Lawsuit Challenges Phoenix Agreement Which Pays Employees To Conduct Union -Not City- Business

Lawsuit Challenges Phoenix Agreement Which Pays Employees To Conduct Union -Not City- Business

By Terri Jo Neff |

Attorneys for the Goldwater Institute and the City of Phoenix will be in court Wednesday to argue over whether government workers subjected to a collective bargaining agreement can be forced to finance union activities, including a union’s political endeavors.

The issue before Judge Daniel Martin of the Maricopa County Superior Court is a legal challenge brought on behalf of two city employees over a practice known as “release time” approved by the Phoenix City Council in 2019. Release time allows some city employees to be paid to work for their private union instead of working for the public.

Employees utilizing release time are allowed to engage in activities such as lobbying, union membership drives, filing grievances against the employer, and wage and benefit negotiations. Release time activities of city employees are subject to the discretion and control of the union, not the city which pays the employees.

In May 2019, the City of Phoenix signed a Memorandum of Understanding (MOU) with the American Federation of State, County, and Municipal Employees, Local 2384, Field Unit II (AFSCME) which serves as the exclusive bargaining unit for a wide range of public workers, including but not limited to electricians, mechanics, security guards, street technicians, and maintenance workers.

AFSCME is the nation’s largest public services employees union with more than 1.3 million working and retired members. The MOU applied to all City of Phoenix employees assigned under Field Unit II whether union members or not, and it provides for myriad release time benefits, including four full-time release positions.

“That means that four city employees are released full-time to work exclusively for the union at the public’s expense,” according to the Goldwater Institute, which also noted nearly 3,200 additional paid work hours are available to other union representatives. That is roughly equivalent to 80 weeks of full-time work.

The MOU between Phoenix and AFSCME also guarantees compensatory time for high-ranking union officials using release time, as well as additional hours and payment for AFSCME members who attend union seminars, lectures, conventions, and workshops.

In October 2019, attorneys with the Goldwater Institute sued the City of Phoenix on behalf of two Field Unit II city employees who contend the release time salaries and benefits in the MOU are funded by all government employees of a specific bargaining unit.

The result, the lawsuit argues, is that non-union members are forced to fund union activities in violation of the First Amendment to the U.S. Constitution, along with Arizona’s Right to Work laws and other state constitutional provisions, the employees contend. The lawsuit also contends the four full-time release time employees “are not contractually required to provide an accounting to the City for how they use release time.”

Judge Martin will hear oral arguments Wednesday and Friday in dueling motions for summary judgment filed by the parties. Court records show AFSCME has been granted intervenor status in the case.

Among the organizations also opposed to release time policies is the American Legislative Exchange Council (ALEC) which has developed draft legislation that lawmakers across the country can use in an effort to ban paid union activity by public employees.

Under the ALEC draft legislation, it would be “against public policy” for a public employer like the City of Phoenix to enter into a deal with any private union to compensate a public employee for union activities.

“While public employees should not be prohibited from freely associating outside of their employment duties, including hiring individuals to help represent their interests, this should occur at public employee, not taxpayer, expense,” according to the ALEC website.

How To Fix Politics In The Classroom? Sunlight.

How To Fix Politics In The Classroom? Sunlight.

By the Goldwater Institute |

In too many of our nation’s classrooms, children are being taught that everything should be seen through the lens of race—a divisive and damaging worldview that negates the value of the individual. Instead of reading our country’s founding documents, students are being told that America was founded on fundamentally hateful and intolerant ideas. And they’re learning that the American Dream isn’t really for everyone. What is a parent to do?

In a new paper released by the American Enterprise Institute, Goldwater Institute Director of Education Policy Matt Beienburg shows that in order to truly put parents—and not bureaucrats—in control of kids’ education, more sunlight is the answer. And Goldwater is leading the effort to bring that sunlight to school districts across America, in the form of academic transparency.

To date, state lawmakers have dealt with the issue of politically charged classroom content by either doing nothing or banning certain curricula or materials. But neither path is sufficient to proactively root out political content in our schools. And neither path gives parents the power they need to make the best possible decisions regarding their children’s education.

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U.S. Supreme Court Invalidates California Donor-Disclosure Rules

U.S. Supreme Court Invalidates California Donor-Disclosure Rules

On Friday morning, the U.S. Supreme Court, in a landmark decision, struck down California’s demand that nonprofit advocacy groups turn over confidential information about their donors. The 6-3 ruling in Americans for Prosperity Foundation v. Bonta is considered a major victory for First Amendment advocates.

At issue was a dispute that began in 2014, when the Thomas More Law Center and the Americans for Prosperity Foundation went to federal court to challenge California’s rule.

“The case ends more than a decade of litigation that began when then-Attorney General Kamala Harris abruptly ended the practice that allowed nonprofits to turn in their annual reports with private information redacted, as a security measure. That had been allowed for many years, since if the Attorney General’s office ever actually needed such information, it could easily get it in many other ways—such as a subpoena or audit,” explains Timothy Sandefur of the Goldwater Institute in a blog post. “But in 2010, Harris ordered any nonprofit that collected money in California to hand over copies of their unredacted IRS paperwork. That information would be placed into a government database that Harris promised would be kept confidential. Of course, it wasn’t—a trial judge later found almost 2,000 instances in which Harris’s office allowed this information to be publicly circulated. (The Goldwater Institute received such a demand, but refused to disclose this information.)”

Chief Justice John Roberts wrote the majority opinion which reverses the 9th Circuit Court opinion.

In his blog post, Sandefur says the Court’s ruling “vindicates the privacy rights of millions of Americans who choose to contribute to nonprofit organizations that articulate the political, cultural, or religious values they hold dear. That choice is guaranteed by the First Amendment—yet many federal, state, and local officials continue to devote their powers to stripping donors of their privacy rights whenever they exercise that constitutional freedom. This is often done under the guise of “transparency,” but transparency is for government—privacy is for people. Today’s decision is a victory for the free speech rights of all Americans, whatever their ideological background—and we look forward to continuing the fight for freedom of speech and privacy at the federal, state, and local levels.”

We Won The Battle For An Arizona Flat Tax!

We Won The Battle For An Arizona Flat Tax!

By Victor Riches of the Goldwater Institute |

The Arizona Legislature just approved the Goldwater Institute’s plan to dramatically reduce income taxes and simplify the state’s tax code, making Arizona one of the lowest-tax states in the country. This historic reform will restore Arizona’s competitive advantage as a low-tax state and provide a boost for small business owners still struggling to recover from the COVID pandemic.

This plan collapses Arizona’s pre-Prop. 208 tax rates into a single, low 2.5% rate, and it caps the maximum tax rate at 4.5%. This means that no one’s taxes will increase because of Prop. 208. In fact, everyone’s income taxes will go down as a result of this victory.

Additionally, the Goldwater Institute has challenged the constitutionality of Prop. 208, and we’re now awaiting a decision from the Arizona Supreme Court. Fortunately, this new tax reform measure will mitigate the negative effects of Prop. 208—which otherwise would have decimated our economy—and help ensure the state’s future economic success.

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Congress Can’t Use COVID Relief To Stop State Tax Cuts

Congress Can’t Use COVID Relief To Stop State Tax Cuts

By the Goldwater Institute |

With states still feeling the economic damage done by the COVID-19 pandemic, President Joe Biden signed the “American Rescue Plan Act” to give states billions of federal dollars to help them recover. But there’s a catch: The Act effectively prohibits states that take the money from cutting taxes through 2024. That’s unconstitutional—and the Goldwater Institute is joining one legal challenge to it.

Congress can sometimes put conditions on grants to states, but it can’t take advantage of an emergency to coerce states into giving up control of such an important issue of state policy, and it can’t impose a condition on a grant that has nothing to do with the grant’s purpose. That’s why many state attorneys general have filed federal lawsuits challenging this “Tax Mandate”—and it’s why the Goldwater Institute has filed a brief supporting the state of Ohio’s challenge.

THE TAX MANDATE

provision in the Act says that states cannot use federal grant money to “directly or indirectly offset” a loss of revenue resulting from a tax cut enacted between March 2021 and the end of 2024. If they do, the U.S. Secretary of the Treasury will take the federal money back, up to the amount of revenue the state lost. That appears to mean that states that cut taxes between now and 2024 will have to pay back some or all their grant money.

The Tax Mandate’s defenders say this is just to make sure states actually use federal money for COVID relief. But the Tax Mandate doesn’t actually do that. The Act lists four broad categories of things a state can spend federal grant money on. After states spend the money, they have to report how they spent it to the Treasury Secretary. If the Secretary determines that a state spent money on something that doesn’t fall into one of those categories, she can take that money back.

So if a state receives a grant of, say, $5 billion, it has to show that it spent $5 billion on things the Act allows. If some things it reports weren’t appropriate uses of the money, the Secretary can recoup that portion of the grant. That alone ensures that states spend their federal grants for the purposes Congress intended.

The Tax Mandate, on the other hand, does not help ensure that states spend their grant money properly. Instead, it focuses on whether a state indirectly used federal funds to offset revenue lost as a result of tax cuts. That might make sense if the Act were otherwise designed to deny federal money to states that could afford to pay for their own COVID relief (if they put other policy priorities aside). But the Act doesn’t do that.

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