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News Release
Texas Access to Justice Commission & Foundation
Legal Aid Funding Shortfall
Creates Risk for
Low-Income Texans and the State
AUSTIN, Texas—The
Texas Access to
Justice Commission
and
Texas Access to
Justice Foundation
hosted a news conference today at the Texas State Capitol to emphasize the
ongoing funding crisis in the Texas legal aid system. At the conference,
Texas Supreme Court Justice Nathan L. Hecht, the Court’s liaison to access
to justice issues, announced a comprehensive legislative plan to address the
funding crisis. In addition, a new economic impact study by The Perryman
Group was announced.
Texas Legal Aid
Funding
The continued rise
in poverty, combined with a slow recovery of the national economy, has
vastly increased the number of low-income Texans in need of free civil legal
services. Currently, 5.7 million Texans qualify for legal aid for help with
issues such as benefits for veterans, health care for the elderly, domestic
violence and foreclosures.
Interest on Lawyers’
Trust Accounts (IOLTA) is a significant funding source for legal aid
services in Texas, but those funds have decreased significantly due to
historically low interest rates.
IOLTA revenue for legal aid has dramatically declined from $20 million in
2007 to a projected $4.4 million for 2012. This decline in funding harmfully
affects legal aid programs throughout the state.
“Helping struggling
Texans with civil legal needs not only improves their lives and their
families’ lives, it is a boost to the entire state as well,” Justice Hecht
said. “Ensuring that Texans have access to justice allows them to be
self-sufficient and ultimately lessens the need for taxpayer support.”
One legal aid lawyer
is available for approximately every 11,512 Texans who qualify. To be
eligible for legal aid, an individual must earn no more than $14,363 a year.
For a family of four, the household income cannot exceed $29,438.
Legislative Remedies
Proposed
Several bills are
expected to be filed this session that will help address the funding
shortfall. The House and Senate budget bills (HB 1 and SB 1) as introduced
include $13 million for legal aid in the Texas Supreme Court budget. The
Texas Supreme Court requested an exceptional item that restores $4.6 million
in general revenue back to the 2012-13 budget level of $17.5 million.
In addition, Senator
Robert Duncan and Representative Senfronia Thompson have filed companion
bills in the House and Senate (HB 1445 and SB 635) that would increase the
funds dedicated to legal aid for indigent Texans from civil penalties and
civil restitution recovered by the Attorney General. Senator John Carona is
co-author of SB 635 and Representatives Sarah Davis, John Davis and
Sylvester Turner are co-authors of HB 1445.
“The success of our civil justice system depends on the ability of all types
of citizens to access our courts," Sen. Duncan said. "Civil legal aid
provides significant services to veterans, women, children and the disabled
and that is why I am proud to sponsor SB 635."
Rep. Senfronia
Thompson noted, “Legal aid often means the difference between life and
death, living in a home or on the streets, being self-sufficient or needing
to rely on governmental agencies. HB 1445 is urgently needed to help address
this critical funding shortfall.”
“Providing access to
justice is a cornerstone of our democracy, and I am proud to play a
leadership role in this effort,” Rep. Sarah Davis said.
Findings from
Economic Impact Report by The Perryman Group
A study to determine
the economic impact of the legal aid delivery system in Texas was
commissioned by the Texas Access to Justice Foundation, and findings were
announced today. The study was conducted by Dr. Ray Perryman of The Perryman
Group.
The study examined
the economic impact of legal aid currently being provided as well as the
potential effect of expanding funding for legal aid. Currently, legal aid
services lead to a sizeable stimulus to the Texas economy. The estimated
gain in business activity equals an annual $722.4 million in spending,
$346.9 million in output (total value of goods and services produced) and
4,528 jobs.
For every dollar
spent in the state for indigent civil legal services, the overall annual
gains to the economy are estimated at $7.48 in total spending, $3.59 in
output (total value of goods and services produced) and $2.22 in personal
income. This activity generates about $47.5 million in yearly fiscal
revenues to state and local government entities.
There is a large
unmet need for legal aid, and increased funding (and, thus assistance) would
lead to further gains in business activity in addition to the other social
benefits of more equitable access.
A copy of the full
economic impact report from The Perryman Group is available at
www.teajf.org. # # #
The
Texas Access to Justice Commission
was created in 2001 by the Supreme Court of
Contact: Kimberly Schmitt
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