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Interest on Lawyer Account

Agency Web Site: http://www.iola.org/Link to External Website

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. New 2007 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 2019 Executive Budget recommends $47 million All Funds, an increase of $58,000, due to rising Fringe Benefit costs. IOLA’s workforce is increased by 1 FTE to a total of 9 FTEs to accommodate increases in workload.

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.
ALL FUNDS
APPROPRIATIONS
(dollars)
Category Available
FY 2018
Appropriations
Recommended
FY 2019
Change From
FY 2018
Reappropriations
Recommended
FY 2019
State Operations 1,981,000 2,039,000 58,000 0
Aid To Localities 45,000,000 45,000,000 0 0
Total 46,981,000 47,039,000 58,000 0

ALL FUND TYPES
PROJECTED LEVELS OF EMPLOYMENT BY PROGRAM
FILLED ANNUAL SALARIED POSITIONS
Program FY 2018
Estimated FTEs
03/31/18
FY 2019
Estimated FTEs
03/31/19
FTE Change
New York Interest on Lawyer Account
Special Revenue Funds - Other 9 9 0
Total 9 9 0

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type Available
FY 2018
Recommended
FY 2019
Change
Special Revenue Funds - Other 1,981,000 2,039,000 58,000
Total 1,981,000 2,039,000 58,000

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program Available
FY 2018
Recommended
FY 2019
Change
New York Interest on Lawyer Account
Special Revenue Funds - Other 1,981,000 2,039,000 58,000
Total 1,981,000 2,039,000 58,000

STATE OPERATIONS - OTHER THAN GENERAL FUND
SUMMARY OF APPROPRIATIONS AND CHANGES
FY 2019 RECOMMENDED
(dollars)
Program Total Personal Service
Amount Change Amount Change
New York Interest on Lawyer Account 2,039,000 58,000 840,000 71,000
Total 2,039,000 58,000 840,000 71,000
STATE OPERATIONS - OTHER THAN GENERAL FUND
SUMMARY OF APPROPRIATIONS AND CHANGES
FY 2019 RECOMMENDED CONTINUED
(dollars)
Program Nonpersonal Service
Amount Change
New York Interest on Lawyer Account 1,199,000 (13,000)
Total 1,199,000 (13,000)

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type Available
FY 2018
Recommended
FY 2019
Change
Special Revenue Funds - Other 45,000,000 45,000,000 0
Total 45,000,000 45,000,000 0

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program Available
FY 2018
Recommended
FY 2019
Change
New York Interest on Lawyer Account
Special Revenue Funds - Other 45,000,000 45,000,000 0
Total 45,000,000 45,000,000 0

Note: Most recent estimates as of 01/16/2018

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