Oversight Committee Investigates Millions in Misallocation by the Judicial Branch
This week my colleagues and I on the House Government Oversight Committee met to discuss the improper distribution of over $26 million dollars of court debt by the Judicial Branch. For almost three hours Oversight members asked questions in an effort to better understand how this large amount of money could be misallocated with no one tell the legislature or other groups impacted.
The Judicial Branch is required to distribute court fees and fines based on a formula set in the Iowa code. Fees and fines are paid to the clerk of court in all 99 counties. That money is then distributed, by the Courts, to the General Fund, other state funds and non-state funds (primarily counties). Over the past four years, the annual total collected has been between $140 and 150 million.
In 2020 and 2021 the General Assembly adopted two bills that made several changes in how these fees and fines are distributed. The bills passed with overwhelming bi-partisan support and were expected to be implemented by the courts.
By the fall of 2020, the Judicial Branch was informed by one group that money was not going to the correct location, and by 2021 it was clear there was a significant problem. From 2020 until late 2024 the Judicial Branch attempted to find the problem and fix it, but during that same time, money was continually being misplaced.
In the fall of 2022, the Department of Transportation altered the State Auditor’s Office and the courts of a fiscal irregularity in the collection and distribution of fine money paid for tickets issued by Motor Vehicle Enforcement officers in fiscal years 2021 and 2022. The State Auditor’s Office acknowledged receipt of the notice and said they take it from there and be touch with follow up questions. The annual audits, many of which were issued years late, of the Judicial Branch do not indicate the State Auditor did anything to rectify these issues.
In late 2024, members of the legislature were notified by the Judicial Branch that there were misallocations over the past four years that totaled over $26 million. House Republicans immediately began asking questions to better understand how and why the courts chose to keep this information to themselves until the problem was overwhelming. Those answers led to many more questions.
The first Oversight meeting reveled many concerning things, including that the courts have spent over half a million dollars of taxpayer money in an attempt to correct their misallocation issue, but even then, the problem is not completely resolved. Representatives expressed their concern that no one from the Judicial Branch bothered to bring up any programing or misallocation issues for over four years while this money was being sent to the wrong accounts.
Groups impacted by the Judicial Branch’s misallocation include;
- Victims Compensation Fund
- Human Trafficking Victim Fund
- Juvenile Detention Home Fund
- Emergency Medical Services fund
- DARE Surcharge
- Criminalistics Laboratory Fund
- Motor Carrier Fines to the Road Use Tax Fund
Members made it clear that they were not upset there were programing errors but that they were upset it took over four years, half a million dollars of tax payer money and $25 million of misallocation for anyone to bring this to the attention of the legislature.
Members of the Oversight committee will continue to ask questions of the Judicial Branch and others involved in this significant issue. |