Legal Aid in Illinois

May 2012 Updated July 17, 2012

Selected Social and Economic Benefits

Jonah Kushner

Prepared by the Social IMPACT Research Center for The Chicago Bar Foundation and the Illinois Equal Justice Foundation

 Thisstudy,conductedbytheSocialIMPACTResearchCenter,wascommissionedbyTheChicagoBar Foundation,theIllinoisEqualJusticeFoundation,theIllinoisBarFoundation,theLawyersTrustFundof Illinois,andthePolkBros.Foundation. RepresentativesofTheChicagoBarFoundation,theIllinoisEqualJusticeFoundation,andthelegalaid providerswhosedatawereusedinthisstudywereallgenerouswiththeirtimeandinformation, allowingIMPACTtoassesstheeconomicbenefitsoflegalaidinIllinoisalongmultipledimensions. Primaryauthor:JonahKushner Evaluationteam:JonahKushner,AmyRynell,AmyTerpstra,LindyCarrow,JenniferClary,Suniya Farooqui,EllynDrathring,KristinScally. Suggestedcitation:Kushner,J.(2012,May).LegalAidinIllinois:SelectedSocialandEconomicBenefits. Chicago:SocialIMPACTResearchCenter.

Acknowledgements

Thisreportisavailableatwww.heartlandalliance.org/research

TheSocialIMPACTResearchCenter(IMPACT)investigatestodaysmostpressingsocialissuesandsolutionsto informandequipthoseworkingtowardajustglobalsociety.IMPACT,aprogramofthenonprofitHeartland AllianceforHumanNeeds&HumanRights,providesresearch,policyanalysis,consulting,technicalassistance, communications,andcoalitionbuildingtoprojectsinIllinois,theMidwest,andnationally.Visit www.heartlandalliance.org/researchtolearnmore. 33W.GrandAvenue,Suite500|Chicago,IL60654|312.870.4949|research@heartlandalliance.org Copyright2012bytheSocialIMPACTResearchCenteratHeartlandAlliance Allrightsreserved

Equalaccesstothejusticesystemisafundamentalprincipleof Americandemocracy.TheU.S.Constitutionguaranteesequal protectionofthelawsanddueprocessinthecourtstoall Americansnotjustthosewhocanaffordalawyer.By providinglegalcounseltothosewhocannotaffordit,legalaid helpsensurethatallAmericansreceiveequalprotectionand dueprocess,andthatthelawspassedbyCongressandstate andlocalgovernmentsareappliedequally.

ExecutiveSummary

AcrossIllinois,nonprofitlegalaidprovidersofferfreelegal advice,representation,andotherlegalservicestolowincome, disadvantagedIllinoisanswhohavecivillegalproblemsand cannotaffordcounsel.Theselegalaidprovidersaffordaccessto thejusticesystemforclientsfacingevictionandforeclosure, domesticviolence,terminationofvitalbenefits,andother threatstothehealthandsafetyofthemselvesandtheir families.Legalaidmaypreventclientsandtheirfamiliesfrom becominghomeless,protectclientsfromdomesticviolence, andensurethatclientsandtheirfamiliesreceivebenefitsthat helpthemmeetbasicneeds.Formanyclients,obtainingthese servicesmaymeanthedifferencebetweenhungerandfoodonthetable,enteringahomelessshelter andbeingstablyhoused,andabuseandphysicalsafety.

Whileacomplete inventoryofthe economicbenefitsfrom legalaidisbeyondthe scopeofthisstudy,the estimatesitpresents canhelpinform policymakersandother stakeholdersasthey makedecisionsabout thefutureoflegalaid.

Servicesprovidedbylegalaidorganizationsrangefromeducatingclientsabouttheirrightsand responsibilitiestoextendedlegalrepresentationtoresolvecomplexproblems.Lowincome, disadvantagedpeoplemaystruggletounderstandtheirlegalrightsandobligations.Byeducatingclients andhelpingthemresolvelegalproblemsbeforecourts,administrativebodies,andothersettings,legal aidprovidersmaypreventlegalproblemsfromescalating,levelingtheplayingfieldandenabling vulnerablepeopletoparticipatemorefullyinsociety. Theprimaryoutcomeslegalaidachievesareensuringthatlowincome,disadvantagedpeople understandtheirrights;havetheassistanceneededtofairlyandefficientlyresolvetheirlegalproblems; andfeeltheyaretreatedfairlyandequallyunderthelawsthatgoverntheirparticularsituations.Inthe courseofachievingtheseoutcomes,legalaidalsoprovidesclientsandotherIllinoisanswithtangible economicbenefits.Theseincludemonetaryawardsthathelplowincomeclientsmeettheirfinancial obligations;increaseddemandforgoodsandservices,householdincome,andemploymentfromfederal benefitscases;andcostsofharmavoidedfromhomelessnessanddomesticviolence. TheChicagoBarFoundation,theIllinoisEqualJusticeFoundation,theIllinoisBarFoundation,the LawyersTrustFundofIllinois,andthePolkBros.Foundationcommissionedthisstudytoinform policymakersandotherstakeholdersaboutthetangibleeconomicbenefitsoflegalaid.Thisstudy quantifiessomeofthebenefitstoclientsandotherIllinoisansfromcasesclosedbysevenlegalaid providersthatarepartofthelargernetworkof38legalaidprovidersfundedbyTheChicagoBar FoundationandtheLawyersTrustFund.Itusesdatafromcivillawcasesinwhichclientsresidedin Illinois.Theseincludecasesinwhichaprovidercommunicatedwithathirdparty,preparedlegal documents,orhelpedaclientrepresenthimselforherself;negotiatedasettlementwithathirdparty; 1

representedaclientinanadministrativeagencyprocessorcourtproceeding;andprovidedother servicesbeyondlegaladvice.Datafrom8,134caseswereusedinthestudy.Theaverageclienthelped byoneofthesecasesbelongedtoahouseholdofthreepeopleandreportedannualhouseholdincome of$14,075,meaningthathisorherhouseholdwaswellbelowthefederalpovertylevel.* Thestudyquantifiesfoureconomicbenefitsfromcasesclosedin2010bythesevenlegalaidproviders: Legalaidproviderswon$49.4millioninmonetaryawardsforclients.Examplesof monetaryawardsarechildsupportandalimony,publicbenefitslikeSocialSecurityand unemploymentinsurance,andrelieffromillegalchargesbyalandlordorpaymenttoa predatorylender.

Legalaidproviderswon$11.9millioninbenefitswhollyorpartiallypaidforbythefederal government.Itisestimatedthattheseawardswereassociatedwith$9.3millionindemand forgoodsandservices,$5.4millioninhouseholdincome,and172nonlegalaidjobsacross Illinois. Bypreventingorobtainingmoretimeinforeclosuresorevictions,obtaining,protecting,or increasingrentalsubsidies,andassistingclientswithotherhousingissues,legalaid providersavoided$1.9millionincoststohomelessshelters. Byobtainingprotectiveorders,divorces,childcustody,andlegalrecognitionfornoncitizens experiencingabuse,legalaidprovidersavoided$9.4millionincostsofdomesticviolenceto individuals.

Overall,eachdollarspentonlegalaidbygovernmentsandprivatedonorswasassociatedwith$1.80in economicbenefitsforlegalaidclientsorotherIllinoisans.Totaleconomicbenefitsfromcasesclosedin 2010inthefourareasconsideredbythisstudyexceededspendingonlegalaidby$32.1million.

TheeconomicbenefitsoflegalaidinIllinoisarelikelytobegreaterthanthoseestimatedinthisstudy. Thestudyusesdatafromonlysevenof38legalaidprovidersfundedbyTheChicagoBarFoundationand theLawyersTrustFund.Additionally,civillawcasesotherthanthoseinvolvingmonetaryawardsand federalbenefits,homelessness,anddomesticviolencemayhaveoutcomeswitheconomicbenefitsfor legalaidclientsandotherIllinoisans:byovercomingexpulsionofastudentfromschool,legalaidmay enablethestudenttoobtainahighschooldiploma,increasinghisorherlifetimeearnings;byrestoringa clientsdriverslicenseorrecoveringarepossessedvehicle,legalaidmayenabletheclienttoaccess employmentfarfromhome,meetinganemployersneedforlaborandcontributingtothelocal economy.Becausethisstudyestimateseconomicbenefitsoflegalaidinonlyfoureasytomonetize areas,itrepresentsanincompleteestimateoftheeconomicbenefitsoflegalaidinIllinois.Whilea completeinventoryoftheeconomicbenefitsfromlegalaidisbeyondthescopeofthisstudy,the estimatesitpresentscanhelpinformpolicymakersandotherstakeholdersastheymakedecisionsabout thefutureoflegalaid. Completedetailsregardingcasesandmethodsusedforestimatingeconomicbenefitsaredescribedin themethodologyreport,availablefromwww.heartlandalliance.org/research.

Householdsizewasreportedfor8,044clientsandhouseholdincomewasreportedfor6,245clients.Thefederalpovertylevelin2010was $18,310forafamilyofthree.

LegalAidProvidersandCasesIncludedintheStudy
Datafromthefollowinglegalaidproviderswereusedinthisstudy:

CabriniGreenLegalAid(www.cgla.net):CabriniGreenLegalAidprovidesintegrated legalandsocialservicestoChicagoresidentsinfamilylaw,housinglaw,criminalrecords, andcriminaldefense.*Itservesclientswithhouseholdincomesbelow150percentofthe federalpovertylevel. LandofLincolnLegalAssistanceFoundation(www.lollaf.org):LandofLincolnLegal AssistanceFoundationservesresidentsof65countiesincentralandsouthernIllinois.It handlescasesintheareasofhousing,family,consumer,health,publicbenefits,and education,andprovidesadditionalservicestoseniorcitizensandresidentsoflongterm carefacilitiesinsomeareas.Householdswithincomesbelow200percentofthefederal povertylevelarepotentiallyeligibleforservices. LawyersCommitteeforBetterHousing(http://lcbh.org):LawyersCommitteefor BetterHousingservesChicagoresidentsinhousinglaw.Itservesclientswithhousehold incomesbelow60percentofChicagosmedianincome.

ProvidersaregranteesoftheIllinoisEqualJusticeFoundationandwereabletoprovidebasicdataabout clientsandcases.Becausethesesevenprovidersarepartofthelargernetworkof38legalaidproviders fundedbyTheChicagoBarFoundationandtheLawyersTrustFund,theyrepresentasmallcrosssection ofalllegalaidproviders.Thesevenprovidershandledonethirdofallcaseshandledbylegalaid providersinthisnetworkin2010.1 EachprovideroffersfreelegalservicestolowincomeIllinoisresidents.Providersfacehighdemandfor theseservicesandlimitedresourcestomeetthisdemand.2Generally,theyprioritizecaseswiththe

*

PrairieStateLegalServices(www.pslegal.org):PrairieStateLegalServicesserves residentsof36countiesinnorthernandcentralIllinois.Ithandlescasesconcerningfamily law,housinglaw,benefits,andconsumerissues.Itservesclientswithhouseholdincomes below125percentofthefederalpovertylevelandthoseoverage60.

NationalImmigrantJusticeCenter(www.immigrantjustice.org):NationalImmigrant JusticeCenterhandlescasesconcerningprotectionsfornoncitizensfacingdomestic violence,sexualassault,andotherformsofphysicalormentalabuse.Itservesclientswith householdincomesbelow200percentofthefederalpovertylevel.

LAF(www.lafchicago.org):LAF,formerlytheLegalAssistanceFoundationofMetropolitan Chicago,isthelargestprovideroflegalservicesinCookCountytopeoplelivinginpoverty. LAFhandlescasesconcerningnoncriminalissueslikedomesticviolence,consumerfraud, andunfairevictions.LAFgenerallyservesclientswithhouseholdincomesbelow125 percentofthefederalpovertylevel,butinsomeinstancescanserveclientswithhousehold incomesupto150percentofthefederalpovertylevel.

LegalAidSocietyofMetropolitanFamilyServices(www.metrofamily.org):LegalAid SocietyservesresidentsofCookCounty.Ithandlescasesconcerningfamilylaw,housing law,consumerissues,andelderabuse.Itservesclientswithhouseholdincomesbelow125 percentofthefederalpovertylevel.

Criminallawcaseswerenotincludedinthisstudy.

potentialtoprotectclientsfromseriousriskstotheirhealthandsafetyandensurethatclientsareable tomeettheirbasichumanneeds. Thestudyusesdatafrom8,134casesclosedbytheprovidersin2010.Eachcaseinvolvedoneormoreof thefollowingareas: Monetaryawards:Monetaryawardsarepaymentstoaclientfromanotherpartyorrelief fromaclientsobligationtopayanotherparty.Examplesarechildsupportandalimony, publicbenefitsawards,andrelieffromillegalchargesbyalandlordorpaymenttoa predatorylender.

Homelessness:Casesinwhichalegalaidproviderhelpedclientsavoidforeclosureor eviction,maintain,obtain,orincreasearentalsubsidy,orobtainanotheroutcomethat enabledthemtoaccesssafeandhabitablehousingmayhavepreventedclientsandtheir familiesfromenteringahomelessshelter.

Federalbenefitawards:Federalbenefitawardsareasubsetofmonetaryawardsthatare whollyorpartiallypaidforusingfederalfunds.TheyincludeSocialSecurity,HousingChoice Vouchers/Section8rentalassistance,SNAP/FoodStamps,TANF,MedicareandMedicaid, veteransbenefits,andawardsfromIRStaxcases.

LegalaidprovidersacrossIllinoishandledover220,000casesin2010.3Consequently,casesusedinthis studyrepresentasmallcrosssectionofallcaseshandledbylegalaidproviders. Acasemayinvolvemorethanonearea;forexample,legalaidmayhelpaclientobtainadivorcethat protectedhimorherfromdomesticviolenceandobtainchildsupportpaymentsinasinglecase.The followingtableshowsthenumberofcasesincludedinthestudybycasetype.Itexcludesfederalbenefit awardscasesbecausetheseareasubsetofmonetaryawardscases.

Table1:Casesincludedinthestudybycasetype Casetype Monetaryawards Homelessness Domesticviolence Morethanonearea Total Numberofcases 2,033 1,642 2,845 1,614 8,134 Percentageofallcases 25.0% 20.2% 35.0% 19.8% 100.0%

Domesticviolence:Casesinwhichalegalaidproviderhelpedclientsexperiencing domesticviolenceobtainaprotectiveorder,divorce,childcustody,orlegalrecognitionfor noncitizensexperiencingabusemayhavepreventedclientsfromexperiencingdomestic violence.

Theaverageclienthelpedthroughoneofthesecasesbelongedtoahouseholdofthreepeopleand reportedannualhouseholdincomeof$14,075.*Thefederalpovertylevelforafamilyofthreewas $18,310in2010,meaningthathisorherhouseholdwaswellbelowthefederalpovertyline.

*

Householdsizewasreportedfor8,044clientsandhouseholdincomewasreportedfor6,242clients.

WhatisNotIncludedinthisStudy
Thisstudyusesdataon8,134caseswitheasytomonetizeoutcomeshandledbysevenlegalaid providersthatwereabletoprovidebasicdataabouttheirclientsandcases.Becauseitexcludes manyotherprovidersandcases,itrepresentsanincompleteinventoryoftheeconomicbenefitsfrom legalservicesinIllinois. In2010,therewere38legalaidprovidersfundedbyTheChicagoBarFoundationand theLawyersTrustFund.Thisstudyusesdatafromlessthanonequarterofallproviders. In2010,legalaidprovidersacrossIllinoishandledover220,000cases.Thisstudyuses datafromfewerthanfourpercentofthosecases.

Whileacompleteinventoryoftheeconomicbenefitsfromlegalaidisbeyondthescopeofthisstudy, theestimatesitpresentscanhelpinformpolicymakersandotherstakeholdersabouttheeconomic benefitsoflegalaid.

Thisstudyusescaseswithoutcomesthatarerelativelyeasytomonetize:casesincluding monetaryawardsforclients,casesincludingbenefitswhollyorpartiallypaidforbythe federalgovernment,andcaseswithoutcomesthatmayhaveavoidedcoststohomeless sheltersandindividualswhowouldhaveexperienceddomesticviolence.Manyother casetypesmayhaveoutcomeswitheconomicbenefits.

Casesclosedbylegalaidprovidersin2010included$49.4millioninmonetaryawardsforclients.Awards fromthesecasesincludedrecoveriesandavoidances: Recoveries:Recoveriesarepaymentstoaclient fromanotherparty.Examplesareawardsofchild supportandalimony,publicbenefitslikeSocial Securityandunemploymentinsurance,medical benefits,andpaymentformedicalexpensesofcrime victims.

MonetaryAwardsforLowIncomeClients

Thefollowingtableshowsawardsfromcasesclosedbylegalaidprovidersin2010byareaoflaw.
Table2:Monetaryawardsfromcasesclosedbylegalaidprovidersin2010byareaoflaw Areaoflaw Consumer Family Incomemaintenance Housing Health Employment Other Total Examples Bankruptcy,protectionfrompredatorylenders,protection fromharassmentbycreditors Childsupport,alimony,divisionofpropertyordebtfroma marriage SocialSecurity,FoodStamps,unemploymentinsurance, TANF,Veteransbenefits,stateandlocalbenefits Relieffromillegalchargesbyalandlord,obtaining, increasing,orpreventingterminationofarentalsubsidy EligibilityforMedicaid,Medicare,oranotherpublichealth insuranceprogram Recoveringunpaidwagesorovertimepay,resolving federaltaxclaims Obtainingcompensationformedicalexpensesandlost wagesofcrimevictims Numberof cases 472 1,051 1,086 725 134 50 128 3,646

Avoidances:Avoidancesarerelieffromaclients obligationtopayanotherparty.Examplesarerelief fromwagegarnishment,illegalchargesbyalandlord, andmortgagepaymentstoapredatorylender.

Casesclosedbyselected legalaidprovidersin 2010included$49.4 millioninmonetary awards.

Totalawards $14,852,356 $10,444,230 $9,784,688 $9,366,364 $1,969,005 $601,235 $2,429,611 $49,447,490

Inadditiontowinningpaymentsorrelieffrommonetary obligationforlowincomeclients,legalaidstimulatestheIllinois economybytransferringincomefromoutofstatetoindividuals whoarelikelytospendthisincomeinIllinois.Manycases involvebenefitswhollyorpartiallypaidfromfederalfunds.The shareofthesebenefitspaidfromfederalfundsrepresents purchasingpowerthatconsumersinIllinoiswouldnot otherwisereceive,andthispurchasingpowercontributesto economicactivityinIllinois.* Casesclosedbylegalaidprovidersin2010won$11.9millionin benefitswhollyorpartiallypaidforbythefederalgovernment.It isestimatedthatlegalaidclientsspent$9.9millionofthese benefitsongoodspurchasedintheretailtrade,housing,and medicalcaresectors.Thefederalgovernmentcontributed$9.1 milliontothisamount.Itisestimatedthatthiscontributionwas associatedwiththefollowingeconomicactivityacrossIllinois: $9.3millionindemandforgoodsandservices $5.4millioninhouseholdincome

EconomicStimulusfromFederalBenefitsAwards

172nonlegalaidjobs Spendingofbenefitsinonesectoroftheeconomystimulatesactivityinothersectors.Whenaclient spendsfederalbenefitsongoodsorservicesinIllinois,thebusinessfromwhichheorshemakesa purchasemustreplenishitsstockofmaterialsorbuyservicesfromotherbusinesstosupporttheinitial purchase.ThebusinessmaymakesomesupportingpurchaseswithinIllinois,stimulatingeconomic activity.Itmaymakeotherpurchasesoutofstate,resultinginleakageofeconomicactivityfrom Illinois.ThesupportingbusinessesinIllinois,inturn,makepurchasesfromotherbusinesses,with leakageoccurringateverystep.Thesumofeconomicactivityateachstepaftertheinitialpurchase reflectsthetotaleconomicactivityassociatedwiththeinitialpurchase. Lowincomeindividualsandfamilieshaveahigherpropensitytospendincomeongoodsandservices(as opposedtosavingorinvesting),andtospendincomelocallythanthosewithhigherincomes.4Studiesof theEarnedIncomeTaxCreditandfederalstimuluspaymentsfindthatlowincomehouseholdsspend approximately70percentofthesepaymentsimmediatelyafterreceivingthem.5Toestimateeconomic stimulusassociatedwithcasesinvolvingfederalbenefits,itisassumedthatclientsspent70percentof awardsfromSocialSecurity,TANF,veteransbenefits,andfederaltaxcasesinIllinois.
*

Spendingofawards fromfederalbenefits casesclosedbyselected legalaidprovidersin 2010wasassociated with$9.3millionin demandforgoodsand services,$5.4millionin householdincome,and 172nonlegalaidjobs.

Bycontrast,casesthatobtainpaymentsfromonepartytoanothercannotbesaidtostimulatetheIllinoiseconomywhenbothpartiesarein state:intheabsenceofthecase,thelosingpartymightspendtheamountofthepaymentinIllinois.Forexample,considerahypotheticalcase inwhichaclientwona$100childsupportpaymentfromaformerspouseinIllinois:withthecase,theclientmightspendthepaymentin Illinois;withoutthecase,theformerspousemightspendtheamountofmoneyheorshewouldhavepaidtotheclientinIllinois.Withor withoutlegalservices,$100wouldhavebeenspentinIllinois,sothecasecannotbesaidtohavecontributedtoeconomicactivityinstate. Thisexcludesinitialincreaseddemandof$9.1millioninspendingonretailgoods,housing,andmedicalcarethatstimulatedsubsequent demand.Dollarspaidbythefederalgovernmentthatconstituteinitialdemandareacomponentoftotalmonetaryawardsforclients; consequently,initialincreasedoutputisnotconsideredeconomicstimulusinordertoavoiddoublecounting.

TheU.S.DepartmentofCommercecreateseconomicmultiplierstoestimatedemandforgoodsand services,householdincome,andemploymentstimulatedbyincreasedspendinginagivenindustrial sector.Theretailtradesectorencompassesmanybusinessesatwhichclientsmighthavespentawards fromSocialSecurity,TANF,veteransbenefits,andfederaltaxcases;theseincludegeneralmerchandise stores,gasstations,clothingstores,andhealthandpersonalcarestores.6Accordingly,theeconomic multiplierfortheretailtradesectorisappliedtothefederalshareofawardsspentinIllinois. OtherbenefitswhollyorpartiallypaidforbythefederalgovernmentincludeSNAP/FoodStamps, HousingChoiceVouchers/Section8rentalassistance,Medicaid,andMedicare.Clientsmustusethese benefitstoobtainfood,rentalhousing,andmedicalcare(asopposedtosavingorinvestingthemas theycouldotherbenefits).Accordingly,economicmultipliersfortheretailtrade,realestate,and ambulatoryhealthcareservicessectorsareappliedtothefederalshareoftheseawards. Table3showsawardsbybenefittype,estimatedamountspentbyclients,andfederalshareofamount spent.Economicmultiplierswereappliedtothefederalshareoftheestimatedamountthatclients spent.
Table3:Monetaryawardsfromfederalbenefitscasesclosedbylegalaidprovidersin2010by benefittype Benefit SocialSecurity TANF Awardsfromfederaltaxcases Veterans'benefits SNAP Section8 Medicare Medicaid Total Totaldollars $6,271,698 $258,236 $29,418 $10,329 $1,591,993 $2,194,504 $14,268 $1,504,655 $11,875,101 Dollarsspentby clients $4,390,188 $180,765 $20,593 $7,230 $1,591,993 $2,194,504 $14,268 $1,504,655 $9,904,197 Dollarsspentby clientsthatare federal $4,390,188 $93,636 $20,593 $7,230 $1,591,993 $2,194,504 $14,268 $754,886 $9,067,298

Applyingtheseeconomicmultipliers,itwasestimatedthatthe$9.1millionfederalshareofawardswas associatedwith$9.3millionindemand,$5.4millioninhouseholdincome,and172nonlegalaidjobs acrossIllinois.

AvoidedCostofHarm:HomelessShelter
Foreclosure:Byhelpingaclientmodifythe conditionsofahomeloanorobtainotherassistance, legalaidmaypreventtheclientandhisorherfamily fromlosingpossessionoftheirhomeandenteringa homelessshelter.

Theoutcomesofcaseshandledbylegalaidmaypreventfamiliesfromenteringhomelessshelters:

Ofcasesclosedin2010,2,548werecasesinwhichtheproviderhelpedclientsavoidforeclosureor eviction,maintain,obtain,orincreasearentalsubsidy,orobtainanotheroutcomethatenabledthemto accesssafeandhabitablehousing.Thefollowingtableshowsthesecasesbyoutcometype.

Table4:Caseswithoutcomesthatmayhavepreventedclientsfromentering ahomelessshelterbyoutcometype Outcometype Avoidedorobtainedadditionaltimeineviction Avoidedorobtainedadditionaltimeinforeclosure Other Unknown Total
1 2

Othercases:Legalaidhelpsclientsobtainaccesstopublicorprivatehousing,prevent threatenedlockoutsorstopactuallockoutsbylandlords,obtainrepairstohousingor accommodationsforclientswithdisabilities,andenforceothertenantrights.Theseservices enableclientstoaccesssafeandhabitablehousingandmayhelpclientsandtheirfamilies avoidenteringahomelessshelter.

Rentalsubsidy:Bypreventingterminationofarentalsubsidy,obtaininganewsubsidy,or increasingasubsidyamount,legalaidmayenableaclientandhisorherfamilytocontinue payingrentfortheirhomeandavoidenteringahomelessshelter.

Eviction:Byhelpingaclientavoideviction,legalaid maypreventtheclientandhisorherfamilyfrom losingpossessionofahometheyrentandenteringa homelessshelter.Legalaidmayalsoobtainmoretime foraclienttomoveinaneviction,enablingtheclient andhisorherfamilytolocateandmoveintoanewhomeandavoidenteringahomeless shelter.

Casesclosedbyselected legalaidprovidersin 2010avoided$1.9 millionincoststo homelesssheltersin Illinois.

Numberof cases 1,246

1

Percentageof cases 48.9% 4.9% 10.9% 30.2% 5.0% 100.0%

126 279 770 127 2,548

Maintained,obtained,orincreasedarentalsubsidy
2

Includesforeclosurecasesthatpreventedevictionoftenantsfromaforecloseduponlandlord.

Includescasesfromaproviderthathandlesonlyhousingcases.Theproviderwasabletoidentifycasesthat mayhavepreventedhomelessnessbutwasunabletoprovideoutcometypes.

Basedonpriorresearch,itwasassumedthatoneineveryfivecasespreventedafamilyfromentering shelter,thateachshelteredfamilycostsahomelessshelter$1,505permonth,andthateachfamily staysshelteredfor2.5months.Giventheseassumptions,casesclosedbylegalaidprovidersin2010 avoided$1.9millionincoststohomelesssheltersinIllinois. 9

AvoidedCostofHarm:DomesticViolence
Protectiveorders:Byhelpingaclientobtaina protectiveorder,legalaidmaypreventanabuser fromcontacting,harassing,andcommittingactsof violenceagainstaclient.Inaprotectiveorder,an abuserisusuallymandatedbyacourttohaveno contactwithanotherperson.Theabusermayface civilorcriminalchargesifheorshedisobeysthe order.7

Theoutcomesofcaseshandledbylegalaidmayprotectclientsfromdomesticviolence:

Divorce:Byhelpingaclientobtainadivorce,legalaid mayenabletheclientgaincontroloffinancial resources(suchasabankaccountorcreditcard)from anabusivespouse.Thismaygivetheclientmeansto moveawayfromthespouseandexitanabusivemarriage.

Casesclosedbyselected legalaidprovidersin 2010avoided$9.4 millionincostsof domesticviolenceto clientsinIllinois.

Ofcasesclosedin2010,5,109werecasesinwhichprovidershelpedclientsobtainaprotectiveorder, divorce,childcustody,legalstatusandeligibilitytoworkintheUnitedStates,orrelatedprotections.The followingtableshowsthesecasesbyoutcometype.

Table5:Casesthatmayhavepreventeddomesticviolencebyoutcometype Outcometype Obtainedaprotectiveorder Obtaineddivorce,legalseparation,orannulment Obtained,maintained,ormodifiedchildcustody ObtainednoncitizenlegalstatusandeligibilitytoworkintheUnitedStates Other Total Numberof cases 1,322 1,911 1,063 219 594 5,109 Percentageof cases 25.9% 37.4% 20.8% 4.3% 11.6% 100.0%

Legalrecognitionfornoncitizens:Legalaidhelpsnoncitizenswhoexperiencedomestic violence,sexualassault,andotherformsofphysicalormentalabuseobtainlegalstatusand eligibilitytoworkintheUnitedStates.Thismayenablethemtoobtainindependencefrom theirabusersandprotectionfromfurtherabuseunderUnitedStateslaw.

Childcustody:Byhelpingaclientobtaincustodyofhisorherchildren,legalaidmay enabletheclienttomoveawayfromhisorherabuser.Withoutchildcustody,theclientmay beunabletomoveawayfromtheabuserwhileensuringthechildrenssafety,forcingthe clienttoremainwiththeabuserandsubjectinghimorhertofurtherabuse.

Basedonpriorresearch,itwasassumedthatevery100casesprevented11.1incidentsofdomestic violenceperyearandthatdomesticviolencecostsindividuals$16,599perincident.Giventhese assumptions,casesclosedbylegalaidin2010avoided$9.4millionincostsofdomesticviolenceto clientsinIllinois.

10

EconomicBenefitsExceedSpending
Eachdollarspentonselectedlegalaidproviderswasassociatedwith$1.80ineconomicbenefitsfor legalaidclientsorotherIllinoisans. Casesclosedbylegalaidprovidersin2010wereassociatedwith$70.1millionin economicbenefits,including$49.4millioninmonetaryawardsforclients,$9.3millionin demandforgoodsandservicesacrossIllinois,$1.9millionincostsavoidedtohomeless shelters,and$9.4millionincostsofdomesticviolenceavoidedtoindividuals. In2010,theUnitedStatesgovernment,othergovernments,andprivatedonorsspent $38.0milliontosupportlegalaidproviders. Totaleconomicbenefitsinthefourareasconsideredbythisstudyexceededspendingon legalaidprovidersby$32.1million.

Somebenefitsincludedinthiscomparisonaccruedtolegalaidclients:Monetaryawardssuchaschild supportpaymentsorrecoveryofunpaidwageswerebenefitstolegalaidclientsbutlossesforother parties.Costsofdomesticviolenceavoidedwerebenefitstolegalaidclientswhomighthave experienceddomesticviolencewithouthelpfromlegalaid.Bycontrast,demandforgoodsand servicesandcostsavoidedtohomelesssheltersaccruedtoIllinoisansotherthanlegalaidclients. Thiscomparisonreflectseconomicbenefitsfromcaseshandledbythesevenlegalaidproviders includedinthisstudyandspendingonthoseproviders.Itincludesonlycaseswitheconomicbenefits inthefourareasconsideredbythisstudy.Asnotedabove,civillawcasesinotherareasmayhave outcomeswitheconomicbenefitsforclientsandotherIllinoisans.Whilethiscomparison demonstratesthattheeconomicbenefitsofselectedlegalaidprogramsexceedspendingonthose programs,itislikelytounderstatetheratioofeconomicbenefitstospending.

11

Thissectionsummarizesthemethodologyusedtoselectcasesforinclusioninthestudy,determine monetaryawardsbyareaoflaw,estimateeconomicstimulusfromfederalbenefitscases,andestimate costsavoidedbycasesthatmayhavepreventedfamiliesfromenteringahomelessshelterand individualsfromexperiencingdomesticviolence.Completedetailsareavailableinthemethodology report,availablefromwww.heartlandalliance.org/research.

Methodology

ProvidersandCasesIncluded
Datafromsevenlegalaidproviderswereusedinthisstudy.Providerswereselectedfromgranteesof theIllinoisEqualJusticeFoundation,anonprofitorganizationthatdistributesfundingfromtheStateof Illinoistononprofitlegalaidprograms.Providersselectedwerethoseabletoprovidebasicdataabout clientsandcases,includingoutcomecodesdescribingthesubjectmatterandoutcomeofeachcaseand monetaryawardsassociatedwitheachcase. Dataon8,134caseswereusedinthestudy.Tobeincluded,acasemusthavebeenclosedin2010and theclientmusthaveresidedinIllinois.Additionally,theprovidermusthaverenderedalevelofservice beyondprovidinglegaladvice,suchaspreparinglegaldocumentsorcommunicatingwithathirdparty, negotiatingasettlement,orrepresentingaclientinacourtproceedingoradministrativeagencyaction. Casesinwhichaproviderprovidedonlylegaladvice,referredaclienttoanotheragency,rejectedthe case,withdrewfromthecase,orlostcontactwithclientswereexcludedfromthestudy.

MonetaryAwardsforLowIncomeClients
Dataonawardstowhichclientswereentitledaccordingtocourtdecisions,settlements,andother officialsourceswereusedtoreporttotalmonetaryawardsandmonetaryawardsbyareaoflaw.Legal problemcodesdefinedbytheLegalServicesCorporation,anonprofitorganizationthatadministers federalfundingforlegalservices,wereusedtocategorizeawardsintooneof10broadareasoflaw.

EconomicStimulusfromFederalBenefits
Monetaryawardsfromcasesinvolvingbenefitswhollyorpartiallypaidforusingfederalfundsand economicmultiplierscreatedbytheU.S.DepartmentofCommerce,BureauofEconomicAnalysiswere usedtoestimateeconomicstimulusfromcasesinvolvingfederalbenefits. First,monetaryawardsfromfederalbenefitscaseswererecordedandtheamountthatclientsspentin Illinoiswasestimated.AwardsamountswererecordedforSocialSecurity,HousingChoice Vouchers/Section8rentalassistance,SNAP/FoodStamps,MedicareandMedicaid,Temporary AssistancetoNeedyFamilies(TANF),veteransbenefits,andIRStaxcases.Awardsfromhalfofall evictioncasesthatpreventedevictionfromprivatehousingofclientswithSection8rentalsubsidies werealsocounted.Thesecaseswererandomlyselectedandtheirawardsrecordedtoreflectthefact thatsomeevictioncaseseffectivelypreserveSection8rentalsubsidiesforclients.Itwasassumedthat clientsspent70percentofawardsfromSocialSecurity,TANF,veteransbenefitsandIRStaxcases. Additionally,itwasassumedthat100percentofawardsfromFoodStamps,Section8rentalassistance, andMedicareandMedicaidcaseswereusedbyclientstoobtainfood,rentalhousing,andmedicalcare frombusinessesinIllinois. Next,theamountofawardspaidforusingfederalfundswasdetermined.Thefederalgovernmentfunds SocialSecurity,Section8rentalassistance,FoodStamps,Medicare,andveteransbenefits.Accordingly, 12

itwasassumedthat100percentofSocialSecurity,Section8,FoodStamps,Medicare,andveterans benefitsawardswerepaidforbyfederalfunds.AwardsfromIRStaxcaseswerealsoconsideredfully paidforbyfederalfunds.ThefederalgovernmentfundsapproximatelyhalfofTANFandMedicaid benefits,withstatespayingtheotherhalf.Accordingly,itwasassumedthatapproximatelyhalfofTANF andMedicaidawardswerepaidforbyfederalfunds. Finally,economicmultiplierswereappliedtofederalfundstoestimatedemand,income,and employmentassociatedwithfederalbenefitscases.Economicmultipliersrepresenttherelationship betweendemandinonesectoroftheeconomyanddemand,householdearnings,andemployment acrosstheeconomy.TheBureauofEconomicAnalysiscreatesmultipliersforspecificgeographiesand forindustrialsectorswithingeographies.MultipliersforthefollowingindustrialsectorsinIllinoiswere appliedtofederalfunds: MultipliersfortheretailtradesectorwereappliedtoSocialSecurity,TANF,veterans benefits,andIRStaxawards.Thissectorencompassesmanybusinessestablishmentsat whichclientsmightspendincomefromtheseawards.

MultipliersfortherealestatesectorwereappliedtoSection8rentalassistanceawards. Thissectorencompassesbusinessestablishmentsthatrentorleaserealestatetoothersor managerealestateforothers. MultipliersfortheambulatoryhealthcareservicessectorwereappliedtoMedicareand Medicaidawards.Thissectorencompassesofficesofphysiciansandotherhealth practitioners,homehealthcareservices,andoutpatientcareservices.

Threetypesofmultiplierswereappliedtofederalfundsspentineachsector:outputmultipliers representingtherelationshipbetweendemandinonesectoranddemandacrosstheeconomy;income multipliersrepresentingtherelationshipbetweenspendinginonesectorandearningsreceivedby householdsacrosstheeconomy;andemploymentmultipliersrepresentingtherelationshipbetween spendinginonesectorandemploymentacrossallsectors.

AvoidedCostsofHarm:HomelessShelter
Thenumberofcaseswithoutcomesthatmayhavepreventedclientsandtheirfamiliesfromentering homelessshelterswasusedtoestimatethecostofhomelessshelteravoidedbylegalaid.These includedcasesinwhichlegalaidpreventedorobtainedadditionaltimeinaneviction;preventedor obtainedadditionaltimeinaforeclosure;preventedterminationofahousingsubsidy,obtainedanew housingsubsidy,orobtainedanadjustmenttoahousingsubsidy;andotherrelevanthousingcases. Itisunlikelythatallclientsandtheirfamilieswouldhaveenteredhomelesssheltershadlegalaidnot resolvedthecasesintheirfavor:somemighthaveavoidedenteringsheltersbyobtainingnewrental housing,stayingwithfamilyorfriends,orfindingotherhousingarrangements.BasedondatafromNew YorkState,leadinghomelessnessresearchersestimatedthatoneofeveryfivefamiliesreceivingpublic assistanceandfacingevictionwouldentershelterintheabsenceofanintervention.8Accordingly,itwas assumedthatoneineveryfivecasespreventedonefamilyfromenteringshelter. Thecostofprovidingafamilywithemergencyshelterforonemonthwasusedtorepresentcostsof homelessshelteravoided.AstudysponsoredbytheU.S.DepartmentofHousingandUrban DevelopmentdeterminedtheaveragecostoffamilyemergencyshelterintheDistrictofColumbia, Houston,Kalamazoo,andUpstateSouthCarolina.9Oftheseareas,fairmarketrentinHoustonismost comparabletofairmarketrentinChicago,wheremostclientsinhousingcaseshandledbylegalaid 13

resided.Accordingly,thecostoffamilyemergencyshelterinHouston,$1,505(2010dollars)perfamily permonth,wasusedtoestimatecostsofshelteravoidedthroughlegalaid.Theaveragelengthofstayin interimshelterinChicagowas75days,or2.5months,in2010.10Accordingly,thislengthofstaywas usedtorepresentlengthofstaythatclientswouldhavehadiftheyhadenteredshelter. Thenumberofcaseswasmultipliedby0.20,theshareofcasesassumedtohavepreventedonefamily fromenteringshelter;by$1,505,thecostofshelterperfamilypermonth;andby2.5,theaverage lengthofstayininterimshelter,toestimatecostsofhomelessshelteravoided:

AvoidedCostsofHarm:DomesticViolence

Thenumberofcaseswithoutcomesthatmayhavepreventedclientsfromexperiencingdomestic violencewasusedtoestimatethecostofdomesticviolenceavoidedbylegalaid.Theseincludedcases inwhichlegalaidobtainedormodifiedaprotectiveorder;obtaineddivorce,legalseparation,or annulment;obtained,maintained,ormodifiedchildcustody;obtainedprotectionforanoncitizenunder theUVisa,ViolenceAgainstWomenAct,orSpecialImmigrantJuvenileprogram;andotherrelevant familylawcases. Itisunlikelythatallclientswouldhaveexperienceddomesticviolencehadlegalaidnotresolvedthe casesintheirfavor:somemighthaveprotectedthemselvesfromapotentialassailantormovedaway fromapotentiallyharmfullivingsituationhadtheircasesbeenunsuccessful.Astudyofwomenin Seattle,Washingtonwhohadexperienceddomesticviolencefoundthatagroupofwomenwho obtainedpermanentprotectiveordersexperienced11.1fewerincidentsofphysicalabuseper100 womenthanagroupwithnoprotectiveordersintheyearfollowingtheinitialincidentofdomestic violence.11Accordingly,itwasassumedthatevery100casesprevented11.1incidentsofdomestic violence. Thecostofdomesticviolencetoindividualswhoexperienceitwasusedtorepresentcostsofdomestic violenceavoided.AstudybytheU.S.InstituteofJusticeestimatesthatspousalabusecosts$16,599 (2010dollars)perincident,includingthecostofmedicalandmentalhealthcare,lostproductivity, propertydamage,andintangiblelossessuchaspain,suffering,andreducedqualityoflife.12Accordingly, thiscostwasusedtoestimatecostsofdomesticviolenceavoidedthroughlegalaid. Thenumberofcaseswasmultipliedby11.1incidentsofdomesticviolencepreventedper100casesand by$16,599toestimatecostsofdomesticviolenceavoided:

2,548X0.20X$1,505X2.5=$1.9million

ComparingEconomicBenefitstoSpending

Economicbenefitswerecomparedtorevenuereceivedbythesevenlegalaidprovidersfromallpublic andprivatesourcesinfiscalyear2010.Economicbenefitsusedinthecomparisonincluded$49.4million inmonetaryawards,$9.3millionindemandforgoodsandservices,$1.9millionincostsavoidedto homelessshelters,and$9.4millionincostsofdomesticviolenceavoidedtoindividuals.Household incomewasnotusedbecauseitispartofdemandforgoodsandservices:someincreaseddemandfor goodsandservicesisrealizedasincomebyhouseholdsaslegalaidclientsspendfederalbenefits awards.RevenuedatawereprovidedbytheIllinoisLawyersTrustFund.Revenuereceivedwasfroma 14

5,109X(11.1100)X$16,599=$9.4million

varietyofsources,includingthefederalgovernment,stategovernment,otherpublicfundingsources, foundations,corporations,andthelegalcommunity. Economicbenefitsweredividedbyrevenuereceivedtocalculatetheratioofbenefitstospendingon legalaid,ornumberofdollarsineconomicbenefitsassociatedwithonedollarofspending:

$70.1million$38.0million=1.8

15

References
1 2

SocialIMPACTResearchCentersanalysisof2010casedataprovidedbyTheChicagoBarFoundationandtheIllinoisEqualJusticeFoundation. SeeforexampleRobParalandAssociatesandTheChicagoBarFoundation.(2010November).LegalaidinCookCounty:Areportonbasic trendsinneed,service,andfunding.Chicago:Author.Retrievedfrom http://www.robparal.com/downloads/Legal%20Aid%20in%20Cook%20County%20CBF%20%20Nov%202010.pdf 3 SocialIMPACTResearchCentersanalysisof2010casedataprovidedbyTheChicagoBarFoundationandtheIllinoisEqualJusticeFoundation. 4 P.Orszag&J.Stigliz.(2001November).Budgetcutsversustaxincreasesatthestatelevel:isonemorecounterproductivethantheother duringarecession?Washington,DC:CenterforBudgetandPolicyPriorities. 5 EITCrecipientsspent70percentoftheirEITCchecks.Lowincomehouseholdsspent76percentoftheir2001incometaxrebatesand71.5 percentoftheir2008economicstimuluspayments.R.Edwards.(2003September).MacroeconomicimplicationsoftheEarnedIncomeTax Credit.Retrievedfromhttp://www.demog.berkeley.edu/~redwards/Papers/edwardseitc.pdf;D.Johnson,J.Parker,&N.Souleles.(2006 December).Householdexpenditureandtheincometaxrebatesof2001.AmericanEconomicReview,Volume96,15891610;J.Parker,N. Soueles,D.Johnson,&R.McClelland.(2009December).Consumerspendingandtheeconomicstimuluspaymentsof2008.Retrievedfrom http://finance.wharton.upenn.edu/~souleles/research/papers/ESP2008_v7b_results.pdf 6 U.S.DepartmentofLabor,BureauofLaborStatistics.RetailTrade:NAICS4445.Retrievedfromhttp://www.bls.gov/iag/tgs/iag4445.htm 7 Benitez,C.,McNiel,D.,&Binder,R.(2010).Doprotectionordersprotect?TheJournaloftheAmericanAcademyofPsychiatryandLaw38:376 85. 8 Shinn,M.&Baumohl,J.(1999).Rethinkingthepreventionofhomelessness.InFosburg,L.&Dennis,D.(Eds.),Practicallessons:The1998 NationalSymposiumonHomelessnessResearch.Washington,DC:U.S.DepartmentofHousingandUrbanDevelopmentandU.S.Departmentof HealthandHumanServices.RetrievedfromU.S.DepartmentofHealthandHumanServiceswebsite: http://aspe.hhs.gov/progsys/homeless/symposium/toc.htm 9 Spellman,B.,Khadduri,J.,Sokol,B.,&Leopold,J.(2010).Costsassociatedwithfirsttimehomelessnessforfamiliesandindividuals. Washington,DC:U.S.DepartmentofHousingandUrbanDevelopment.RetrievedfromU.S.DepartmentofHousingandUrbanDevelopment website:http://www.huduser.org/publications/pdf/Costs_Homeless.pdfCostswerereportedin2006dollarsandinflatedbytheCPIUto reflect2010dollars. 10 Pfeiffer,J.(personalcommunication,April11,2012) 11 Holt,V.,Kernic,M.,Lumley,T.,Wolf,M.,&Rivara,F.(2002).Civilprotectionordersandriskofsubsequentpolicereportedviolence.Journal oftheAmericanMedicalAssociation288:58994. 12 Miller,T.,Cohen,M.,&Wiersma,B.(1996).Victimcostsandconsequences:Anewlook.RetrievedfromNationalCriminalJusticeReference Servicewebsite:https://www.ncjrs.gov/pdffiles/victcost.pdfCostswerereportedin1993dollarsandinflatedbytheCPIUtoreflect2010 dollars.

16