Legal Aid of NC to close offices, reduce staff and services, affecting thousands in NC
August 5, 2011 Media Release
 

(Raleigh, NC) – Legal Aid of North Carolina, the largest provider of legal services to poor and working families in the State, announced today that it would close three of its branch offices and significantly reduce staff and services around the State due to severe funding cuts. 
 
Cuts made this year to state and federal legislative appropriations amounted to annual reductions of more than $2M.  With such substantial cuts to its core funding, Legal Aid of NC (LANC) could not avoid the closings and the elimination of about thirty staff positions.  The LANC offices located in Smithfield, Boone and Henderson immediately will stop taking new cases and will close entirely by the end of September.  LANC offices in Rocky Mount, Winston-Salem and Sylva also are affected.
 
The closings will affect households in Johnston, Harnett, Sampson, Allegheny, Ashe, Avery, Mitchell, Watauga, Wilkes, Vance and Yancey Counties.  More than 100,000 households--including than 30,000 children--are eligible for the services of Legal Aid of NC in these counties.  The offices in Smithfield, Boone and Henderson annually have served about 2,000 households in these counties.  Clients in the affected areas will have to travel to other offices, find and pay a local attorney, or rely on getting help through Legal Aid's toll-free helpline (1-866-219-5262).
 
"At a time of tremendous financial stress on working families, the loss of these services and the economic opportunities they create is another setback to those trying to lift themselves out of poverty," said Celeste Harris, a Winston-Salem attorney and the chair of the LANC board of directors.  "We've been holding the line on hiring and salaries already for two years while trying to keep up with the increasing need during the economic downturn."   
 
As a nonprofit, Legal Aid of NC relies for its funding on a combination of grants, contributions and appropriations from over eighty different sources, including government, to support its statewide work.  Three of its biggest sources -- a state legislative appropriation, an appropriation from Congress and the NC IOLTA program -- have all reduced funding for legal services programs.  The NC General Assembly and Congress, of course, are dealing with deficits of their own, and legal services programs have suffered a budget fate similar to other government-funded programs that serve poor and working families.
 
The NC IOLTA program is administered by the NC State Bar and receives its funding from the interest lawyers earn on the client trust accounts they are required to maintain.  A large share of this interest generally comes from large commercial real estate transactions, a business that has precipitously declined in this economy over the last two years.  NC IOLTA funding has declined by over thirty percent during this time.
 
"After these recent legislative cuts, there was no place else for us to go," explained Executive Director George Hausen.  "Closing some offices and cutting services was the only option left to us."
 
Legal Aid of North Carolina is a non-profit organization with an attorney staff of about 150 lawyers who are experts in legal matters involving the basic needs of low- and moderate-income households.  These 150 lawyers serve the over 3.2 million people in North Carolina who are eligible for these services under the federal poverty guidelines.  These lawyer go to all 100 counties and assist more than 40,000 households each year by providing legal representation, advice and education to those with significant legal problems.  The primary focus of its work is on defending the economic and social safety net by preventing homelessness or displacement, preventing domestic violence, safeguarding household income, defending against consumer scams and assisting seniors and veterans. 
 
"We know private lawyers in these communities will step up and volunteer," said Tom Berkau, a lawyer from Smithfield and a member of the LANC board of directors.  "Legal Aid lawyers however expertly handle hundreds of these cases and provide services that our volunteers will not be able to replace."
 
Legal Aid of North Carolina (LANC) is a statewide, nonprofit law firm that provides free legal services in civil matters to eligible, low-income people in all 100 counties in North Carolina through its 24 geographically located offices in North Carolina.  For additional information about LANC, visit LANC's website, www.legalaidnc.org.
 

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CONTACTS:
George Hausen (Executive Director, LANC), Raleigh, NC,
919-856-2564
 
Celeste Harris (Chair, LANC Board of Directors), Winston-Salem, NC,
336-777-1411

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The materials contained on this website are for information and educational purposes only and do not constitute legal advice.  Also please note that Legal Aid of North Carolina does not provide legal assistance by E-mail. Contact your Legal Aid of North Carolina office or a private attorney if you need to speak to an attorney regarding your particular situation.
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Mission Statement

Legal Aid of North Carolina is a statewide, nonprofit law firm that provides free legal services in civil matters to low-income people in order to ensure equal access to justice and to remove legal barriers to economic opportunity.

 

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