Legal Aid Pennsylvania Experiences Financial Strain

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updated Mar 02, 2011

By Author - LawCrossing

02/06/09

Elizabeth Fritsch, co-executive director of Legal Aid of Southeastern Pennsylvania, observes that many calls to the Legal Aid are going unanswered due to the increase in the volume of calls. ""It has gotten to the point where people cannot get through."

The Legal Aid Bucks County division in Bristol and Doylestown, has initiated cost reduction measures to make up for a budget shortfall of $150,000 for this year, including a freeze on salaries and contributions to the staff retirement funds. Moreover, it will soon be operating on a four day workweek. Despite the ongoing cuts, officials are predicting they will still have to turn away clients due to lack of funding.

According to Fritsch, "People are losing their homes, losing their jobs, getting further and further into debt. All it takes is for something significant to happen, like losing one's medical insurance, and it doesn't take long for people to find themselves on the street. It's a terrible domino effect."

The private non-profit organization started to experience a financial shortfall last year when interest rates were cut, because half of the organization's funding comes from the Interest on Lawyers Trust Accounts (IOLTA). In Pennsylvania, the IOLTA sets up accounts and uses interest on the money that is held in trust for short periods of time by the lawyers before disbursing to their clients. The state's IOLTA collects the interest that is sent from the lawyers' accounts, and grants such monies to Legal Aid and similar organizations or programs.

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Due to the shortfall coming from IOLTA, Legal Aid must turn to fundraising to help pay their expenses. In Bucks County, Pennsylvania it has received some help from the Bucks County Bar Association. The association has started a 30 day campaign to assist Legal Aid.

Frank Sullivan, Attorney and Campaign Chairman, says that "there is a sense of urgency."

Legal Aid attorneys handle various legal proceedings including foreclosure, bankruptcy, family law, custody, termination of parental rights, social security and unemployment issues. Legal Aid is available for about 21% of the county's population who are eligible for help. In order to qualify, clients must meet certain criteria, including, an annual income of less than $27,000 for a family of four. Seniors citizens with an income of $11,000 or less annually are also eligible.

According to Fritsch, the financial shortfall and reduction in service is hurting the “most vulnerable members of society” and "this is about equal justice, about everyone having a key to the courthouse. Everyone, no matter how much money they have, is entitled to have their say."
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