After Ferguson, revenue structures of local governments became a sensitive topic due to the new scrutiny of the distribution of fines and fees. While the report has brought more attention to the way in which this revenue is collected, it has not changed the fact that many local governments are still heavily reliant upon these fees for financial stability. For these entities, the push to minimize fines and fees poses a challenge to long term operations.
Research conducted by Governing Magazine this past summer illustrated funding trends for city governments across the nation and discovered that small towns, in particular, are largely funded by fine revenue. In fact, the study reports that there are approximately 600 small local governments whose fine collection represented more than 10% of their overall revenue; 284 of which exceeded 20%. In addition to that data, the report found in some instances local governments were exceeding the state-imposed revenue caps, and as many as 80 reported that fines represented more than half their general revenue.
While the attention this data is getting remains focused upon the potential impact it has on citizen communities and relative fairness or potential for over fining, it fails to recognize what may be the most obvious concern: What would these local governments do without that funding?
For example, many cities cited in the report were criticized for employing an excessive number of police officers for their population size. While there may be good evidence in some instances of needless fining, such as the case in Doraville, Georgia where residents eventually sued over frivolous fining for minor infractions, much of the fine revenue cited in these instances are from traffic infractions, mainly speeding. It raises the question of where to draw the line — surely citing speeding infractions is a reasonable effort to improve public safety?
While there is no question it is essential for local governments to operate ethically, especially in regard to revenue and expenditure, a balance must be maintained in order to ensure basic functions can be carried out. Fines are a proven way to enforce the law and can never be fully eliminated; likewise, these organizations cannot properly run off of taxation alone. Local governments must take care to review their fine and fee structures to ensure reasonability. Efforts can be made to reduce or remove additional penalties that have been proven to negatively impact communities, such as jail time for unpaid fees, and result in even bigger revenue loss for municipalities in the long term. Furthermore, to ensure the imposition of fines or fees won’t disproportionately impact lower-income citizens; efforts to provide reasonable payment plans must be promoted and made available to citizens with financial need.
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