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Immigrants in New Haven bear the brunt of the economic meltdown

The effect of economic meltdown in the US has started showing its actual effect and has led to funding cuts for Legal Aid agencies in New Haven – Connecticut. Legal Aid agencies in New Haven provide legal assistance for Immigrants, but due to the funding cut they may have to cut jobs and will thus be unable to provide assistance to all those who seek Legal Aid.

New Haven’s Legal Aid office is facing a sudden $1 million cut in it’s funding. This news is devastating for immigrants facing deportation as they could very well lose the assistance of a lawyer. The loss in funding is due to the economic downturn being faced by the US and the world at large. Throughout the state, most of the budget of Legal aid groups is funded by the real estate market, via a program that provides donations from interest accrued on escrow accounts tied to real estate deals and transactions. The program is known as IOLTA or Interest on Lawyers Trust Accounts.
Due to the meltdown and the tanking of the real estate market, the money available from the IOLTA program for statewide legal aid groups will drop by a staggering 50% or almost $10 million this year. The Bar Association of Connecticut, which manages the IOLTA program, convened an emergency meeting of the statewide legal aid groups last week and informed them of the situation. The NHLAA (NEW Haven Legal Aid Association) was informed that it would receive only $1.3 million from the program funds, which is half of what it received in 2008.

Since the NHLAA depends on almost half of its annual budget of $4 million, the sudden decrease in funding has forced NHLAA to cut its budget by a million dollars. The executive director of NHLAA  – Pat Kaplan – declared it as a crisis for Legal Aid group. The group has faced cutbacks previously too, in 1980 after Ronald Reagan was elected, and in 1994 after the Republicans achieved a majority in the US Congress. But unlike the previous cutbacks, which were due to politicians who were opposed to legal aid lawyers, the current cut in funding is due to the economic meltdown – according to Pat.

Pat also stated that there would be some job cuts as the group employs 20 attorneys, a social worker, and seven paralegals, but as there is a union, it is difficult to say who will be let off. The Legal aid agency helps almost 5000 people every year, people who otherwise cannot afford the fees and services of a lawyer. The agency also assists individuals with divorce and eviction cases, besides providing legal assistance in routine cases.
The result of inevitable layoffs is that fewer people will now be provided legal assistance. Some attorneys understand the situation and have agreed to pay cuts, while others have suggested a four day week or lesser working hours per week, with resultant lower pay. All these suggestions will have to be placed before the unions in the agency representing the lawyers and paraprofessionals and negotiations will have to be conducted for a solution. NHLAA hopes to come out of the crisis quickly and continue to provide legal aid and assistance as before.

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