LAO’s financial position strengthens
Posted on: Wednesday, March 9 2011
Recent financial figures have Legal Aid Ontario (LAO) in a strong position to balance its budget by 2012/13.
This forecast comes as excellent news for LAO following the 2008 economic downturn which resulted in decreased revenues from the Law Foundation of Ontario (LFO) from $56.4 million to $4.8 million in 2009/10: a 91 per cent reduction.
For 2010/11, Legal Aid Ontario is expected to receive $18.6 million in revenue from the Law Foundation of Ontario, $13.8 million more than the previous year. Together with administrative savings generated by LAO’s modernization strategy, LAO’s deficit of $29.4 million will be reduced to $6.9 million by the end of this fiscal year, a reduction of 76.5 per cent.
How Law Foundation of Ontario funding is delivered to Legal Aid Ontario
The Law Foundation of Ontario receives interest from money lawyers and paralegals hold for their clients in trust accounts. By law, 75 per cent of all interest accumulated from these accounts is mandated for Legal Aid Ontario. The remaining 25 per cent is used to support organizations and programs that improve justice services for Ontarians.
Law Foundation of Ontario funding is dependent upon real estate activity and the Bank of Canada interest rates.