Interest on Lawyer Account

Agency Web Site: https://www.iola.org/

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 2025 Executive Budget recommends $64.9 million in appropriations ($2.9 million in State Operations, and $62.0 million in Aid to Localities) and a workforce of 9 FTEs. This is an increase of $10 million in Aid to Localities, largely due to increased revenues derived from the Fund, and no change to the staff size. The State Operations increase aligns with IOLA’s Justice Infrastructure initiative, aimed at increasing coordination among civil legal service providers.

For more information on this agency's budget recommendations located in the Executive Budget Briefing Book, click on the following link:

Briefing Book – General Government (PDF)

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.

Note: Most recent estimates as of 01/16/2024