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AGENCY TESTIMONY
Explanation of forfeiture funds and their limitations
0:22:24
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126 sec
Commissioner Strauber provides a comprehensive explanation of forfeiture funds, their sources, usage restrictions, and the limitations DOI faces in relying on these funds for operational needs.
- Forfeiture funds come from seized profits of criminal activity, shared with investigative agencies
- Strict DOJ guidelines govern the use of forfeiture funds, which must supplement, not supplant, DOI's budget
- The majority of DOI's forfeiture funds came from the 2011 CityTime case, with some recent additions
- DOI's use of forfeiture funds has saved the city $16.2 million between fiscal years 2022 and 2025
- The commissioner warns that forfeiture funds are not a sustainable long-term solution for funding basic operational needs
Jocelyn E. Strauber
0:22:24
I want to return for the moment to the topic of forfeiture funds and the role that they play in supporting our operations.
0:22:31
Both federal and state law provide for forfeiture by defendants of the profits of criminal activity to the government and for sharing of those funds with the investigative agencies that worked on the case.
0:22:44
Forfeiture funds must be used to support legitimate law enforcement activities.
0:22:49
The majority of our forfeiture funds come from federal prosecutions.
0:22:53
There are very strict DOJ guidelines on how forfeiture funds can be used and for what purposes.
0:22:59
And the guidelines require that forfeiture funds supplement, not supplant, DOI's budget.
0:23:05
This means that the city cannot reduce DOI's budget due to the availability of forfeiture funds.
0:23:11
We have used forfeiture funds to support our basic operational needs as I have just explained, but those funds are limited.
0:23:18
The majority of our forfeiture funds came from the twenty eleven city time case in which the defendants were ordered to forfeit very significant funds, a portion of which were shared with DOI.
0:23:30
DOI has continued to receive forfeiture funds from the CityTime case as recently as 2023 through the identification and sale of properties subject to forfeiture.
0:23:42
But DOI will not be able to fund our basic law enforcement needs with forfeiture indefinitely because we cannot expect to receive forfeiture in that amount again.
0:23:52
Our use of forfeiture funds between fiscal years twenty twenty two and 2025 to fund our operational needs has saved the city 16,200,000.
0:24:02
But in the future, the city must be prepared to fund those needs when our forfeiture funding runs out.
0:24:09
From 2014 through 2024, DOI spent an average of 2,500,000.0 forfeiture funds per year.
0:24:17
However, in fiscal year twenty five alone, that amount increased to 10,200,000.0, taking into account the use of forfeiture funds to support our operational needs in light of the city's budget cuts.