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2006 Legislative Priorities
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The Legal Services Corporation (LSC), formed in 1974 with bipartisan Congressional support and the endorsement of the Nixon Administration, was created to ensure that all Americans have access to a lawyer and the justice system for civil legal issues regardless of their ability to pay. The LSC provides direct grants to independent local legal services programs chosen through a system of competition.
The Corporation currently funds 138 local programs serving every county, state and Congressional District in the United States and its territories. These local programs provide direct services to approximately one million constituents who struggle to get by on incomes below or near the poverty line as established by the Department of Health and Human Services. LSC clients include the working poor, veterans, family farmers and people with disabilities.
Many beneficiaries of LSC funding were formerly middle-class, who became poor because of age, disaster, unemployment, illness or the breakup of a family. Historically, more than two-thirds of legal aid clients have been women, most of them mothers with young children. Many victims of the September 11 terrorist attacks have received assistance from LSC-funded programs, including family members of victims in need of help with social security survivor benefits, landlord/tenant issues, child custody and guardianship issues, emergency public assistance, and many other matters.
LSC has been operating since 1980 without a renewed authorization. It continues to exist by virtue of its annual appropriation. Beginning in 1995, LSC became the target of a vocal minority in Congress vowing to eliminate the program. For FY 96, Congress cut LSC's budget from $400 million to $278 million and restricted the types of cases and clients legal services offices could take. Each year over the next five years, the House Appropriations Committee proposed slashing LSC's budget to $141 million. Five years in a row, funding was partially restored with strong bipartisan support during floor consideration of the Commerce, Justice, State (CJS) appropriations bill. Full funding was always restored and sometimes increased during subsequent negotiations with the Senate and the White House.
By FY 2001, LSC was funded at $329.3 million. In 2001, the new Bush Administration announced its strong support for the program, asking Congress to fund LSC at $329.3 million for FY 2002. For the first time in six years, the House Appropriations CJS Subcommittee fully funded LSC and Congress ultimately passed LSC's FY 2002 appropriation of $329.3 million without controversy or debate. LSC received a $9.5 million increase for FY 2003, bringing the Corporation's annual appropriation to $338.8 million. For FY 2004, LSC also received an appropriation of $338.8 million. This amount was reduced to $335.3 million after two government-wide recessions. In FY 2005, LSC was initially funded at $335.3 million before another two government-wide rescissions reduced LSC's funding to $330.8 million.
Today, while LSC enjoys bipartisan Congressional support and the support of the Bush Administration, securing adequate funding remains a challenge due to the escalating budget deficit. At the same time, the number of people living in poverty in the United States has increased by 5.74%. Today, more than 43 million Americans are eligible for federally funded legal assistance -- an all-time high. Every year, tens of thousands of eligible persons with major legal problems are turned away because of the local programs' lack of resources. Recent LSC Case Service Reporting statistics (CSRs) show a real decline in the number of clients served, assuming because of the continued downward trend in LSC funding.
FY 2005 Appropriations/Oversight Background
FY2006 Appropriations/Oversight Background
The Legal Services Corporation is one of the few government-funded entities allowed to submit its own budget proposal directly to Congress. On February 2, 2006, the bipartisan LSC Board of Directors submitted its FY 07 budget request and urged Congress to provide a significant funding increase for LSC to $411 million, $85 million more than the amount provided for FY 06.
In making this request, Board Chairman Frank Strickland stated, "LSC recognizes the fiscal constraints facing Congress. However, we hope Congress will conclude that turning away over 50 percent of eligible individuals who need legal assistance is an unacceptable situation."
The President on February 6, 2006 transmitted his FY 07 budget request to Congress. The President asked Congress to cut LSC's funding by $20 million from the FY 06 appropriation of $330 million, to $310 million for FY 07. Significantly, the President would cut funding for basic field grants by $24 million, while proposing increases within LSC’s budget for management/administration, Inspector General, and client self-help and technology. The President’s request, if enacted, would significantly and detrimentally impact legal aid funding available to the 50 states, the District of Columbia and the territories.
The ABA strongly opposes any further cuts to LSC’s funding, and supports the LSC Board’s request for the $85 million increase.
In June, the House Appropriations Subcommittee cut LSC’s budget to $313 million. Ranking Member David Obey’s (D-WI) amendment in the full Appropriations Committee to restore LSC’s funding by $25 million to $338 million failed on a generally party-line vote. Representative Obey again offered the amendment on the House floor and the amendment was adopted 237-185.
In July, the Senate Appropriations Subcommittee that funds LSC initially provided funding at FY 2006 level of $327 million. However, during full committee consideration, LSC’s funding was increased to $358 million as an amendment offered by Senators Tom Harkin (D-IA) and Pete Domenici (R-NM) was agreed to by the Subcommittee leadership. More than 54 Senators wrote the committee requesting at least $358 million, including a majority of the Appropriations committee members.
Congress did not complete the appropriations bills before recessing to campaign for the November election. Instead, most of the government, including the LSC, will be funded by a series of Continuing Resolutions. The exact procedure for completing the FY 2007 appropriations bill will be determined when Congress returns in mid-November.
LSC Board/Governance
The LSC is governed by an 11-person bipartisan Board of Directors, nominated by the President and confirmed by the Senate. The full Senate Committee on Health, Education, Labor and Pensions (HELP) is responsible for confirming nominees to this Board. The ABA pursuant to longstanding procedures conducts an evaluation of the nominees' qualifications and commitment to the program and submits its views to the Senate.
Helaine Barnett, formerly the Attorney-in Charge of civil legal services for the Legal Aid Society of New York City, has served as LSC's President since January 2004. The Board in September 2004 named Richard "Kirt" West as LSC's independent Inspector General.
Since February 2006, the U.S. Senate has confirmed two new members to the LSC Board of Directors: Sarah Singleton of New Mexico and Jonann E. Chiles of Arkansas. Currently five Republicans and five Democrats sit on the 11-member Board. The White House needs to nominate one additional nominee to replace Florentino Subia, who recently passed away. The ABA, pursuant to longstanding procedures, will conduct an evaluation of each nominee’s qualifications and commitment to the program and will submit its views to the Senate.
Other Developments
The Legal Services Corporation on October 17, 2005 released the results of its year-long study "Documenting the Justice Gap in America." Copies of the report, the overview and the LSC press release are attached to this email, and posted on the LSC website at "Documenting the Justice Gap in America."
The study documents that one in every two individuals who qualify for and actually seek assistance from LSC-funded programs are turned away because of a lack of resources. This 50 percent denial of service figure does not include the number of individuals who are eligible but do not seek assistance for whatever reason.
The study also verifies that at least 80 percent of the legal needs of the poor are not addressed. This figure highlights the much broader, unmet legal need that includes services provided by legal aid and private lawyers, whether pro bono or private attorneys charging full or reduced fees. This result was based on a review of the recent state studies, which support the often-quoted ABA study completed in 1994. Since the ABA completed its study in the early 90s, the unmet need has remained the same and even increased. Although private and state funding has increased, federal funding has declined, and the number of individuals eligible for assistance has increased as poverty has increased.
The ABA supports a strong, federally funded, community controlled program to provide legal aid for the poor. The ABA favors substantial private bar involvement in the delivery of legal services and actively encourages pro bono participation by individual attorneys, law firms, and corporate general counsels.
- The need for legal services for poor Americans has never been greater;
over 80% of the civil legal needs of the poor are not being met.
- LSC is a fundamentally conservative program, one that facilitates
the peaceful resolution of disputes and reinforces respect for the rule
of law. More than 90 percent of the cases are resolved without litigation.
- LSC was "reformed" by Congress in 1996. The Corporation is vigorously enforcing the restrictions passed by Congress and is working aggressively to ensure all programs that receive federal funds comply with all existing laws.
Legal Services Corporation "One Pager"
Legal Services Corporation Online Media Kit
ABA Letters and Testimony
ABA Standing Committee on Legal Aid and Indigent Defendants
ABA Grassroots Legislative Action Center
Other Links
U.S. House of Representatives
U.S. Senate
House Committee on Appropriations
Senate Committee on Appropriations
House Committee on the Judiciary
Senate Committee on Health, Education, Labor, and Pensions
Thomas: Legislative Information on the Internet
Legal Services Corporation
National Legal Aid and Defender Association
Staff Contact: Julie M. Strandlie, Legislative Counsel/Director, Grassroots
Operations
Last Updated: November 3, 2006