Testimony of Cynthia Schrock Seeley
President
Women’s Bar Association of the State of New York 

Joint Hearing on IOLA and the Future of Legal Services in New York State 

Before the

New York Senate Standing Committee on Crime Victims, Crime and Correction
New York Senate and Assembly Committees on Judiciary
New York Senate Standing Committee on Codes
New York Senate Standing Committee Veterans and Military Affairs
New York Senate Standing Committee on Insurance

January 7, 2010 
Empire State Plaza, Meeting Room 6
Albany, New York 

Introduction

Good Afternoon.  My name is Cynthia Schrock Seeley and I am the President of the Women’s Bar Association of the State of New York (“WBASNY”).  I want to thank you, Senators Hassell-Thompson and Sampson, and Assemblywoman Weinstein, for sponsoring this hearing, as well as inviting me to testify on behalf of the Women's Bar Association. 

            Funding for Civil Legal Services is an issue that is a legislative priority for WBASNY.  Our organization consists of over 3,800 members from eighteen chapters across New York State, and is dedicated not only to promoting the advancement of the status of women in society and of women in the legal profession, but to the fair and equal administration of justice.  Our members include individuals from all levels of state and federal benches, as well as prominent attorneys practicing in all areas of the law, educators and government leaders.  Many of our members work for organizations that receive funding from New York State for civil legal services.  In fact, a survey of the major civil legal services programs across New York State shows that over 70% of the attorneys working at these organizations are women.  In addition, this same survey estimates that the majority of the clients they serve are women.

We are all acutely aware that New York State is in a fiscal crisis.  However, as you know, many New Yorkers are facing grave economic troubles of their own which require the assistance of legal counsel.  Without such assistance, these citizens must many times seek other forms of costly help from New York State.  It is on behalf of these New Yorkers, and the attorneys that represent them, that I ask you to respond to the immediate crisis resulting from the precipitous drop in the IOLA account and seriously consider providing a permanent funding source through the state budget for civil legal services that would supplement the IOLA fund.

The Current IOLA Crisis

As you know, the IOLA fund was created out of crisis in 1983, and it has seen other downturns since its inception.  The current crisis comes at a time that corresponds to a time of widespread economic hardship, when many more people are in need of basic civil legal services.  IOLA is funded in a way that is subject to economic forces – interest on small and short-term monies in attorney escrow accounts, and interest rates.  Right now, both are at an all-time low.  Unfortunately, the need for services does not ebb and flow in the same pattern.  In fact, it is quite the opposite.

            Although now - crisis mode - may not seem like the best time to examine how New York State funds civil legal services, unfortunately like many emergencies, it must be addressed now.  Let's not put duct tape on the wound.  We need to finally find a way to create a permanent funding stream so attorneys and providers are no longer spending precious time and resources pleading for funding at each and every turn of the budget process.  As Governor Paterson stated just yesterday, we can turn crisis into opportunity.  We can create a structure with balance, stability and financial reserves for this critical funding need.

            I would like to thank Chief Judge Lippman for including $15 million in the State Fiscal Year 2010-11 OCA budget to address the over 70% reduction in IOLA revenue this year.  While this funding cannot be relied upon until the budget is finalized, the inclusion of this funding is the first step to address the immediate crisis. 

            However, even with this short-term influx of funds, there will still be significant need for services that will be left unfunded.  Many New Yorkers will go unserved, and the structural problem inherent in these programs relying solely on IOLA funding as it stands will still exist.

Effect of Insufficient Funds

Because civil legal services funding is so important to our members, our mission, and the clients we serve, each year WBASNY writes to the legislature and to the Governor in support of additional and consistent funding.  We appreciate all of your efforts to ensure that this funding is available, especially this last year when so many more New Yorkers are in need, but additional funding should not be subject to budget negotiations each year.  This creates tension and chaos when the organizations that receive this funding do not know whether any of it will be included in the current year’s budget.  It is tragic for the clients who are left unserved, who often then must seek other State services and funds.  It is just as unfortunate for the attorneys and staff of these organizations who do not know, year after year, whether they are going to continue to have a job. 

            Lawyers and providers who are working in this field are doing so because they want to help those who are in need.  However, not knowing whether you’re going to have a job at the end of each year certainly takes its toll.  This situation can lead to job turnover, which further drains resources from the organizations already straining to meet the growing needs of the communities they serve.   Moreover, the number of attorneys providing valuable pro bono services can fluctuate widely.  During this economic downturn, many attorneys, including our members, have been laid off. Without the positions that allow for such service, they often lack resources to dedicate pro bono services to the needy. 

New York State Has a Responsibility to Support Civil Legal Services

WBASNY supports the creation of an additional State-level permanent funding source to supplement the IOLA Fund in order to better address the civil legal service needs of New Yorkers.  There must be a “home” at the state level that will be the voice for civil legal services and which will coordinate and monitor the funding process. We would be most willing to join in the development of a plan for a permanent funding stream for civil legal services which does not wax and wane with interest rates or changes in administrations, but is something on which these programs and the clients they serve, can depend on.

You have already heard testimony about some of the other states that have been able to stabilize their funding for civil legal services by supplementing IOLA funds with additional court fees or surcharges allocated specifically for their legal aid or civil legal services funds.  Millions of dollars have been raised by these minimal fees, so we cannot afford to skip further research into those possibilities. It is important that funding be consolidated within state government and that it is coordinated with the IOLA funding, but not be a replacement for it.  Given the frustration experienced by our government and other state governments across the country, there is no question that establishing one source of funding to best ensure stability for these programs is critical.

Conclusion

Thank you for this opportunity to come before you today.  I also thank and commend all the leaders who have come before you with testimony, and I am honored to be among those who have the experience, wisdom and passion to make ideas a reality.  On behalf of the Women's Bar Association of this State, I look forward to working with you and these leaders to determine how best to formulate a specific plan for this critical issue.  

IOLA and the Future of Legal Services in New York State
Testimony of Cynthia Schrock Seeley – WBASNY