Oregon Legal Service Groups Face Budget Cuts
This is not the sexiest story in the news, but it impacts a lot of people, and for that reason is noteworthy. The Mail Tribune recently reported that many non-profit legal aid groups in Oregon face significant budget cuts due to a drop in contributions coming from the Oregon State Bar's Oregon Law Foundation.
The Oregon State Bar requires all lawyers to carry a client trust account. This is like an escrow account for lawyers. When we resolve a claim for a client, the settlement check is made out to the law firm and to the client. Each party signs the check, and it goes into the client trust account. Some or all of that money many have to sit in the account while everyone figures out disbursement of funds. Sometimes a client pays a lawyer a retainer, which must sit in the client trust account until the fee is "earned." The interest that accrues on these accounts goes to the Oregon Law Foundation, which uses the money to fund free legal clinics.
With the economy in its current state, interest rates are down, and the Oregon State Bar is predicting a 66% reduction in revenue aimed to help out non-profit legal aid groups. The State Bar has made access to justice a front burner issue, and despite the less than stellar reputation, many attorneys have volunteered, and provide many hours of "pro bono" representation each year. Keeping these important programs available when people are going to need them more than ever presents a challenge.
Helpful Links:
Legal Aid Services of Oregon Home Page
Oregon Courts Legal Aid Services Directory
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