POLICY

It is estimated that 1 million Californians will have their tax refunds intercepted to pay off debts for outstanding parking tickets, tolls, and court fees. Of the almost $92 million the state kept from tax returns in 2021, $35 million was forfeited by low income residents who filed for tax credits.

WHY THIS POLICY DOESN’T WORK

A recent study found that fines and fees contributed to the criminalization of low-income defendants and placed them at risk of ongoing court involvement through new warrants, new debt, private debt collection, and tax intercepts.

POLICY

Due to the pandemic, Oklahoma courts have been shut down and not collecting enough money in fines and fees. As a result, the state legislature has announced that they do not plan to carry legislation on fines and fees this session, and will continue to rely on fines and fees to fund the courts. A 2019 report found in some Oklahoma courts, state appropriations accounted for just 10% of their operating costs and the rest came from collecting fines and fees.

WHY THIS POLICY DOESN’T WORK

For all the harm caused by fines and fees, they typically make up only a small fraction of government budgets. Read Vera’s reports on the impact of fines and fees in New York and Florida and the amount government agencies actually collect.

POLICY

The city of Adrian used their municipal court fund, where all traffic and citation fines are deposited, to pay bonuses for the chief and two officers.

WHY THIS POLICY DOESN’T WORK

When government and law enforcement actors gain from the imposition of criminal justice debt, it creates perverse incentives to maintain harmful and inequitable systems. Read more about the monetary myopia created by a short-sighted focus on revenue at the expense of other concerns.

POLICY

A Stow municipal court judge is alleged to have improperly incarcerated people who couldn’t pay fines and court fees and failed to account for individuals’ ability to pay or advise them of their right to counsel before sending them to jail. The complaint cites instances dating as far back as 2015. State law permits incarceration only for failure to pay fines, but requires a hearing to determine whether the person is refusing to pay or lacks the resources.

WHY THIS POLICY DOESN’T WORK

Debtor’s prisons come with devastating human costs and waste resources in an often fruitless effort to extract payments from defendants who may be homeless, unemployed, or simply too poor to pay. Read In for a Penny to learn more about the negative effects of debtor’s prisons on individuals, the economy, and the justice system.

 

POLICY

Senators voted 35-5 to give first-round approval to an amended version of LB17 that would double a court fee charged to support the judges retirement fund. The fee would increase from $6 per case to $8 by July 1, then continue increasing until it reached $12 in 2025.

WHY THIS POLICY DOESN’T WORK

Using fee and fine revenues to fund the judiciary can create perverse incentives and potentially distort the fair administration of justice. Read the findings from the Brennan Center’s report on criminal justice fines and fees as an unreliable and inefficient source of court and government funding.

 

POLICY

The Maryland legislature introduced a bill requiring the Motor Vehicle Administration (MVA) to suspend the driver’s license and registration of all vehicles in a person’s name if they fail to pay a money judgement from a motor vehicle insurer.

WHY THIS POLICY DOESN’T WORK

Read the American Legislative Exchange Council’s resolution encouraging state legislators to limit driver’s license suspension policies to conduct that involves dangerous driving. Join FFJC’s Free to Drive campaign to debt based driver’s license suspensions.

HALL OF FAME

In response the COVID-19 crisis, many jurisdictions have taken positive, first steps to reduce the harms of fines and fees, including discharging outstanding debts, repealing criminal legal fees and ending the cruel practice of suspending driver’s licenses on the basis of unpaid debt. These fines and fees reforms have and will continue to benefit millions of people around the nation — especially in low-income communities and communities of color.

Here are some of the most significant state and local reforms that have been enacted since the beginning of COVID-19 pandemic:

POLICY

Governor Baker’s new $48.5 billion budget proposal includes a plan to end the monthly fees Massachusetts charges those on probation and parole, including from those under supervision after being released from prison or jail. Under state law, those released from incarceration on parole must pay $80 in monthly supervision fees, while those on probation pay between $50 and $65 each month.

WHY IT WORKS

Failure to pay probation fees can lead to additional sanctions, including revocation and probation extension, and exacerbation of financial resources. Read this study of probation in Texas to learn more about how stress of avoiding these sanctions can affect the experience of probation and undermine probation goals.

POLICY

The city of Phoenix reached an agreement to write off all traffic debts 10 years or older and clear those suspensions. For debt incurred within the past decade, the city is offering a 50% discount through May 1 to drivers who still owe fines.

WHY IT WORKS

Traffic debt-based driver’s license suspensions make everyday life impossible. Without a license, many people are left unable to drive to work or care for their families. What’s more — suspending driver’s licenses because of debt often has a negative effect on businesses as people become unable to work and participate in their local economies. Watch this video on why driver’s license suspension laws make no sense.

POLICY

The Cumberland County District Attorney successfully petitioned the court to forgive court costs and fees for minor traffic violations at least five years old and have eligible debts forgiven. The decision resulted in more than 7,000 revoked driver’s being eligible for restoration. In North Carolina, unpaid fines and fees can result in a person having their license revoked.

WHY IT WORKS

A suspended license can result in negative consequences and economic hardships ranging from job loss, to restricted career opportunities and limited mobility. Researchers found 1,225,00 individuals with active driver’s license suspensions In North Carolina– 827,00 for failure to appear, 263,000 for failure to comply (failure to pay) and 135,00 for both. Learn more about their research and the constitutional concerns, practical challenges and implications of driver’s license suspensions.

 

POLICY

Illinois: For the second year in a row, low-income residents with outstanding fines won’t have money taken from their state income tax returns. Last year, due to the moratorium, $18 million in overdue fines and fees that would have otherwise been automatically taken out of residents’ tax refunds or other state-provided funding, was not collected.

WHY IT WORKS

Recent research shows that when struggling families were given cash payments spent the money on basic needs, with food representing the largest category of spending. Garnishing tax rebates and/or stimulus checks to pay for outstanding fines and fees will only widen that already vast divide between those who were able to make it out of the pandemic and those who were left behind.

POLICY

 The city of Birmingham launched the Stop and Go initiative which provides pardons for outstanding traffic and parking violations imposed in municipal court prior to January 1, 2011. The outstanding fines and fees total about $35 million.

WHY IT WORKS

17% of people surveyed in Alabama reported that they had committed a crime to pay for court costs, fines, or fees. Read The Burden of Criminal Justice Debt in Alabama for more on the collateral consequences of court costs on people in Alabama, including harsh penalties for nonpayment.

POLICY

Mayor Kennedy’s proposed spending plan would eliminate a $1 surcharge for items purchased at the jail commissary and allow incarcerated people 15 minutes of free phone time a day. The proposed budget also includes an allocation of nearly $2.2 million for up to one hour of free teleconference visits a week for inmates.

WHY IT WORKS

Limited communication with family and loved ones can lead to poor mental health, complicate efforts to post bail or build a defense, and increase the likelihood of recidivism after release. Read the Prison Policy Institute’s overview of prison and jail phone call fees and recommendations for reform.