FACT SHEET

October 26, 2004

Political activity is a primary purpose of the Washington State Labor Council

The Evergreen Freedom Foundation, sharing the concerns of many union workers that large amounts of collective bargaining dues find their way into elections, filed a citizen’s action complaint against the Washington State Labor Council (WSLC). The Public Disclosure Commission’s investigation confirms our allegation that only a fraction of the WSLC’s extensive political activity is disclosed to the public.

The PDC staff investigation revealed that the WSLC has six primary programs (or purposes),(1) one of which is political activity. However, 32 percent of WSLC’s expenditures from nonpublic sources was spent on politics. How much of an organization’s expenditures must be dedicated toward politics before the organization is required to register and report as a political action committee?

The Washington State Labor Council (WSLC) agreed it spent over half a million dollars on state electoral activity in 2002.(2) Of the WSLC’s 2002 expenditures from nonpublic sources,(3) 24 percent went to state electoral activity,(4) including direct contributions from the WSLC(5) and transfers to its own political action committee.(6) This 24 percent does not include the WSLC’s expenditures for voter registration, training, or list maintenance.(7) Another 8 percent of the expenditures from nonpublic sources went to federal campaigns,(8) while 3 percent went to lobbying expenses.(9) Interestingly, the WSLC reported on its 2002 IRS 990 form that it spent zero dollars on politics.

In the interest of transparency, the WSLC should comply with the Public Disclosure Act.

RCW 42.17.010: It is hereby declared by the sovereign people to be the public policy of the state of Washington: that political campaign and lobbying contributions and expenditures be fully disclosed to the public and that secrecy is to be avoided.

1 PDC Report of Investigation, Section 4.6, 4.23.5.
2 Declaration of Bernice Vance, PDC Investigation Exhibit 22, page 1. 13.77% of expenditures spent on state electoral activity in FY 2003 (4/02 through 3/03). Total expenditures for the year are reported on 2002 IRS Form 990 as $4,167,989. 13.77% of the expenditures equals $573,932.
3 In 2002, WSLC received $1,797,186 in public funds. In 2002, WSLC received $1,797,186 in public funds. RCW 42.17.128 states that public funds shall not be used for political campaigns. Deducting public funds from total expenditures of $4,167,989 leaves the balance of $2,370,803.
4 $573,932 of $2,370,803.
5 Public Disclosure Commission, WSLC L3 form, filed February 12, 2003.
6 Public Disclosure Commission, WSLC PAC 2002 C3 forms.
7 Declaration of Diane McDaniel, PDC Investigation Exhibit 17, page 1, paragraph 4.
8 Approximate percentage based on Declaration of Diane McDaniel, PDC Investigation Exhibit 17, page 1, paragraph 2. Diane McDaniel estimates that one-third of the WSLC’s Labor Neighbor program (shown as Unreported State Elections on chart) goes toward federal elections.
9 Public Disclosure Commission, WSLC L3 form, filed February 12, 2003.

Contact: Jami Lund | Project Manager | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org