TortDeform: The Civil Justice Defense Blog

Cyrus Dugger

Brennan Center Access to Justice Updates

From the Brennan Center for Justice:


1. LSC Receives $22 Million Increase for FY 2007; First Increase Since FY 2003
Low-income people throughout the United States will benefit from a recent funding increase for LSC. On February 15, 2007, President George W. Bush signed a continuing resolution, H.J. Res. 20, allocating $348.5 million for LSC in FY 2007. The approved funding level is $22 million over the FY 2006 appropriation and the first increase for LSC since FY 2003. Of the total amount, $330.7 million will be allocated to civil legal aid organizations throughout the country, $2.1 million will be allocated to the Technology Initiative Grant program, $12.7 million will be allocated to management and administration, and $2.9 million will be allocated to the LSC Office of Inspector General. The increase in funding will prove vital in ensuring that low-income people throughout the United States have increased access to justice. Julie Clark, Vice President for Strategic Alliances at the National Legal Aid and Defender Association, says, “After several years of stagnation, we are delighted with the increase in LSC funding. LSC was an anomaly in this Joint Resolution; most agencies were frozen at FY 2006 levels. The increase is a testament to the invaluable work of field programs and the strength of the legal aid community’s support on Capitol Hill. We hope it is a sign of continued growth in funding for legal services.” LSC Updates, Update on LSC’s FY 2007 Appropriation, Legal Services Corporation, Mar. 1, 2007; also based on original reporting by Brennan Center staff.

2. Indiana IOLTA Program Moves to Mandatory Participation and to Interest Rate Comparability With Other Bank Accounts; Fully Funds Grant Applications from State’s Pro Bono Districts
Indiana’s shift to universal participation in the state’s IOLTA program, combined with increasing interest rate comparability at banks, has led to a dramatic increase in funding for civil legal aid. For the first time in its history, the IOLTA program had enough money to fully fund the civil legal aid grant proposals it received from Indiana’s 14 pro bono districts. The increase in funds comes largely due to a 2004 vote by the Indiana State Bar Association’s House of Delegates to switch Indiana’s IOLTA system from an “opt-out” system to mandatory participation. Before the change to mandatory participation, approximately 60 percent of Indiana’s attorneys participated in IOLTA. Now, approximately 80 percent of Indiana’s attorneys are participating in the program. The 20 percent of attorneys who are not currently involved in the program are exempt from participating. Additionally, the Indiana Bar Foundation has encouraged banks to raise interest rates on IOLTA accounts to comparability with other bank accounts, producing significant overall increases in the amounts of revenue generated. These two steps — universal participation and interest rate increases — have enabled Indiana’s IOLTA program to contribute more than $1.1 million dollars to civil legal aid budgets, including for costs such as case intake and management software, and also to send a representative from each pro bono district to the Equal Justice Conference, held annually by the American Bar Association in partnership with the National Legal Aid & Defender Association. Additionally, recipients of the IOLTA revenue are looking at ways to use the new funding to increase their volunteer base and to expand their community education initiatives. Elizabeth Brockett, IOLTA Gains Boost Pro Bono; 2007 Grants Fully Fund State’s 14 Districts for First Time, The Indiana Lawyer, Feb. 21, 2007.


Posted at 5:28 PM, Mar 02, 2007 in Permalink | Comments (0) | TrackBack (0)