Washington ( CNN ) -- Chief Justice John Roberts is warning leaders in the other two branches of the federal government that the pending `` fiscal cliff '' would `` inevitably result in the delay or denial of justice for the people the courts serve . '' In his annual year-end report on the federal judiciary , Roberts on Monday said the federal courts have already made significant cuts in their funding , representing only about two-tenths of 1 % of the entire federal budget . He said a prolonged reduction would be extremely hard to overcome . `` I therefore encourage the president and Congress to be especially attentive to the needs of the judicial branch and provide the resources necessary for its operations , '' said the chief justice . `` Those vital resource needs include the appointment of an adequate number of judges to keep current on pending cases . At the close of 2012 , 27 of the existing judicial vacancies are designated as presenting judicial emergencies . '' Roberts made his remarks in a 16-page summary of U.S. courts , part of his role as head of the entire federal judiciary . President Barack Obama said Monday an agreement to avert the `` fiscal cliff '' of automatic tax increases and spending cuts appeared to be `` within sight . '' Senate and House leaders were continuing to meet behind closed doors with White House officials , including Vice President Joe Biden , to reach at least a temporary tax and spending agreement . Roberts noted the judicial branch generally receives less attention when it comes to its spending , but an `` aggressive '' cost-containment strategy has been in place since 2004 . `` Our country faces new challenges , including the much publicized 'fiscal cliff ' and the longer-term problem of a truly extravagant and burgeoning national debt , '' Roberts said . `` No one seriously doubts that the country 's fiscal ledger has gone awry . The public properly looks to its elected officials to craft a solution . We in the judiciary stand outside the political arena , but we can continue to do our part to address the financial challenges within our sphere . '' The federal court system and its administrative offices operate on an annual budget of nearly $ 7 billion . That includes judges trying and hearing cases and appeals , both criminal and civil ; managing pretrial , defender , and probation offices ; and maintaining the bankruptcy court system . Most of the money -- about 62 % -- goes for personnel costs . Social media users vent over fiscal cliff . Roberts said the Supreme Court itself requested a 2.8 % decrease in its $ 75.55 million operations budget in fiscal year 2012 . He added a 3.7 % decrease is expected for fiscal year 2014 . There currently are 75 judicial vacancies , according to the Administrative Office of the U.S. Courts . Thirty-two nominations by the president are pending , awaiting Senate confirmation . There are 874 federal judges , including the nine-member Supreme Court , the district and appeals courts , and the nine-member Court of International Trade . Past year-end reports from the current chief justice have focused on budget cutbacks , frozen salaries , rising caseloads , and court security . These summaries have been an annual tradition for about four decades . They were begun by the late Chief Justice Warren Burger as a way to speak to the executive branch and Congress , the judiciary itself , and the public at large .
A prolonged reduction in funding would be hard to overcome , Chief Justice Roberts says . He notes 27 federal judicial vacancies are 'designated as presenting judicial emergencies ' 'Aggressive ' cost containment has been in place for federal courts since 2004 , he says .