Federal Courthouses: Rent Increases Due to New Space and Growing
Energy and Security Costs Require Better Tracking and Management
(22-JUN-06, GAO-06-892T).
The judiciary pays over $900 million in rent annually to GSA for
court-related space, representing a growing proportion of the
judiciary's budget. The judiciary's rent payments are deposited
into GSA's Federal Buildings Fund (FBF), a revolving fund used to
finance GSA's real property services, including the construction
and repair of federal facilities under GSA control. In December
2004, the judiciary requested a $483 million dollar permanent,
annual rent exemption which GSA denied, saying that it undermined
the intent of FBF and that GSA was unlikely to obtain
appropriations to replace lost FBF income. GAO reviewed (1)
recent trends in the judiciary's rent and space occupied and (2)
challenges that the judiciary faces in managing its rent costs.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-892T
ACCNO: A55850
TITLE: Federal Courthouses: Rent Increases Due to New Space and
Growing Energy and Security Costs Require Better Tracking and
Management
DATE: 06/22/2006
SUBJECT: Budget obligations
Federal courts
Federal property management
Interagency relations
Rent policies
Rental rates
Federal Buildings Fund
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-06-892T
* Background
* Increases in Square Footage and Operating and Security Costs
* Judiciary Faces a Number of Challenges but Could Take Action
* Recommendations
* Agency Comments
* Scope and Methodology
* GAO Contacts and Staff Acknowledgements
* Order by Mail or Phone
Testimony
Before the Subcommittee on Economic Development, Public Buildings and
Emergency Management, Committee on Transportation and Infrastructure,
House of Representatives
United States Government Accountability Office
GAO
For Release on Delivery Expected at 11:00 a.m. EDT
Thursday, June 22, 2006
FEDERAL COURTHOUSES
Rent Increases Due to New Space and Growing Energy and Security Costs
Require Better Tracking and Management
Statement of Mark L. Goldstein, Director Physical Infrastructure Issues
GAO-06-892T
Mr. Chairman, Ranking Democratic Member, and Members of the Subcommittee:
Thank you for the opportunity to testify before you today on our work
related to federal courthouse rents. Since the early 1990s, the General
Services Administration (GSA) and the federal judiciary1 have undertaken a
multibillion dollar courthouse construction initiative to address what the
judiciary has identified as growing needs. According to the Administrative
Office of the U.S. Courts (AOUSC), the judiciary's workload has grown
substantially and the number of court staff has doubled since 1985. The
judiciary pays over $900 million in rent annually to GSA to occupy
court-related space, and this amount represents a growing proportion of
the judiciary's budget. The rent payments, which by law approximate
commercial rates, are deposited into GSA's Federal Buildings Fund (FBF).
With slightly over 20 percent of its budget allocated for rent payments,
in December 2004, the judiciary requested a $483 million permanent, annual
exemption from rent payments to GSA so that according to judiciary
officials, the judiciary would not have to cut personnel to pay the rent.
In denying the judiciary's requested rent exemption, GSA noted that FBF
was designed to encourage efficient space utilization by making agencies
accountable for the space they occupy, and that it is unlikely GSA could
obtain direct appropriations to replace lost FBF income. In June 2005, we
testified2 that federal agencies' rent payments provided a relatively
stable, predictable source of revenue for FBF, but that this revenue has
not been sufficient to finance both growing capital investment needs and
the cost of leased space. In fact there have been several direct
appropriations to FBF to cover this funding gap. We also found that
previous rent exemptions, such as the one requested by the judiciary,
hampered GSA's ability to generate sufficient revenue for needed capital
investment. You asked us to review the judiciary's courthouse rent costs.
Today my testimony will discuss (1) recent trends in the judiciary's rent
payments and square footage occupied; and (2) challenges that the
judiciary faces in managing its rent costs. My statement is based on our
report that will also be released today.3 In summary, we found the
following:
1 The federal judiciary is comprised of 94 judicial districts organized
around state boundaries and grouped into 12 regional circuits, each of
which has a United States Court of Appeals. There is also a 13th Circuit,
the Court of Appeals for the Federal Circuit, which has nationwide
jurisdiction to hear appeals in specialized cases, such as those involving
patent laws and cases decided by the Court of International Trade and the
Court of Federal Claims.
2 GAO, Courthouse Construction: Overview of Previous and Ongoing Work,
GAO-05-838T (Washington, D.C.: June 21, 2005).
o About two-thirds of the judiciary's $210 million rent increase
from fiscal years 2000 through 2005 is attributable to a 19
percent increase in net square footage. The remaining increase is
attributable to disproportionately high increases in security and
operating costs. We also found that neither the judiciary nor GSA
had routinely and comprehensively analyzed the factors influencing
the rent increases. In the report released with this testimony, we
recommended that the judiciary begin tracking and analyzing rent
trends in order to improve its understanding and ability to manage
its rent costs. The judiciary agreed that tracking trends is
necessary, but said that the specific types of data we recommended
would not be particularly useful for program planning, management,
or budgeting purposes.
o The judiciary faces several challenges to managing its rent
costs including costly architectural and structural requirements
for modern courthouses, a lack of incentives for efficient space
use, and a lack of space allocation criteria for appeals and
senior district judges. AOUSC also identified several challenges
in addition to the ones we identified, including statutorily
designated places of holding court, the benefits to GSA and the
Federal Buildings Fund of backfilling courthouses with other
courts, and inconsistencies in the funding stream for courthouse
construction projects. In our report released with this testimony,
we recommended that the judiciary establish incentives to
encourage local decision makers to use space efficiently and
improve its space allocation criteria in a number of ways. The
judiciary disagreed that additional space allocation criteria are
needed for appeals courts and senior judges, and said that it has
already started updating its space allocation criteria related to
technological advancements and plans to consider other changes in
the future.
Federal agencies, including the judiciary, that operate in
facilities under the control and custody of GSA are required to
pay rent for the space they occupy. Rent payments, which by law
must approximate commercial rates, are deposited into the FBF,
which is a revolving fund that GSA uses to provide a range of real
property services, including maintenance, repairs, and
alterations, to space occupied by federal agencies. GSA, through
FBF, encourages federal agencies to be accountable for the space
they use by requiring them to budget and pay for their own space
requirements. A committee report accompanying the enactment of FBF
noted that because each agency would have to budget for its space
needs, doing so would promote more efficient and economical use of
space by government agencies.4 The judiciary's rent payments
represent roughly 15 percent of all rent payments made into FBF,
making it one of the two largest contributors.5
On the basis of a rent pricing policy introduced in the late
1990s, the rent GSA charges is composed principally of shell rent,
operating expenses, tenant improvements, and security costs. These
components account for over 96 percent of the judiciary's rent
bill payments in fiscal year 2005.
o The shell rent represents the cost of using the structure, base
building systems, concrete floor, and basic wall and ceiling
finishes and is the largest rent component, representing 60
percent of the judiciary's annual rent bill payments in fiscal
year 2005.6 For most government-owned properties, shell rent does
not represent the actual costs, but is based instead on comparable
private sector commercial rents in the local commercial market.
o Tenant improvements reflect customizing space for that tenant
and can include private offices, special type spaces, floor
covering, doors, and wood finishes. The tenant is responsible for
deciding how to finish the space beyond some basic minimum
standards and thus has control over much of the cost. GSA
officials have said that the judiciary has the highest costs for
tenant improvements in its inventory because of the level of
finishes needed in federal courthouses. Unlike the other rent
components, tenant improvement costs are removed from the rent
bill once the tenant has completely paid for them.
o Operating costs-which cover cleaning; general maintenance; and
heating, air conditioning, and other utilities-are set as part of
the market appraisal for the shell rent in owned space. But unlike
the shell rent, operating costs are adjusted annually for
inflation in between appraisals.
o Until fiscal year 2005, the judiciary paid Federal Protective
Service (FPS) security costs to GSA as part of its rent payment.
Starting in fiscal year 2005, however, the judiciary began paying
these security costs directly to the Department of Homeland
Security (DHS) after FPS was transferred to that department.
However, since FPS security costs still exist, and they were an
important part of rent for all of the other years we analyzed, we
included these costs as if they were still part of annual rent
bill payments for fiscal year 2005.
o Rent is also composed of several other components, including
fees for parking, building joint use, antennas, and GSA's Public
Buildings Service. These other components comprised about 4
percent of the judiciary's entire rent bill in fiscal year 2005.
The Judicial Conference of the United States (Judicial Conference)
is the judiciary's principal policy making body. The Judicial
Conference works in coordination with AOUSC, which is responsible
for administering the federal judiciary's budget as well as
performing other programmatic and administrative functions, such
as paying the judiciary's rent bill from its annual appropriations
from Congress. Each circuit has a judicial council, which is
composed of federal judges in that circuit, and the council has
the authority to determine the need for all space accommodation
within its circuit. As such, the district, bankruptcy, and appeals
courts occupy space in courthouses or lease space in other federal
or private office buildings. The district courts are the trial
courts of the federal court system, housing both district and
magistrate judges. They occupy the most space within the federal
judiciary. The district courts have jurisdiction to hear nearly
all categories of federal cases, including both civil and criminal
matters. The federal judiciary has exclusive jurisdiction over
bankruptcy cases, which are overseen by bankruptcy judges. The
court of appeals from each circuit hears appeals from the district
courts located within its boundaries, as well as appeals from
decisions of federal administrative agencies. Figure 1 illustrates
the rentable square feet distribution within the federal
judiciary.
Figure 1: Space Distribution within the Federal Judiciary in
Fiscal Year 2005
Note: The remaining space is composed of AOUSC, the Federal Public
Defender's Office, and other specialized federal courts.
The federal judiciary's rental obligations for federally owned and
leased space have steadily risen from $780 million to $990
million, or 27 percent from fiscal years 2000 through 2005, after
controlling for inflation using the Gross Domestic Product price
index. During this period, the judiciary had a net increase in the
amount of space it occupies, from 33.6 million to 39.8 million
rentable square feet, which is a 19 percent increase nationwide.
About two-thirds of the rent increase is attributable to this
increase in square footage. Among the components of rent, shell
(the building with basic infrastructure) grew proportionately with
the amount of net space added-about 19 percent. However, increases
in operating costs (driven by increases in energy costs) and
security costs grew disproportionately higher than the percentage
of net space added, thus contributing to the overall increase in
rent (see figure 2). The costs of tenant improvements (finishes
such as carpeting) increased at a slower rate than the amount of
net space added. AOUSC disagreed with our methods for attributing
costs to the judiciary's net growth in square footage. We continue
to believe that our methods are sound.
Figure 2: The Approximate Share of Judiciary Rent Increases
Attributable to the Net Growth in Square Footage and Other Factors
(Fiscal Years 2000 through 2005)
Square footage and total rent growth occurred in all years,
circuits, and courts (see figure 3). The judiciary's rent
increases have outpaced those of other agencies located in GSA
space, largely because the federal judiciary's square footage is
growing faster than that of other agencies. However, the rate of
operating cost growth was similar to that experienced by other
agencies.7
Background
3GAO, Federal Courthouses: Rent Increases Due to New Space and Growing
Energy and Security Costs Require Better Tracking and Management ,
GAO-06-613 (Washington, D.C.: June 22, 2006).
4H.R. Rep. No. 92-989, at 3 & 4 (1972).
5The other is the Department of Justice.
6According to GSA, it uses shell rent proceeds to finance the cost of
acquiring, repairing, altering, and operating buildings under the custody
and control of GSA.
Increases in Square Footage and Operating and Security Costs have Driven
Increases in the Judiciary's Rent Bill from Fiscal Years 2000 through 2005
7 Interagency comparisons regarding security costs are not possible since
the methods used to secure federal courthouses differ from other agencies.
Figure 3: Percentage Net Change in Square Footage and Major Rent Bill
Components, by Judicial Circuit, Fiscal Years 2000 through 2005
Note: The Federal and District of Columbia circuits were included in the
aggregate statistics but are not listed in the map.
Much of the judiciary's recent growth in net square footage was caused by
the construction of new courthouses. New courthouses represent about 8.8
million rentable square feet of new space that the judiciary has taken
occupancy of since fiscal year 1998 (a larger timeframe than our rent
trend data). According to judiciary officials, much of the judiciary's
growth and accompanying space-related needs have been the result of
elevating workloads, such as increases experienced in civil case filings.
The judiciary's courthouse construction effort may continue. Before it
imposed a moratorium in 2005, postponing new courthouse construction
projects for two years, the judiciary indicated that it had 35 additional
courthouse construction projects planned for fiscal years 2005 through
2009, estimated to cost billions of dollars. According to AOUSC, these
projects will be subject to the judiciary's new asset management planning
process that will consider renovation and other ways to limit new
construction. As of May 2006, no final decisions had been made.
We found that neither the judiciary nor GSA had routinely and
comprehensively analyzed the factors influencing the rent increases. This
information could help the judiciary better understand the reasons behind
its rent increases, make more informed space allocation decisions in the
future, and identify errors in GSA's billing. Furthermore, the lack of a
full understanding of the reasons for increases in the judiciary rent, in
our view, contributed to growing hostility between the judiciary and GSA.
Conversely, GSA's lack of full understanding of the reasons for the rent
increases left it unable to justify them to the judiciary and other
stakeholders, such as Congress.
Judiciary Faces a Number of Challenges but Could Take Actions to Better Manage
Its Future Rent Payments
The federal judiciary faces several challenges to managing its rent costs
including costly new construction requirements, a lack of incentives for
efficient space use, and a lack of space allocation criteria for appeals
and senior district judges. First, modern courthouses require structural
and architectural elements that make them among the most costly types of
federal space to construct. Chief among these elements are the three
separate circulation patterns for judges, prisoners, and the public that
the U.S. Marshals Service requires for security (see figure 4). These
construction costs necessitate rental rates under GSA's pricing policy
that are more expensive than the highest-quality office space in some
markets, including Denver, Colorado; Phoenix, Arizona; and Seattle,
Washington. This necessitates GSA using an approach for calculating rent
charges that is based on the costs to construct the building-known as
return on investment pricing-instead of an appraisal. The judiciary's
policy of providing one courtroom per district judge sets the number of
courtrooms needed in new federal courthouses and adds space requirements,
consequently increasing rent payments.
Figure 4: Sample Courtroom and Associated Support Spaces That Were Based
on Design Guide Criteria
The judiciary has initiated a rent validation effort, but it does not
address the lack of incentives for efficient space use at the circuit and
district levels. Because rent is paid centrally by AOUSC, circuits and
districts have few incentives to efficiently manage their space. An
example of the inefficiencies that may result is in the Eastern District
of Virginia, where the judiciary paid about $272,000 in 2005 to rent 4,600
square feet of office space for an appeals judge in McLean, Virginia, in
addition to paying for 4,300 square feet of chamber space originally
designated for that judge in the Albert V. Bryan U.S. Courthouse in nearby
Alexandria, Virginia. According to AOUSC, the judiciary has subsequently
pursued alternative uses for this chamber space. During site visits, we
observed multiple instances of unused or unassigned courtrooms, chambers,
and support spaces. Although planning and building for future needs may
limit alternative uses of space until it is occupied, some of this
underutilization is the result of outdated criteria, which stipulated the
existence of support areas, such as libraries, that in some cases are now
rarely used. In most cases, this was because judicial officers are
increasingly turning to electronic sources and research and keeping the
limited number of books they need in their chambers. However, since the
Design Guide provides space for law libraries, the districts we visited
all had them (see figure 5).
Figure 5: Law Library in the Evo A. Deconcini Courthouse in Tucson,
Arizona
Assigning space to appeals courts and senior district judges poses
challenges due to a lack of criteria, which can lead to variation and
inefficiencies and, thus, higher rent. Although the appeals court is
required by law to hold court in specific locations, the statute does not
indicate how much space it should occupy. For example, the judiciary plans
to increase the space the appeals courts occupy by taking over former
district courthouses in Richmond, Virginia, and Seattle, Washington, for
appeals court use, even though the appeals courts conduct court there once
a month or less. Circuit and district officials said that national
criteria for managing the space allocated to the appeals courts and senior
district judges could help limit the space assigned to them. In commenting
on the report associated with this testimony, AOUSC also identified
several challenges in addition to the ones we identified that we
subsequently incorporated into the report but did not evaluate. These
included statutorily designated places of holding court, the benefits to
GSA and the Federal Buildings Fund in backfilling courthouses with other
courts, and inconsistencies in the funding stream for courthouse
construction projects.
Recommendations
We made the following five recommendations to the judiciary in our report
associated with this testimony8 in order to help the federal judiciary
better understand and manage rent costs:
1. Work with GSA to track rent and square footage trend data on an
annual basis for the following factors:
o rent component (shell rent, operations, tenant
improvements, and other costs) and security (paid to
the Department of Homeland Security);
o judicial function (district, appeals, and
bankruptcy);
o rentable square footage; and
o geographic location (circuit and district levels).
This data will allow the judiciary to create a better national
understanding of the effect that local space management decisions have on
rent and to identify any mistakes in GSA data.
2. Work with the Judicial Conference of the United States to
improve the way it manages its space and associated rent costs.
A. Create incentives for districts/circuits to manage
space more efficiently. These incentives could take
several forms, such as a pilot project that that
charges rent to circuits and/or districts to
encourage more efficient space usage.
B. Revise the Design Guide to establish criteria for
the number of appeals courtrooms and chambers and the
space allocated for senior district judges and make
additional improvements to space allocation standards
related to technological advancements (e.g.,
libraries, court reporter space, and staff efficiency
due to technology) and decrease requirements where
appropriate.
8 GAO-06-613 .
Agency Comments
We provided a draft of the report that is being released today9 to GSA and
AOUSC for official review and comment and received written comments from
both. GSA agreed with the thrust of the report and concurred with our
recommendations, but expressed one concern. GSA felt it was more aware of
the reasons for rent increases than our draft portrayed. In commenting on
the report associated with this testimony, AOUSC said that it does not
believe tracking the data recommended by GAO would be useful-we disagree
with this assessment. AOUSC also said it is already implementing
incentives and updating its criteria, however the actions it identified do
not fully address our recommendations. For a more thorough discussion of
the agency comments, see the report associated with this testimony.10
Scope and Methodology
We conducted our work from May 2005 to May 2006 in accordance with
generally accepted government auditing standards. During our work, we
analyzed nationwide judiciary rent data generated from GSA's billing data,
reviewed laws and the regulation related to FBF and GSA's rent pricing
process and policies, and reviewed the U.S. Courts Design Guide and other
judiciary rent planning documents. Additionally, we conducted site visits
at federal courthouses in the following districts: Arizona, Eastern
Virginia, Maryland, Nebraska, Rhode Island, and Western Washington. We
selected Arizona, Nebraska, Rhode Island, and Western Washington because
they were in districts that experienced large overall rent increases from
fiscal years 2000 through 2005 and were geographically dispersed. We also
visited Maryland and Eastern Virginia court facilities while we were
designing this audit and included them in the review because they
contained a new courthouse, a renovated courthouse, and a courthouse that
was targeted for replacement. The findings from these courthouse visits
can not be generalized to the population of federal courthouses
nationwide. We interviewed district, magistrate, and bankruptcy judges;
officials from the AOUSC, which is the judiciary's administrative agency;
clerks, circuit executives, and other representatives from U.S. circuit
and district courts with authority over space and facilities; GSA
officials in headquarters and the regions; and other real property
management experts. We determined that the rent data were sufficiently
reliable for the purposes of our review.
9 GAO-06-613 .
10 GAO-06-613 .
Mr. Chairman and members of the Subcommittee, this concludes my prepared
statement, I would be pleased to respond to any questions that you or the
other Members of the Subcommittee may have.
GAO Contacts and Staff Acknowledgements
For further information about this testimony, please contact me at (202)
512-2834 or [email protected] . Keith Cunningham, Randy DeLeon, Bess
Eisenstadt, Brandon Haller, Grant Mallie, Susan Michal-Smith, Joshua
Ormond, Elizabeth Repko, David Sausville, and Gary Stofko made key
contributions to this statement.
(543176)
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
GAO's Mission
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO's Web site ( www.gao.gov ). Each weekday, GAO posts newly
released reports, testimony, and correspondence on its Web site. To have
GAO e-mail you a list of newly posted products every afternoon, go to
www.gao.gov and select "Subscribe to Updates."
Order by Mail or Phone
The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:
U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
D.C. 20548
To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202)
512-6061
To Report Fraud, Waste, and Abuse in Federal Programs
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail: [email protected]
Automated answering system: (800) 424-5454 or (202) 512-7470
Congressional Relations
Gloria Jarmon, Managing Director, [email protected] (202) 512-4400 U.S.
Government Accountability Office, 441 G Street NW, Room 7125 Washington,
D.C. 20548
Public Affairs
Paul Anderson, Managing Director, [email protected] (202) 512-4800 U.S.
Government Accountability Office, 441 G Street NW, Room 7149 Washington,
D.C. 20548
www.gao.gov/cgi-bin/getrpt?GAO-06-892T.
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact Mark Goldstein at (202) 512-2834 or
[email protected].
Highlights of GAO-06-892T, a testimony before the Subcommittee on Economic
Development, Public Buildings and Emergency Management, Committee on
Transportation and Infrastructure, House of Representatives
June 2006
FEDERAL COURTHOUSES
Rent Increases Due to New Space and Growing Energy and Security Costs
Require Better Tracking and Management
The judiciary pays over $900 million in rent annually to GSA for
court-related space, representing a growing proportion of the judiciary's
budget. The judiciary's rent payments are deposited into GSA's Federal
Buildings Fund (FBF), a revolving fund used to finance GSA's real property
services, including the construction and repair of federal facilities
under GSA control. In December 2004, the judiciary requested a $483
million dollar permanent, annual rent exemption which GSA denied, saying
that it undermined the intent of FBF and that GSA was unlikely to obtain
appropriations to replace lost FBF income. GAO reviewed (1) recent trends
in the judiciary's rent and space occupied and (2) challenges that the
judiciary faces in managing its rent costs.
What GAO Recommends
In an associated report, GAO recommended that the judiciary (1) track rent
trends and (2) improve its management of space and associated costs by
providing incentives for efficient use and updating its space allocation
criteria. AOUSC strongly disagreed with our report and said that it does
not believe tracking data recommended by GAO would be useful. We believe
otherwise. AOUSC also said it is already implementing incentives and
updating its criteria, however, the actions it identified do not fully
address our recommendations. GSA generally agreed with the report.
The federal judiciary's rental obligations to GSA for courthouses have
increased from $780 million to $990 million or 27 percent from fiscal
years 2000 through 2005, after controlling for inflation-primarily due to
a simultaneous net increase in space from 33.6 million to 39.8 million
rentable square feet, a 19 percent increase nationwide. Much of the net
increase in space was the result of new courthouses that the judiciary has
taken occupancy of since 2000. According to the Administrative Office of
the U.S. Courts (AOUSC), the judiciary's workload has grown substantially
and the number of court staff has doubled since 1985. Shell rent (the
building with basic infrastructure) increased proportionately with square
footage growth, but operational (utilities and general maintenance) and
security costs grew disproportionately higher than square footage due to
external factors, such as increasing energy costs and security
requirements. Neither GSA nor the judiciary had routinely and
comprehensively analyzed the factors causing rent increases, making it
more difficult for the judiciary to manage increases.
The Approximate Share of Judiciary Rent Increases Attributable to Growth
in the Net Square Footage and Other Factors (Fiscal Years 2000 through
2005)
The federal judiciary faces several challenges to managing its rental
obligations, including costly new construction requirements, a lack of
incentives for efficient space use, and a lack of space allocation
criteria for appeals and senior judges. First, building enhancements, such
as three separate circulation patterns for judges, prisoners, and the
public, and structural and architectural elements make courthouses among
the most expensive federal facilities to construct in GSA's inventory,
often leading to higher rent payments. Second, the judiciary has begun a
rent validation effort intended to monitor GSA rent charges, but it does
not address the lack of incentives for efficient space management at the
circuit and district levels. An example of the inefficiencies that may
result is in the Eastern District of Virginia, where the judiciary paid
about $272,000 in 2005 to rent space for an appeals judge in McLean,
Virginia, in addition to paying for space designated for that judge in a
nearby federal courthouse that the judiciary later used for alternative
purposes. Finally, the lack of criteria for assigning courtrooms for
appeals and senior judges can contribute to inefficiencies in the amount
of space provided, which can result in higher rent payments.
*** End of document. ***