MF Global

After two years of budget cuts and further hits from the federal budget sequestration, officials at one of the nation's busiest bankruptcy courts say they are barely getting by on a bare-bones budget.The funding for the U.S. Bankruptcy Court for the Southern District of New York has been reduced by 37% over the last two years, to $5.06 million for 2013 from $8.06 million in 2011. The 2013 budget includes the 4% cut the court saw as a result of the across-the-board budget reductions that took effect in March, known as sequestration.And the court, which has handled some of the biggest, most high-profile Chapter 11 cases in recent years is expecting more budget cuts next year, which could mean further staff cuts."Being a chief during the sequestration and during the financial issues that anyone in the federal court is facing, it's very difficult," said Chief Judge Cecelia G. Morris."We're hurting," she added. "But we've been stepping down for a period of time."Cuts to federal spending bec...

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