NLS, like most legal services programs in the Commonwealth, receives a substantial portion of its income from IOLTA (Interest on Lawyers Trust Accounts) funds. These funds are generated from money held for a short time by attorneys, usually from real estate closings. With extremely little activity in the real estate market, these funds have been drastically reduced. NLS has lost $1 million this year - our budget has been reduced by 29%! This has resulted in staff layoffs and other cutbacks at the same time that demand for our services has reached an all time high. (With the downturn in the economy more families are eligible for our services and are in need of them to stave off homelessness, obtain medical coverage, obtain unemployment compensation, etc.)There is an Associated Press article, picked up by the Boston Herald, on the crises facing legal services attached.

See the New York Times Article, January 19, 2009 Interest Rate Drop Has Dire Results for Legal Aid.

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AP-legal-aid-in-need.pdf