Most Federal Judges Get Outside Income

The majority of America’s federal judges have six-figure investment portfolios and many make more money off the bench than on, according to a comprehensive study of their government financial reports.

The judges, whose current salaries range from $89,500 to $115,000 a year, are now pressing Congress for a 30% salary increase.

“I think judges are entitled to a pay raise,” said Robert McWilliams of the U.S. 10th Circuit Court in Colorado. “They are worth it. Judges’ salaries, rather than being geared to the income of the average taxpayer, should be geared to the average of practicing lawyers.”

An Associated Press survey of 935 financial disclosure reports found that few federal jurists depend solely on their salaries. All but 15 of the judges had outside income--with more than half the judges reporting extra earnings in a range from $16,624 to $39,500.

Most Recent Year

For its study, AP examined reports for 1987, the most recent year for which a complete set was available. Most material in these reports is listed within wide numerical ranges rather than in exact dollar amounts.

Like other Americans with personal assets, the judges receive investment income through interest, dividends, rent on real estate and capital gains on land or securities. Four hundred judges reported extra earned income--some through teaching law, speaking fees or book royalties, but mostly through pensions from earlier jobs or settlements from their former law firms.

Here are other details from the judicial disclosures:

--Only five judges reported no household income other than salaries.

--At least 555 judges, perhaps as many as 723, have investment assets worth more than $100,000 after their debts have been subtracted. The typical judge reported net investments worth between $140,000 and $350,000. These assets generally reflect family funds or substantial incomes before and after appointment to the bench.

--At least 62, and as many as 176, of the judges are millionaires. They include Gerhard A. Gesell, who presided over the trial of Oliver L. North and whose holdings include stock and a 358-acre Virginia farm. Sandra Day O’Connor appears to be the only millionaire on the Supreme Court.

--Many of the judges (at least 93 and perhaps as many as 258) have more money coming in from outside sources than they get from their government salaries.

Corporate Attorneys

Judicial leaders, right up to Chief Justice William H. Rehnquist, say that judges are underpaid, and their salaries indeed lag behind America’s top corporate attorneys.

Overall, the financial reports do not give a complete look at the judges’ wealth because they do not include their homes and holdings not held for investment purposes. Also, judges can value property at the purchase price, sometimes decades out of date.

Earlier this year, Congress balked at a 50% raise proposed for judges, Congress and some executives. Rehnquist then held a rare news conference to appeal for raises to avert what he called “the most serious threat to the future of the judiciary.”

President Bush responded by proposing 25% increases for the judges with some limits on outside income. The judges are asking for 30% with annual cost-of-living adjustments and no limits.