Senators Scrutinize Legal Services Corporation Spending, Management

Press Release

SENATORS SCRUTINIZE LEGAL SERVICES CORPORATION SPENDING, MANAGEMENT

Senators Chuck Grassley and Pete Domenici are asking the Legal Services Corporation to account for its spending practices and management of resources as the legal aid corporation faces a possible budget shortfall.

Federal tax dollars provide about 99 percent of the Corporation's resources. A December 2007 report by the Government Accountability Office documented spending by the Legal Services Corporation on interest-free loans for employees of Corporation grantees, late-fee payments on overdue accounts, questionable contracts for computer services and lobbyist registration fees. The Office of the Inspector General also determined that the Corporation spent tax dollars on $14 cookies, limousine rides, premium travel and expensive hotels for board meetings.

"Bad management and abusive spending is jeopardizing the ability of the Legal Services Corporation to provide legal assistance to people in need," Grassley said. "Congress needs to hold the Corporation and its board of directors accountable on behalf of taxpayers, who provide most of the money to run the Legal Services Corporation, and for the fundamental right in our society to legal representation."

"The LSC has an important mission and a responsibility to use its resources wisely. I've done my best to be a champion for the LSC and its work, but I'm very troubled by its current problems," Domenici said.

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