New Jersey’s Computerized Collection Fund: Helping Courts Collect Fines and Fees

New Jersey courts collect millions of dollars in fines, fees, and other financial penalties each year. In 2009, the state legislature passed a law establishing the Computerized Collection Fund to help courts improve fine and fee collection through technology upgrades. Here’s an overview of how the fund works and its impact.

What is the Computerized Collection Fund?

The Computerized Collection Fund, established under N.J.S.A. 2C:46-1.1, allows courts to retain a portion of the fines, fees, and other financial penalties they collect to pay for computer upgrades and other collection-related technology. Specifically, courts can keep 10% of the money they bring in through collections to put towards these tech improvements.

The fund aims to help courts modernize their collection systems, with the goal of increasing efficiency and the amount of revenue collected overall. More money collected means more funding for court operations and state/local programs supported by court fines and fees.

How does the 10% retention work?

Here’s a quick rundown of how the 10% retention works:

• Courts deduct 10% from the fines, fees, and other financial penalties they collect. This 10% share goes into the Computerized Collection Fund.
• The remaining 90% gets distributed as required by law – for example, to state and local programs or general treasury funds.
• Monies in the Computerized Collection Fund can only be used for collection-related technology, like new case management systems, payment portals, data analytics, etc.
• Funds don’t expire, so courts can save up for large projects if needed. Any money left over carries forward each year.
• The collection fund is managed at the state level. The NJ Administrative Office of the Courts oversees distribution of the monies to local courts through grant applications.

What can the fund money be used for?

There’s a lot of flexibility in how courts can use their share of the Computerized Collection Fund. By law, the money can be used to pay for any technology that will directly assist with collections. This includes:

• New case management and accounting systems
• Online payment portals
• E-filing and document management systems
• Data mining and analytics software
• Text and email reminder systems
• Credit card processing equipment
• Collection agency fees
• Staff training on collections technology

As long as the tech helps improve fine and fee collection, courts can pay for it using the fund.

What’s the impact been so far?

Since going into effect in 2009, the Computerized Collection Fund has generated over $42 million for New Jersey courts to reinvest into their collection operations.

Many courts have used the money to implement new case management systems, vastly improving their ability to track fines and fees. Online payment options have expanded, allowing people to pay tickets and court costs remotely. Data mining helps identify collection issues faster. Staff have received training to use collections technology more effectively.

While it’s hard to quantify the exact impact, the upgrades have certainly helped increase the revenue courts take in. Statewide collection rates have improved in recent years, even as caseloads have grown. Courts collected over $600 million in 2018 alone.

The Collection Fund has allowed courts to modernize without relying on additional state funding. And upgrades funded by the 10% share continue to enhance collections year after year. It’s a self-sustaining funding source for better court technology.

Possible issues and controversies

Of course, the Computerized Collection Fund also has some controversies and downsides worth noting:

• Is it appropriate for courts to keep a share of fines and fees they impose? Some argue this creates a conflict of interest when judges determine penalties.
• Do upgrades actually improve efficiency or just serve to increase revenue? More money collected doesn’t necessarily equal better justice.
• Does reliance on fines and fees disproportionately impact low-income individuals? Concerns exist about burdensome court debt.
• Does the added revenue adequately fund upgrades needed? Ten percent may not provide sufficient funds for major projects.
• Are there adequate controls on how money is spent? Critics worry about inappropriate use of the funds.

The Collection Fund aims to give courts resources to enhance fine and fee collection through technology. But it also highlights larger debates about the role of monetary penalties in the justice system. Reasonable minds can disagree on the appropriate policies.

Ongoing operation and oversight

The Computerized Collection Fund remains in effect today and continues providing technology funding for New Jersey courts. The Administrative Office of the Courts manages the program and distributes funds through grant applications.

Use of the money is governed by policies set out in the state Court Rules. Courts submit annual spending plans and year-end reports on how they’ve used collection fund monies. The AOC can audit court spending and require reimbursement for inappropriate uses.

As technology evolves and new collection approaches emerge, the Computerized Collection Fund gives New Jersey courts a dedicated funding source to pay for upgrades. For over a decade, the 10% share has expanded court capabilities and enhanced fine and fee collection across the state.