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LEADING THE FIGHT FOR FREEDOM & OPPORTUNITY ANNUAL REPORT 2012 LEADING THE FIGHT FOR FREEDOM & OPPORTUNITY ANNUAL REPORT 2012 The Heritage Foundation Leading the Fight for Freedom & Opportunity OUR MISSION: To formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values and a strong national defense. BOARD OF TRUSTEES PATRON OF THE HERITAGE FOUNDATION Thomas A. Saunders III, Chairman The Right Honourable The Baroness Thatcher, LG, PC, OM, FRS Richard M. Scaife, Vice Chairman J. Frederic Rench, Secretary SENIOR MANAGEMENT Meg Allen Edwin J. Feulner, Ph.D., President Douglas F. Allison Jim DeMint, President-elect Larry P. Arnn, Ph.D. Phillip N. Truluck, Executive Vice President The Hon. Belden Bell David Addington, Senior Vice President Midge Decter Edwin J. Feulner, Ph.D. Stuart M. Butler, Ph.D., Distinguished Fellow Steve Forbes James Jay Carafano, Ph.D., Vice President Todd W. Herrick Becky Norton Dunlop, Vice President Jerry Hume John Fogarty, Vice President Kay Coles James Michael G. Franc, Vice President The Hon. J. William Middendorf II Michael M. Gonzalez, Vice President Abby Moffat Kim R. Holmes, Ph.D., Distinguished Fellow Nersi Nazari, Ph.D. Geoffrey Lysaught, Vice President Robert Pennington Edwin Meese III, Reagan Distinguished Fellow Emeritus Anthony J. Saliba Derrick Morgan, Vice President William E. Simon, Jr. Matthew Spalding, Ph.D., Vice President Brian Tracy Michael Spiller, Vice President Phillip N. Truluck John Von Kannon, Vice President and Senior Counselor Barb Van Andel-Gaby Genevieve Wood, Vice President Marion G. Wells Robert E. Russell, Jr., Counselor HONORARY CHAIRMAN AND TRUSTEE EMERITUS David R. Brown, M.D. As a nonprofit 501(c)3 organization, we rely on the financial HONORARY TRUSTEES contributions of the general public: individuals, foundations and Kathryn Davis corporations. We accept no government funds and perform no The Hon. Frank Shakespeare contract work. We welcome your support. 214 Massachusetts Avenue NE | Washington, DC 20002 (202) 546-4400 | heritage.org ANNUAL REPORT 2012 Shealah Craighead Photography A Land of Opportunity, Still Message from the Chairman and the President “America is a great country because in every crisis t was a year of great drama and disappointment. Arab Spring turned to Islamist Winter … the it finds ways to renew itself. Leaders emerge. ISupreme Court upheld Obamacare … the Pentagon Men and women of courage, character and absorbed another $400 billion budget cut … and entitle- vision step up, … make the hard decisions and ment spending raged out of control as Washington sped to the edge of the Fiscal Cliff. lead America forward.” Yet 2012 also yielded some significant advances. EDWIN J. FEULNER AND BRIAN TRACY, Domestic energy production soared—despite THE AMERICAN SPIRIT, 2012 Washington’s best efforts to limit exploration and drill- ing. Governors in labor-dominated Wisconsin and Michigan blunted the self-serving power of unions. And the presidential contest showed that Social Security and Medicare reform was no longer the “third rail” of politics. The roller-coaster year proved once again that, even amid setbacks and adversity, there is opportu- nity to advance conservative policies and values. And Heritage acted to make the most of those opportuni- ties for years to come. In December, the Board of Trustees named a worthy successor to Heritage President Ed Feulner. Senator Jim DeMint agreed to take the helm, effective April 3, Barnett Photography 2013. With his leadership, we are confident Heritage Top: Sen. Jim DeMint addresses an all-staff meeting Dec. 6 in Allison Auditorium. Just minutes earlier, Heritage Chairman Tom will achieve more and even greater successes far into Saunders and President Ed Feulner (seated right) had introduced the future. him as Heritage’s President-elect. Above: Tom Saunders (left) and At Heritage, we don’t underestimate the challenges Ed Feulner flank Clare Boothe Luce Award winners Midge Decter ahead. We see the problems clearly. But we also see and Norman Podhoretz. the solutions. THE HERITAGE FOUNDATION | heritage.org 3 Our country can be truly great again. At Heritage, we educating state officials about the tremendous liabili- are laying the groundwork for a conservative comeback. ties associated with adding millions of Americans to an We have a senior management team with unparalleled already struggling Medicaid program. In many cases, vision. And we have the nation’s best researchers and the long view is prevailing. By year’s end, only 15 gover- analysts. All are committed to developing and pro- nors had committed to expand Medicaid. moting policies that will assure the next generation of Also encouraging: Our message that the numerous Americans has the opportunity to pursue their dreams taxes created under Obamacare would wreak economic and better their communities through the free exercise havoc began to resonate—even in “progressive” quarters. of their abilities. In December, 16 liberal senators—all of whom had voted for Obamacare—petitioned Senate Majority Leader Harry Achievements in the Face of Adversity Reid to delay the law’s job-killing tax on medical devices. Conservatives took some very tough losses in 2012. At year’s end, one thing was clear: Obamacare Yet every set back also presented a fresh opportunity for remained deeply unpopular with the American people. future victories. Take the Supreme Court decision on the And despite the Court’s adverse ruling on the mandate, Patient Protection and Affordable Care Act (“Obamacare”). the program’s ultimate fate was still unsettled. The majority upheld provisions that require employers Heritage’s ideas prevailed elsewhere—both before and individuals to purchase government-approved health and after the elections. For example, liberals attempted coverage whether they want it or not. Most observers to gain Senate approval of three treaties. All three car- agreed that the anti-mandate arguments—first raised by ried a long-term risk of ceding power to international Heritage—seemed by far the strongest. So Chief Justice organizations, undercutting American sovereignty. Roberts’ ruling that mandates weren’t really mandates— After scores of briefings by Heritage analysts, all just taxes—was a huge disappointment. three pacts failed. The Law of the Sea Treaty was pulled Yet the same ruling also provided an opening for back in July, never to reappear. The UN Arms Trade future success in derailing the misguided law. How? Treaty was tabled that month as well. In December, the The justices held the feds could not force states to Senate refused to ratify the UN Disability Rights Treaty. extend Medicaid coverage to previously ineligible Heritage logged other post-election wins as well: Americans by threatening to withdraw existing President Obama signed a bill establishing Permanent Medicaid funding. Normal Trade Relations with Russia. The measure With the Medicaid expansion ruled optional, included Heritage-recommended provisions enabling Heritage health policy experts immediately got to work, the U.S. to impose sanctions on Russian officials who 4 Leading the Fight for FREEDOM & OPPORTUNITY ANNUAL REPORT 2012 abuse human rights. The bill thus simultaneously advanced U.S. economic interests and affirmed our sta- Heritage in 2012 … tus as a champion of international human rights. BY THE NUMBERS Also in December, Taiwan was admitted to the Visa Waiver Program, and the wrong-headed Cybersecurity 194 PUBLIC LECTURES AND SEMINARS Act of 2012 went down to defeat for a second time. 315 ISSUE BRIEFS Heritage homeland security analysts cheered both actions. Perhaps most encouraging, our Saving the American 120 BACKGROUNDERS Dream plan to right-size the federal government and put the nation’s fiscal house in order gained ground. In May, 14 LEGAL MEMORANDA Senator Mike Lee (R–Utah) introduced a budget proposal 29 SPECIAL REPORTS entirely based on our plan. Lee’s proposal, observed The Hill newspaper, “calls for a 25 percent flat income tax rate, 28 CONGRESSIONAL TESTIMONIES transforms Social Security … and contains a Medicare premium support option. It would balance the budget by 1,400 COMMENTARIES IN MAJOR PRINT OUTLETS 2017 by cutting spending by $7 trillion.” 4,000 RADIO INTERVIEWS Lee’s bill garnered 17 votes in the Senate—17 more than President Obama’s budget. More importantly, the 1,200 TELEVISION INTERVIEWS Congressional Budget Office’s “scoring” of the proposal 350+ INTERVIEWS WITH SPANISH-LANGUAGE MEDIA demonstrated that Washington can, in fact, eliminate the deficit without raising taxes. 250,000 VISITORS TO LIBERTAD.ORG Preparing for Continued Success 11.2 MILLION VISITORS TO HERITAGE.ORG Heritage itself underwent some major transitions 10 MILLION VISITORS TO “THE FOUNDRY” BLOG during 2012. We welcomed Chicago financier Anthony J. Saliba to our Board of Trustees. Profiled in the best- 223,000 “MORNING BELL” E-NEWSLETTER SUBSCRIBERS selling Market Wizards, Saliba is the executive manag- ing director of the BNYConvergEx Group. 500,000 FACEBOOK FANS Our Senior Management team underwent major 260,000 TWITTER FOLLOWERS changes, as well. AND HUNDREDS OF THOUSANDS OF MEMBERS THANK YOU! THE HERITAGE FOUNDATION BOARD OF TRUSTEES (From left): Anthony J. Saliba, Chicago, Ill.; Meg Allen, Geneva, Switzerland; Robert Pennington, Darien, Conn.; Brian Tracy, Solana Beach, Calif.; Kay Coles James, Fairfax Station, Va.; Larry P. Arnn, Hillsdale, Mich.; David R. Brown, Trustee Emeritus, Oklahoma
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