterly) But I find him rather too (Very bitterly) subtle... I don't know where he is nor what he wants. ROPER: My God wants service, to the end and unremitting; nothing else! MORE: (Dryly) Are you sure that's God! He sounds like Moloch. But indeed it may be God And whoever hunts for me, Roper, God or Devil, will find me hiding in the thickets of the law! And I'll hide my daughter with me! Not hoist her up the mainmast of your seagoing principles! They put about too nimbly! (Exit More. They all look after him). Pgs. 65-67, A MAN FOR ALL SEASONS A Play in Two Acts, Robert Bolt, Random House, New York, 1960. Linley E. Pearson, Atty. Gen. of Indiana, Indianapolis, for defendants. Childs v. Duckworth, 509 F. Supp. 1254, 1256 (N.D. Ind. 1981) aff'd, 705 F.2d 915 (7th Cir. 1983)

  4. "Meanwhile small- and mid-size firms are getting squeezed and likely will not survive unless they become a boutique firm." I've been a business attorney in small, and now mid-size firm for over 30 years, and for over 30 years legal consultants have been preaching this exact same mantra of impending doom for small and mid-sized firms -- verbatim. This claim apparently helps them gin up merger opportunities from smaller firms who become convinced that they need to become larger overnight. The claim that large corporations are interested in cost-saving and efficiency has likewise been preached for decades, and is likewise bunk. If large corporations had any real interest in saving money they wouldn't use large law firms whose rates are substantially higher than those of high-quality mid-sized firms.

  5. The family is the foundation of all human government. That is the Grand Design. Modern governments throw off this Design and make bureaucratic war against the family, as does Hollywood and cultural elitists such as third wave feminists. Since WWII we have been on a ship of fools that way, with both the elite and government and their social engineering hacks relentlessly attacking the very foundation of social order. And their success? See it in the streets of Fergusson, on the food stamp doles (mostly broken families)and in the above article. Reject the Grand Design for true social function, enter the Glorious State to manage social dysfunction. Our Brave New World will be a prison camp, and we will welcome it as the only way to manage given the anarchy without it.

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