What are Court Revenues?

While local courts often collect fees from litigants or defendants, the municipal government cannot impose a certain collection rate or revenue expectation upon the court. State law provides great leeway to judges to reduce or waive fees especially when a defendant is indigent. The revenue from the fines and forfeitures imposed by city and municipal courts can be substantial and all such revenues are deposited directly into the municipality’s general fund. For example, the court revenues from one of Montana’s larger municipalities exceeded $750,000, as compared to the court’s operating budget of about $200,000, and therefore resulted in a half million-dollar contribution to the city’s general fund budget. Certainly, the purpose of any court is not to serve as a revenue center for government but, rather to create and maintain the expectation of justice in the community. Nevertheless, city and municipal courts remain important contributors to a balanced budget in most municipalities. It is important to note, however, that included in a municipal budget is the cost of the police department and the city attorney’s office, both of which, along with the court itself, are essential public safety components of the community’s Montana Municipal Officials Handbook
24 justice system.