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More Hard Times for the Legal Community

January 19, 2009

In addition to law firm layoffs, the legal services community and law schools are getting pinched by the economy. 

According to Above the Law, Temple University Beasley School of Law is cutting its budget by approximately 2% for the current academic year because Temple’s overall budget will be cut by 4%.  The post also indicates that private law schools are going to have to make even more drastic cuts, ultimately leading to less financial aid for students, which will make it harder for those from middle class and low income backgrounds to attend law school.

According to the New York Times, legal services agencies are being forced to cut their budgets as the interest rates drop and donors are not able to give as much money.  As requests for services have risen approximately 30%, the NYT article estimates that many agencies will have to cut 20% or more of their staff. 

Locally, I have heard that IOLTA donations to legal services organizations are down from what they were a  year ago.  Please remember our local legal services organizations when considering making donations this year.

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6 Comments leave one →
  1. January 22, 2009 11:15 am

    Definitely economic crisis effects legal community and its hard to cost cuttings .But it time to take right decisions and positive approach because bad time are not for all time. We definitely overcome that time of situation .

  2. IOLTA Is Theft permalink
    January 23, 2009 3:20 pm

    IOLTA is nothing more than the State stealing our client’s money to use for their own ends. If our clients wanted to donate their bank interest, then give them the choice.

  3. Claudia permalink
    February 3, 2009 2:43 pm

    This financial crisis will last more than one year. So hopefully the reaction will not be to retrench and use 1990’s strategies to deal with the decrease in funding. Hopefully management will use new strategies, like strategic cooperation with other legal non profits in overlapping areas, technology approaches to reduce time spent in routine tasks, and continued training and teaching skills to litigators. Our clients have changed in the past 10 years, and we can’t react by shutting our doors when their lives are in such upheaval.

  4. February 13, 2009 6:38 am

    Many people will no longer be able to afford to hire a lawyer.

    The US Labor Department reports that the economy lost 598,000 in one month. The unemployment rate average is 7.8% but many states report that it is as high as 10% in their states.

    More than ever before is the need to support nonprofit legal providers.

  5. February 13, 2009 9:27 pm

    Speaking of champion nonprofit lawyers, a big shout out for the Juvenile Law Center in Philadelphia for zealously advocating for the youth.

    http://www.nytimes.com/2009/02/13/us/13judge.html?pagewanted=1&_r=1&ref=us

  6. March 23, 2009 12:49 pm

    Really it is a dark face of economic crisis. It is really unfortunate when education temples have to cut their economic budget because it directly effects the students. We are definitely hopeful this hard time will pass very soon.

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