24,000 Fewer Clients May Receive Legal Services as Cuts in IOLTA and State Funding Hit New Jersey Legal Aid Programs, Prompting Major Layoffs
Monday, May 24, 2010
- Organization: Brennan Center
- Link: http://www.lsnj.org
Press Release, "Legal Services Announces Open Report on Human Consequences of Funding for Civil Legal Services, Further Staff Reductions," Legal Services of New Jersey, May 19, 2010
Legal Services of New Jersey announces: "Legal Services of New Jersey (LSNJ) today [May 19th] releases an Open Report to residents of New Jersey, detailing the deepening funding crisis for civil legal assistance to the poor, and announces sharp new reductions in staff and service capacity. Melville D. Miller, Jr., LSNJ president, observed: 'This report comes as one of our six regional programs - [LSC-funded] Central Jersey Legal Services, with offices in Middlesex, Union and Mercer counties - announces notices of layoff to 18 more staff, on top of the termination of 12 staff during March and April.' 'These cuts typify past and future staff reductions at each of our seven programs in the state. Statewide staffing has declined from 710 in 2007 to 610 currently, with at least 60 more staff slated for termination during the remainder of 2010. These staff cuts were caused by a reduction in IOLTA (Interest on Lawyers Trust Accounts) funding, formerly Legal Services' largest funding source, from $40 million in 2007 to $8 million currently, an 80% decline.' 'In addition, the Governor has proposed a 33%, $9.7 million reduction in State funding, now Legal Services' largest funding source in the wake of the IOLTA decline. . . .' 'The Legal Services system represented over 69,000 people in 2009, through its network of seven not-for-profit corporations with offices in all 21 counties. . . . We now project that, even without the proposed State funding cut, our calendar 2010 new clients served will be down to 55,000. The proposed State reduction would force us to eliminate services to another 10,000 clients annually.'"

.gif)
