Alberta Law Foundation concerned over possible legal aid funding changes

A non-profit that provides a portion of Alberta's legal aid budget is concerned about potential funding changes imposed by the provincial government.

The Alberta Law Foundation receives interest revenue from Alberta lawyers' pooled trust accounts, where client funds are held.

The foundation distributes the money to other organizations through grants, and also has a legislative mandate to give 25 per cent of the annual interest amount to Legal Aid Alberta (LAA), which offers legal services to low-income Albertans.

Foundation executive director Byron Chan said his organization has been told to expect that contribution to double to 50 per cent of annual interest revenue.

He told CBC News that he's concerned the funds will be used to make up for reduced provincial funding for legal aid.

"As the interest rate continues to decline, [our revenues] will continue to shrink over the next couple of years," Chan said.

"It begs the question of how is there going to be continued, stable funding for legal aid at its current levels — never mind any increase to its spending or enhancement of its services."

The foundation also hands out grants to dozens of organizations every year for legal education, law reform and access-to-justice initiatives — recently funding a new pro bono legal service for Indigenous people in Calgary and research on family law reform. Chan said he's worried about the possibility of a smaller pot of money for those groups too.

Chinenye Anokwuru, press secretary for Justice Minister Mickey Amery, said in a statement Tuesday that "access to an effective and affordable justice system is our top priority, and that includes making sure legal aid is sufficiently funded."

She said the government is "carefully considering all options when it comes to funding legal aid, including changing the statutory contribution that the Alberta Law Foundation provides to Legal Aid Alberta."

In response to a follow-up question about whether increasing the foundation's contribution would be accompanied by a provincial funding reduction, Anokwuru repeated that the province is "carefully considering all options."

A statement from a spokesperson for Legal Aid Alberta doesn't address the funding discussion, but says the organization has a critical role in protecting Albertans' legal rights and ensuring the justice system works efficiently.

"We remain focused on carrying out our mission of resolving legal problems for Albertans and protecting the rule of law for the benefit of everyone."

Legal Aid Alberta contribution hit nearly $39M in 2024

The Alberta Law Foundation's most recent LAA contribution added up to nearly $39 million, according to the organization's 2024 annual report.

That's almost double the 2023 contribution, and significantly higher than any time in the past six years — a reflection of the recent period of high interest rates. Previous annual reports show the mandated LAA payment hit a low of just $1.7 million for the foundation's 2020-2021 fiscal year.

Chan said there have been times when the foundation has made additional one-time payments to legal aid on top of the required contribution.

The foundation's 2024 report shows more than $200 million in reserve funds — far higher than any previous year. 

Chan said the reserves have built up more in recent years due to high interest rates. But he said the organization isn't just sitting on the money. It still goes out in grants, in some cases to support core operations for non-profits, and the reserves are managed to ensure a flow of reliable funding from year to year.

Many of those organizations fill the gap between the eligibility for LAA assistance and shouldering the full cost of hiring a lawyer, including community and student legal clinics.

"If the government moves forward with this proposal and frames it through stable funding for legal aid, really what's happening is the government is taking money that belongs to the people to offset its spending shortfalls," Chan said.

"[It's] coming at the expense of the non-profit organizations that we fund to provide the critical legal supports and services to vulnerable and underserved communities in Alberta."