Interest on Lawyer Account
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Mission
The Interest on Lawyer Account (IOLA) Fund was established in 1983 to finance civil indigent legal services. Revenues are derived from the interest earned on small trust accounts in which attorneys hold certain funds for their clients. Banks transfer the interest earned on these escrow accounts to the IOLA Fund to finance grants to not-for-profit, tax-exempt entities providing civil legal services to the indigent, elderly, disabled and others. Legislation enacted in 1988 made participation in IOLA mandatory for attorneys in private practice who hold nominal short term escrow accounts for clients. Regulations ensure that banking institutions pay a fair interest rate on IOLA escrow accounts; one that is not less than that paid on similar bank account types.
Organization and Staffing
The IOLA Fund is administered by a Board of Trustees who are appointed by the Governor for three-year terms. One member of the Board is appointed by the Governor to serve as Chair. The Board employs an Executive Director to serve as the Chief Administrative Officer to supervise the implementation of regulations, coordinate the review of applications, and supervise additional staff.
Budget Highlights
The FY 2024 Executive Budget recommends $54.2 million in appropriations ($2.2 million in State Operations, and $52.0 million in Aid to Localities) and a workforce of 9 FTEs. This is an increase of $7.0 million in Aid to Localities, largely due to increased revenues derived from the Fund, and no change to the staff size.
Program Highlights
IOLA funds are distributed through two-year grants in two program areas:
- Civil Legal Services (CLS) Grant. Awards are made to qualified organizations that provide civil legal services in multiple substantive areas free of charge to low-income persons in a particular geographic service area. Awards in the CLS program are for general operating support for organizations providing direct civil legal assistance to the poor.
- Administration of Justice (AOJ) Grant. Awards are made to providers of legal services to underserved groups and other groups with special needs. In addition to legal services, this program supports training events, program innovations, alternative dispute resolution programs, volunteer lawyer programs, and technology improvements that enhance legal service delivery.
| Category | Available FY 2023 |
Appropriations Recommended FY 2024 |
Change From FY 2023 |
Reappropriations Recommended FY 2024 |
|---|---|---|---|---|
| State Operations | 2,165,000 | 2,224,000 | 59,000 | 0 |
| Aid To Localities | 45,000,000 | 52,000,000 | 7,000,000 | 0 |
| Total | 47,165,000 | 54,224,000 | 7,059,000 | 0 |
| Program | FY 2023 Estimated FTEs 03/31/23 |
FY 2024 Estimated FTEs 03/31/24 |
FTE Change |
|---|---|---|---|
| New York Interest on Lawyer Account | |||
| Special Revenue Funds - Other | 9 | 9 | 0 |
| Total | 9 | 9 | 0 |
| Fund Type | Available FY 2023 |
Recommended FY 2024 |
Change |
|---|---|---|---|
| Special Revenue Funds - Other | 2,165,000 | 2,224,000 | 59,000 |
| Total | 2,165,000 | 2,224,000 | 59,000 |
| Program | Available FY 2023 |
Recommended FY 2024 |
Change |
|---|---|---|---|
| New York Interest on Lawyer Account | |||
| Special Revenue Funds - Other | 2,165,000 | 2,224,000 | 59,000 |
| Total | 2,165,000 | 2,224,000 | 59,000 |
| Program | Total | Personal Service | ||
|---|---|---|---|---|
| Amount | Change | Amount | Change | |
| New York Interest on Lawyer Account | 2,224,000 | 59,000 | 977,000 | 35,000 |
| Total | 2,224,000 | 59,000 | 977,000 | 35,000 |
| Program | Nonpersonal Service | |
|---|---|---|
| Amount | Change | |
| New York Interest on Lawyer Account | 1,247,000 | 24,000 |
| Total | 1,247,000 | 24,000 |
| Fund Type | Available FY 2023 |
Recommended FY 2024 |
Change |
|---|---|---|---|
| Special Revenue Funds - Other | 45,000,000 | 52,000,000 | 7,000,000 |
| Total | 45,000,000 | 52,000,000 | 7,000,000 |
| Program | Available FY 2023 |
Recommended FY 2024 |
Change |
|---|---|---|---|
| New York Interest on Lawyer Account | |||
| Special Revenue Funds - Other | 45,000,000 | 52,000,000 | 7,000,000 |
| Total | 45,000,000 | 52,000,000 | 7,000,000 |
Note: Most recent estimates as of 02/01/2023