Kentucky Legal Aid Programs Face Fin'l Squeeze As Governor Puts Hatchet To State Funding; Federal, Private, IOLTA Funding Also Down

In Lexington, Kentucky, the Lexington Herald Leader reports:

• [T]he state typically provides $1.5 million in funding for four legal aid organizations in Kentucky [...].(1) But this fiscal year that was cut to $500,000 divided among the four agencies. Then last week, Gov. Steve Beshear proposed cutting that $500,000 to $250,000. The additional cuts to legal aid were part of a package of proposed cuts to make up for a projected $456.1 million shortfall in the state budget.(2)

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• Before the cuts, legal aid groups turned away many who needed help fighting foreclosure or dealing with other housing problems, and signing up for Medicaid and prescription drug benefits. [...] With the economy in tatters and more people facing foreclosure, more people are turning to legal aid groups to help save their homes.

For the story, see Legal aid faces major budget cuts.

(1) Kentucky Legal Aid, Legal Aid of the Bluegrass, the Legal Aid Society in Louisville and the Appalachian Research and Defense Fund.

(2) Reportedly, federal funding for the four programs has remained flat or slightly decreased. Private foundation giving is also down. The state's four legal aid groups also depend on interest payments on lawyers' trust accounts for funding. Interest rates are at historic lows, which means yet another drop in funding.