Legal Aid Faces Layoffs

by Paul Bass | October 29, 2008 3:26 PM | | Comments (22)

DSCN1847.JPGImmigrants facing deportation could lose access to a lawyer as New Haven’s legal aid office wrestles with a sudden $1 million cut.

That loss stems from the current economic meltdown. Legal aid groups throughout the state depend on the real estate market for much of their budgets, through a program that steers them donations from the interest on escrow accounts. The program is called IOLTA, for Interest On Lawyers’ Trust Accounts. The bulk of the program’s money comes from escrow accounts tied to real estate transactions.

Now that the real estate market has tanked, the amount of money available from the program to legal aid groups statewide is dropping some $10 million this coming year, a full 50 percent.

The Connecticut Bar Foundation, which administers the program, broke the bad news to the heads of eight statewide legal aid groups at an emergency meeting last week.

New Haven Legal Assistance Association (NHLAA) learned it will receive $1.3 million from IOLTA in 2009 — down from $2.6 million in 2008.

NHLAA depended on IOLTA money for more than half of its current $4 million budget. Suddenly the agency is faced with cutting close to $1 million from its overall budget.

“This is a crisis for us,” group’s executive director, Pat Kaplan (pictured), said Wednesday. The agency faced dramatic cutbacks twice before, after Ronald Reagan’s election in 1980 and after Republicans gained a majority in Congress in 1994.

Unlike those two times, this emergency has nothing to do with politicians opposed to legal aid lawyers, Kaplan noted. “This is strictly the economy.”

It’s too early to tell where most of the cuts will fall at the unionized agency, which currently employs 20 attorneys, seven paralegals and a social worker. The agency serves about 5,000 people a year who otherwise can’t afford lawyers. Besides helping individuals with divorce or eviction cases or other routine legal matters, the agency has also taken the lead on broader social challenges to the poor, like problems with the state’s health care insurance system for low-income family.

Layoffs now seem inevitable, with the result of fewer people being served. Some attorneys have already offered to take pay cuts, according to Kaplan. Other suggestions floated so far include switching people to four-day or 30 or 35-hour work weeks, with proportional pay cuts. All proposed suggestions will be negotiated with the agency’s two unions representing lawyers and paraprofessionals.

The first casualty was announced Wednesday morning: Renee Redman learned that in early 2009 her job will be eliminated.

Redman came to NHLAA earlier this year to represent immigrants facing deportation. Many immigrants detained by the feds and accused of being the country illegally lack lawyers and end up not knowing how to contest their cases in court.

“Having a lawyer at least allows a person to understand the system and understand if he has a chance of not being deported,” said Redman, a former state ACLU legal director who has practiced immigration law on and off since 1993.

“Immigration law is complicated. It changes a lot. A lot of people are not deportable [under the law] — but it takes a lawyer to figure that out.”

Redman said she’s confident of landing a new job next year, but hopes she can continue to representing detainees.

NHLAA will be able to continue a separate new immigration initiative thanks to a three-year, $150,000 grant it just received from the Community Foundation for Greater New Haven. The grant supports an effort to help immigrant families in the Naugatuck Valley navigate the special education system for their children.

A See Saw

The shock to the statewide legal aid system comes less than two years after an IOLTA bonanza.

A change in the IOLTA rules sent millions of new dollars to legal aid agencies in 2007. Some banks were skimping on the interest they were forwarding on IOLTA cases; they were paying less interest on those accounts than they did on other, similarly sized commercial accounts. Following at least one confrontation at a bank’s annual meeting and a legislative hearing in Hartford, state judges instituted a rule whereby the interest rate had to be comparable.

The extra money produced by the new rule enabled New Haven’s legal aid to hire five new attorneys, including creating Redman’s immigration position.

The money has suddenly dried up for two main reasons: The collapse of the real estate market, in which fewer sales were producing smaller interest-bearing trust accounts; and lowered federal interest rates, which lower interest rates at banks. (The Fed lowered its benchmark rate another half percent Wednesday.)

The Bar Foundation took in $20 million in IOLTA money to distribute to legal aid agencies in 2007, according to Executive Director Sandy Klebanoff. That number has suddenly shrunk to $8 million for 2008. It is projected to shrink to $4 million in 2009, she said — “if we’re lucky.” Because the Foundation had $12 million saved in a stabilization funds, it was able to allow legal-aid groups to keep their full 2008 allotments.

“I don’t know of any nonprofit sector that’s been hit as badly” as legal aid by the economic meltdown, Klebanoff said — at a time when hard times more poor people need legal help than before.

Pat Kaplan said her New Haven agency plans to highlight the IOLTA mess in its upcoming winter fund-appeal mailing. She also said the state’s legal aid groups plan to lobby the legislature to increase its support this coming year — an uphill campaign giving ongoing cuts to the rest of the state budget.







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Comments

Posted by: Taxpayer | October 29, 2008 4:22 PM

My apologies to the folks who came to the US illegally. I'm sorry we don't have enough money for your legal defense. I apologize that we spent too much on your housing, education, food, healthcare, utilities and cable TV.
We'll try better next time.

Posted by: Tim | October 29, 2008 5:48 PM

Taxpayer, couldnt agree more.

Posted by: KAMB | October 29, 2008 6:02 PM

You're right 'taxpayer." By the way, are we suppose to feel bad for this lady or for the illegal immigrants she represented. DOES ANYONE ELSE READ THIS AND THINK, WHAT THE HELL IS GOING ON IN THE CITY & COUNTRY?

I'm sick of working 70 hours a week and being taxed to death to barely make ends meet. Then I read about all these GOVERMENT FUNDED PROGRAMS (funded by yours truely) that arenothing more than FAILURE at the cost of me and you . . . taxpayers.

Posted by: walt bradley | October 29, 2008 7:02 PM

I have to correct you Taxpayer. Most of the people who have entered the u.s., and thus new haven in a "non-sactioned" manner actually do not subscribe to cable, but rather opt for satellite television because it offers more programming in spanish, portugese and cantonese / mandarin.
normally this wouldn't bother me, however public access funds are tied to subscribership, and in the last 7 years comcast new haven has lost about 14,000 subscribers to the evil disk that's ominously perched above the awnings in so many neighborhoods with a heavily non-english speaking population.

Posted by: Joe | October 29, 2008 7:58 PM

Yeah, I'd much prefer giving tax breaks and other welfare to mega-corporations and to war profiteers like Haliburton. "Illegal" immigrants and other disadvantaged people should fend for themselves. For instance, instead of food stamps send 'em to the Dumpsters.

Posted by: Hmm... | October 29, 2008 8:33 PM

Actually, taxpayer, tim, and kamb, no government funds are used in the representation of undocumented people by legal aid. So nothing any of you said about the topic makes any sense to me.

Posted by: Beansie's Mom | October 30, 2008 1:20 AM

FOLKS,

It's not just undocumented immigrants that suffer when there isn't funding for Legal Aid. We have a lot of poor and working poor in this country. Many have been here so long, so many generations, they can't tell you how their families came to this shore.

A solution could be to fund this service from those lawyers and marshalls making money serving foreclosure notices. Any one can suddenly lose a job and find themselves behind in rent, car payments or old student loans.

Do we want everybody out on the street. Those who can least afford to may the interest can charged the highest interest rates.

It's much easier to go have individuals then the shady LLCs that proliferate this city.

In these tough economic times we should be lending a helping hand where we can and think before we lob these stones or hurl insults.

Problem here is that the opening sentence doesn't address all the ways that Legal Aid services help people in this state.

Posted by: Eats shoots and leaves | October 30, 2008 9:09 AM

I hope that the Bar Association and the more well-heeled law firms that love to brag about their pro bono work will step up to the plate and help to re-fund Renee Redman's position at NHLA. Everyone who knows Renee knows that she is not only incredibly dedicated to serving Connecticut's immigrant communities (regardless of status) but also that she is very, very good at it. Being forced to cut her from the NHLA payroll would be a tremendous loss to not only immigrants in Connecticut but to anyone who gives a damn about people getting justice in this state.

Posted by: KAMB | October 30, 2008 9:24 AM

So HMM,
Where does the money come from to pay? . . . the ToothFairy!?

Posted by: John Blankston | October 30, 2008 10:15 AM

Kamb, the money comes from several sources, predominantly from Interest on Lawyer's Trust Accounts, as the article said.

Posted by: Kathy | October 30, 2008 10:22 AM

it appears some of you didn't even bother to read the entire article before posting stupid comments. The money, Kamb, comes from IOLTA accounts. Go back and read the article again, slowly this time and with your glasses on. I quote: "Legal aid groups throughout the state depend on the real estate market for much of their budgets, through a program that steers them donations from the interest on escrow accounts. The program is called IOLTA, for Interest On Lawyers' Trust Accounts. The bulk of the program's money comes from escrow accounts tied to real estate transactions." Legal Aid helps those who cannot afford a lawyer with matters like evictions, divorce, elder law, etc., NOT just immigration!

Posted by: Judy H. | October 30, 2008 11:21 AM

To Taxpayer, Tim, kamb and others who posted angry and sarcastic comments: Many of us are just one paycheck away from needing the important legal services that New Haven Legal Assistance Association has provided with care and dignity for over 40 years to the poor and working poor in our community. The funding cuts can be devastating to a program that helps people with housing crises; women facing domestic violence; children with special needs; individuals with employment issues; and, yes, immigrants who may be improperly treated by the government. New Haven Legal Assistance deserves our respect and enduring support.

Posted by: tim | October 30, 2008 11:57 AM

the palpable anger/ frustration evident from the comments printed above is misdirected. We are not talking about tax dollars here. Even if we were, we have a moral obligation to help the poor. Many of the "illegals" who sometimes benifit from the services which are the subjuct of the article work and....what-they pay taxes.

Posted by: tim | October 30, 2008 11:57 AM

the palpable anger/ frustration evident from the comments printed above is misdirected. We are not talking about tax dollars here. Even if we were, we have a moral obligation to help the poor. Many of the "illegals" who sometimes benifit from the services which are the subjuct of the article work and....what-they pay taxes.

Posted by: Pat | October 30, 2008 1:48 PM

We know legal aid helps the poor and working poor on a variety of issues. Why does this article focus on its help with illegal immigrants? The lead sentence is not a very good one.

Posted by: Bill | October 30, 2008 3:06 PM

Tax dollars are spent due to the legal aid society defending ILLEGALs. The court hearings require judges and lawyers representing ICE which costs taxpayer $$$$$$.

Posted by: Joe | October 30, 2008 3:08 PM

As the article noted, immigration law is not as simple as one might think and changes periodically. Without the help of legal aide lawyers many immigrants find themselves held in prison or deported even when that action itself is against the law. (Not only talking about illegal immigrants either.)

Illegal immigration is a result of poor policy and the failure of our policymakers. This country has years and perhaps decades of sharp contrasts between law "on the books" and law "of the land" (that is as enforced).

I liken it to the speed limit. Anyone would be flabbergasted to receive a ticket for driving 56 miles per hour. Why? Not because the law isn't clear, the signs clearly say 55 miles per hour is the maximum, but it has been years since traffic flow was anywhere near that pace. I don't blame immigrants for sneaking into this country anymore than I blame those who regularly break the law by driving faster than 55 miles per hour. In both cases there is a sharp difference between the policy on the books and the policy as enforced.

Until we have clear policy with enforcement to match, our anger is misdirected. Instead of being upset at immigrants, we should be upset with our lawmakers.

Posted by: Alan Felder | October 30, 2008 11:57 PM

More tax dollars going for illegals immigrants, The New Social Commdity. Born in the U.S.A.

Posted by: fearless | October 31, 2008 9:26 AM

joe, let them eat Dumpsters? maybe a little harsh here? better not find yourself needing help some day, cause chickens like you will come home to roost!

Posted by: Pat | October 31, 2008 10:21 AM

http://www.nhregister.com/articles/2008/10/31/news/a3-nhlegal.txt

Attached is a true professionally written article on what is happening to legal aid. that organization does so much more than defend folks in this country illegally who's rights may have been violated.

Posted by: liz | November 2, 2008 11:42 AM

Maybe legal defense of illegal immigrants isn't high on most people's list of justified expenses but in support of Pat's point, Legal Aid does far more than help immigrants in need...children, lower income families and many other disadvantaged populations rely on these organizations and unfortunately in hard economic times, these organizations are among the first on the chopping block. Even if you don't agree with all the work they do, it is important to remember the importance of their work as a whole, especially in a community like New Haven.

Posted by: marc schwartz | December 25, 2008 1:59 PM

To those who objected to Legal Services funds being spent on "illegal immigrants". Read the first sentence of the article carefully: "Immigrants facing deportation could lose access to a lawyer." Where in this sentence does it say "illegal immigrants"? Some poor immigrants are falsely accused or arrested and brought to court. Is there a problem with providing them with legal services? Or should the justice system deny them legal counsel because someone says they are illegal without ever having found them guilty in court of this offense? Anybody who likes a system that allows people to be declared "illegal" without a trial and then denies them the resources to defend themselves against that or other charges on the basis of that unfounded allegation has got to love Guantanamo.

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