CHICAGO - Ferguson, Mo. police engaged in unlawful and discriminatory practices partially driven by the city's reliance on court fine revenue to support its budget, according to a stinging report by the federal government..
The U.S. Department of Justice's Civil Rights Division conducted the review after a white Ferguson police officer shot to death Michael Brown, who was black and was unarmed, in August.
The division sought to determine whether police and the courts engaged in widespread patterns or practices in violation of the law or U.S. Constitution, and its answer was "yes."
Questions over aggressive policing tactics and the heavy reliance on court fines to prop up local government budgets followed the shooting and the widespread protests it inspired; critics say stiff court fines imposed by local governments like Ferguson's result in aggressive policing tactics that disproportionally target low-income residents.
The scathing federal report concluded the city's law enforcement practices violate the law and undermine community trust, especially among the city's African-American community.
"According to our investigation, this emphasis on revenue generation through policing has fostered unconstitutional practices - or practices that contribute to constitutional violations - at nearly every level of Ferguson's law enforcement system," Attorney General Eric Holder said in remarks that accompanied the release of the report Wednesday.
Along with taxes and other revenue streams in 2010, the city collected over $1.3 million in fines and fees collected by its court. For fiscal year 2015, Ferguson's city budget anticipates fine revenues to exceed $3 million - more than double the total from just five years earlier, according to the report. The increase was not tied to crime figures.
"Our review of the evidence, and our conversations with police officers, have shown that significant pressure is brought to bear on law enforcement personnel to deliver on these revenue increases," Holder said. The report recommended reforms that included greater oversight over municipal courts statewide.
Ferguson Mayor James Knowles III responded to the report saying that the city has taken action with an ordinance limiting the use of revenue generated by court fines and fees to 15% of its budget. The city has also revised various policies on collections.
Gov. Jay Nixon, who previously appointed a task force to examine a broad number of issues raised by Brown's shooting, including local governments' reliance on court fines, called the federal report disturbing. The findings demonstrate "the urgent need for the reforms I have called for, some of which the General Assembly is now considering, including reforms to municipal courts," Nixon said in a statement.
State lawmakers are advancing legislation that would tighten limits how much local governments can rely on court-related fines. Current state rules in legislation that's referred to as Mack's Creek Law cap traffic ticket income at 30% of a municipality's general operating revenue.
Pending legislation would lower the threshold for smaller cities, towns, or villages to 20% with larger cities facing a more stringent cut to 10%. The changes would be imposed statewide but some court systems in smaller counties would be exempt.
All cities, towns, and villages would be required to produce an addendum to their annual financial reports submitted to the state auditor with an accounting of total revenues from fines, bond forfeitures, and court costs for traffic violations and the percent of annual general operating revenue from traffic violations.
The Missouri State Auditor's office previously announced plans to audit 10 municipal court systems, including Ferguson's. The audits are reviewing the systems for compliance with accounting practices, racial and gender statistics on warrants, and adherence to current revenue limits.
A series of lawsuit have been filed challenging municipal ticketing operations by advocacy groups.
Moody's Investors Service recently shifted its outlook on Ferguson's Aa3 general obligation rating to negative over its use of reserves to paper over budget deficits. The city's credit standing has so far weathered the civil unrest that followed the shooting largely due to its flush reserves.
