1. President's FY 2011 Budget Recommends Level Funding for LSC

Today President Obama released his budget plan. The President's overall budget plan includes a freeze on domestic discretionary spending, although some programs within the domestic discretionary budget will be cut and others will be increased.

As part of his detailed Fiscal Year (FY) 2011 budget plan, the President is seeking $435 million for the Legal Services Corporation (LSC). This is the same level of funding recommended in FY 2010 and only $15 million more than the amount appropriated for FY 2010. The President's request also includes, unchanged from the President's request in FY 2010, language regarding removal of the current restrictions on non-LSC funds, as well as the restrictions on attorneys' fees and participation in class action suits. The restriction on attorneys' fees was lifted in the FY 2010 appropriation enacted into law last December, while the restrictions on non-LSC funds and class actions remain.

Under the President's request for LSC, basic field funding would increase to $407 million, up from $394.4 million in FY 2010. The President is requesting $4 million for the Office of the Inspector General, down from $4.2 million in FY 2010. LSC Management and Grants Oversight would receive $20 million, up from $17 million in FY 2010. Funds for TIG grants would decrease from $3.4 million to $3 million, and $1 million would remain in the budget for loan repayment assistance.

On January 29, LSC submitted to Congress its FY 2011 budget request of $516.5 million. This funding level reflects the continuing need to provide adequate funding for the Legal Services Corporation and the overwhelming needs among legal aid programs trying to help low-income clients, particularly given the economic climate. The modest increases to LSC funding over the past several years and the President's FY 2011 meager increase pale in comparison to the funding level that LSC needs in order to fill the huge justice gap that LSC has identified in its recent study. NLADA will continue to work with Congress to underscore this need as it works to secure funding for fiscal year 2011.