Amid other budget cuts, Pennsylvania governor maintains previous year’s civil legal aid funding

From the Pittsburgh Post-Gazette: “While Gov. Tom Corbett has proposed cutting Pennsylvania’s budget by 3 percent in order to close a $4.16 billion deficit, he has not proposed a big cut for legal services for the poor. But his budget proposed $47.2 million less in funding than the courts requested. . . .The court system is expecting to face some funding drop-offs next fiscal year because federal funds are slated to fall from $2.14 million this fiscal year to $1.42 million next year. In a budget where other state agencies and programs are facing deep cuts, Mr. Corbett’s proposals for legal services for the poor look relatively robust. He proposes to keep $5.05 million in legal services, funded through a Social Services Block Grant (SSBG) that involves federal funds targeted to urban or rural areas in economic distress, at the same level. He also proposes that funding for the Department of Public Welfare to contract with the Pennsylvania Legal Aid Network (PLAN) to provide low-income people legal assistance be held at $3.01 million, down from $3.04 million in this fiscal year.

“‘In welfare, my budget retains the core services to care for our needy,’ Mr. Corbett said in his budget address. ‘At the same time, it puts the brakes on a runaway train of spending. My administration is committed to caring for the eligible poor. This budget reflects that commitment.’ Alfred J. Azen, the executive director of the state IOLTA (Interest on Lawyers Trust Accounts) Board, which provides funding to legal services, said holding the state general funding for PLAN and the SSBG funding flat ‘demonstrates that he values the civil legal services for the poor.’ . . .

“Other funding shortfalls are appearing on the horizon for legal services. A temporary filing fee surcharge — which consists of $10.25 per filing to fund judicial operations, $1 per filing to fund civil legal services and $2.25 per filing to support district attorney salaries — is slated to expire Jan. 7, 2012, and also could affect funding for legal services, Mr. Azen said. Because the surcharge is supposed to sunset midway through the 2011-2012 fiscal year, only about $1.3 million would be generated for legal services, he said. Legal services in Pennsylvania may be affected because there are calls to roll back federal funding for legal services to 2008 levels.”

General Assembly passes filing-fee surcharge increase

A compromise was reached on SB 248 and HB 106 during the waning hours of the last day of the legislative session–and by a significant majority in both the Senate and the House, the legislature approved a bill to increase the surcharge on civil court filing fees to address the funding crisis caused by historically low interest rates on IOLTA.

Projections indicate that the bill as adopted, which contains a three-year sunset provision, would generate approximately $6.1 million annually to address the shortfall in IOLTA revenue and help fund civil legal aid to low-income Marylanders.

“Although short of our original goal, this is a tremendous success by any measure,” said Maryland Legal Services Corp. executive director Susan Erlichman. “This was a tough session and a hard-fought victory.”

Added Maryland Legal Aid executive director Wilhelm Joseph:  “Justice-loving members of the bar, bench and the public joined with like-minded legislators in a remarkable full-court press to prevent any diminution in resources to the growing ranks of those in need of civil legal assistance.” Maryland Legal Aid receives more than half of the funding distributed by MLSC.

Small fee, huge help

Today’s Washington Post urges the Maryland General Assembly to pass a court filing-fee surcharge increase to fund civil legal services, including Maryland Legal Aid. “These relatively small increases could bring in as much as $9 million per year for legal aid and could make a world of difference to struggling families throughout the state,” the editorial said. To read it, click here.

On Friday, the House Judiciary Committee passed its version of the filing-fee surcharge bill. A full House vote is expected tomorrow. The Senate voted overwhelming to support its bill earlier this month.

State senate passes filing-fee surcharge increase

Today the Maryland State Senate passed SB 248, a bill that would increase civil court filing fees to fund legal service programs. The hurdles remaining to pass the bill into law are the House of Delegates Judiciary Committee and a vote in the full House.  “We urge the House Judiciary Committee to take action identical to the Senate’s, “said Maryland Legal Aid executive director Wilhelm Joseph.