sign in sign up
<<
Home , Arizona Capitol Times, John Stossel, Richard Epstein

Goldwater2009 Institute Annual Report

Goldwater Institute

500 East Coronado Road Phoenix, 85004

T 602.462.5000 F 602.256.7045 [email protected] www.goldwaterinstitute.org may well be remembered as the year when the sound of freedom began 2009 to echo more vibrantly in town halls and capitol buildings across America. In the face of persistent economic hardship and major threats to freedom emanating from message from Washington, hundreds of thousands of Americans stood together against the growth of the president and government power and called for a return to . In Arizona, freedom advanced on the chairman several important fronts. An Arizona ballot proposal to use state constitutions to block federal healthcare that took root at the Goldwater Legislative measures to expand (page 9), Institute has now spread to more than 30 other states improve government transparency (page 20), and more (see page 3). A second proposal to curb union power and efficiently provide transportation infrastructure (page 19) protect workers is also headed for the ballot (page 3). also helped to strengthen freedom. Freedom also advanced in court. U.S. District Court The Goldwater Institute is proud to be leading these judge Roslyn Silver agreed with the Goldwater Institute efforts. The Institute was honored in 2009 to again that Arizona’s Clean Elections system “is not supported be recognized by the Arizona Capitol Times as the Best by a compelling interest, is not narrowly tailored, and Capitol Watchdog. We are thankful to columnist George is not the least restrictive alternative. The Act is Will, who called the Institute “America’s most potent unconstitutional under the First Amendment” (page 4). advocate of .” In Tucson, judge Paul Tang ruled favorably in our These successes could not have come without the case against regulatory takings of private , commitment and generosity of our donors, who continue declaring “the Court believes that the public’s interest to make this work possible even through difficult economic Darcy Olsen Thomas C. Patterson in laws requiring compensation for partial regulatory times. We recognize that Americans still face a host of President and CEO Chairman takings is significant and arguably compelling” (page 14). challenges and threats to freedom at both the state and The ruling means that Tucson will likely have to compen- federal levels, and that it will require a tremendous sate builder Mike Goodman, who builds and refurbishes effort to turn the tide of government growth. But we student housing, for that impeded his are grateful for the significant advances freedom made projects. The case does much to uphold property rights in 2009, and are optimistic that these victories will and Proposition 207, which requires government to pave the way to a brighter, freer future. The Goldwater compensate property owners when they pass laws or Institute will remain steadfast in its commitment to regulations that diminish property values. the principles of economic liberty, educational freedom, In a victory for , a superior court and limited government. judge ruled that the city of Tempe did not have the right to revoke the business permit of Tom and Elizabeth Preston, who were initially given the go-ahead to open a tattoo studio (page 11). In a similar lawsuit, the Goldwater Institute is defending the right of Gilbert Darcy Olsen small business owner Cindy Vong to continue offering her President & CEO fish foot treatment against the state cosmetology board’s attempts to shut her down (page 11). If successful, the case will help protect entrepreneurs against arbitrary and burdensome regulations. Thomas C. Patterson Chairman

1 standing up for states

tates can stand up to the federal government, and two SGoldwater Institute proposals are showing how. As the federal government attempts to gain more control over Americans’ Arizona doctors gather at the state capitol. Polls show 65 percent health care, a proposal crafted by Dr. Eric Novack and the Goldwater Institute of doctors oppose the federal government’s proposed health care would protect health care freedom by prohibiting government from forcing expansion. A proposal crafted with the help of the Goldwater Institute { would protect doctors’ and patients’ rights against a federal takeover. people to participate in health care systems and guaranteeing the right to directly purchase lawful medical services. As the Times recently wrote, “The idea of amending state constitutions to block the core of the federal health care legislation, including the requirement that and businesses buy insurance, began at the conservative Goldwater Institute in Arizona, the state where the first such measure will appear on the ballot next year.” Arizona’s ballot measure is already serving as a model in 32 other states that have recently proposed similar measures. A second proposal that would defend the state against federal overreach is the Save Our Secret Ballot referendum, an idea drafted at the Goldwater Institute. The ballot measure would help forestall the federal “card check” bill moving through Congress, which would eliminate the right of workers to have secret ballots in elections to determine whether workplaces are unionized. Taking anonymity out of the process would enable unions and employers to pressure workers in unionization votes. If voters approve the Save Our Secret Ballot referendum, the act will amend the state constitution to protect workers’ right to a secret ballot. It is well established that the federal constitution sets the baseline for the protection of our , and that state constitutions are free to offer more protection of those liberties. All state constitutions do exactly that, containing protections of individual rights and structural restraints on government unknown to constitution. These two proposals, if approved by voters, would defend the states against growing national government power and encourage the use of state constitutions to protect some of our most fundamental liberties.

2 3 freeing speech

ree elections and free speech are at the heart of free Fsocieties. Arizona’s Clean Elections system, however, threatens both. Clean Elections offers taxpayer campaign financing to candidates for statewide and legislative office. Funding levels are determined in part by the program’s “matching funds” provision, which gives publicly financed candidates additional money to match whatever their privately funded opponents spend. That makes privately financed candidates hesitant to spend money and gives public candidates the advantage of not having to pay for fundraising. The Goldwater Institute filed a lawsuit, McComish v. Bennett, to challenge the matching funds provision based on a precedent from the June 2008 U.S. Supreme Court decision in Davis v. FEC. That case held that the goal of “leveling” electoral opportunities does not justify a campaign finance system in which “the vigorous exercise of the right to use personal funds to finance campaign speech produces fundraising advantages for opponents in the competitive context of electoral politics.” In her ruling in McComish v. Bennett, judge Roslyn Silver wrote, “The [Clean Elections] Act, in its current form, is not supported by a compelling interest, is not narrowly tailored, and is not the least restrictive alternative. The Act is unconstitutional under the First Amendment.” The Goldwater Institute expects matching funds to be eliminated by 2011. The ruling enhances First Amendment rights in Arizona, and is in keeping with the recent U.S. Supreme Court ruling in Citizens United v. FEC that overturned numerous campaign finance restrictions. Goldwater Institute constitutional government director Nick Dranias stands outside the downtown Phoenix The Goldwater Institute filed an amicus brief in the Citizens United federal courthouse where he successfully argued that case, arguing that citizens should be free to hear all arguments at all { Arizona’s Clean Elections system violates free speech. times during elections.

4 5 defending taxpayers

acing a $14 million budget shortfall, Gilbert, FArizona found itself, like cities across the nation, with difficult budget decisions to make. And, as in many other cities, Gilbert officials proposed raising taxes to cover the budget gap, ultimately approving three measures to raise various sales and use taxes. But Gilbert citizens fought back. A hastily organized group of citizens launched referendum drives to put the tax increases to a vote. But when they went to register their committees and get petitions, the town clerk told them their efforts were a waste of time, according to Kevin Ross, who chaired the citizens’ committees. Town officials claimed the tax measures were not referrable. But within 30 days citizens turned in roughly 2,500 signatures for each of the three referendum issues, far more than needed to force the issues to the ballot. They also contacted the Goldwater Institute to help battle the town’s claim that the issues were not referrable. Goldwater Institute attorney Carrie Ann Sitren looked into the town’s claim and found that the law is clear – tax issues can be referred to voters. At a town hall meeting, Sitren warned the council that any attempt to block the referendum would subject the town to a legal challenge from the Goldwater Institute. The council finally backed down and repealed all three tax measures. Goldwater Institute attorney Carrie Ann Sitren Gilbert resident David Molina wrote, “Thanks to you, it turned out stands outside Gilbert Town Hall, where she successfully defended the right of citizens to to be a great day for Gilbert’s taxpayers!…Without your…eloquent { refer tax increases to the ballot. and resolute participation in the council meeting last night, the council would not have given effect to the will of the people.”

6 7 Ciana Cunningham and her son, Keon Gregory, at the New Millenium Worldwide Academy, a private school in South Phoenix that Keon attends thanks educational opportunity { to a tuition tax credit scholarship.

ive-year-old keon wants to be a doctor when he grows up. FHe’s a bright, precocious boy and his mother, Ciana, wanted to make sure he was in a school with strong academics that would challenge him. She visited several public schools but didn’t think any of them were focused enough on academics. Her cousins attended New Millennium Worldwide Academy, a private school in south Phoenix, and she knew that their rigorous academic curriculum would be the perfect fit for Keon. But as a single mother who works as a medical assistant, private school tuition was out of the question. Arizona’s tuition tax credit scholarship program, however, opened the door for Keon. The tax credit scholarship program allows donors to take a $1,000 dollar- for-dollar tax credit for contributions to organizations that give scholarships to students to attend private schools. The program saves the state money by reducing the number of students on the public school rolls and gives parents the option to send their children to the best possible schools. New legislation in 2009 expanded the program by allowing donors to set up automatic contribution withholdings and by removing the program’s initial 2011 sunset date on corporate contributions. Thanks to the Goldwater Institute, the program is now helping more than 30,000 Arizona kids like Keon attend private schools where they are thriving, happy and, most important, learning.

8 9 protecting entrepreneurs

ast year, Gilbert entrepreneur Cindy Vong openedL a spa offering a foot rejuvenation therapy that involves customers putting their feet into baths with small Garra Rufa fish imported from China. The treatment, which is very popular in many Asian countries and other U.S. states, wasn’t so popular with the Arizona Board of Cosmetology. Despite the fact that the fish treatment was offered in a safe, sanitary environment, the board shut down Ms. Vong’s spa, and three employees lost their jobs. That an unelected government board can so arbitrarily shut down a private business is an affront to the economic freedom of all businesses, so the Goldwater Institute is taking the Board of Cosmetology to court. If successful, the lawsuit will protect Ms. Vong’s business and other businesses that run up against government officials overstepping their constitutional powers. Too many small businesses are destroyed by overzealous . In October 2007 the city of Tempe revoked Tom and Elizabeth Preston’s business permit based on the perception that their tattoo studio might attract crime. The Goldwater Institute took the Preston’s case, and after almost two years in litigation, the Prestons finally had their day in court. Justice prevailed: judge Oberbillig ruled that Tempe had no right to revoke the Preston’s permit and their right to open their business was restored. Owner Cindy Vong in her Gilbert salon. The Goldwater Institute’s work defending small business owners Vong is working with the Goldwater Institute is helping to uphold the constitutional right of economic liberty, to fight arbitrary government regulations { that threaten her business. and helping to keep regulators at bay.

10 11 leveling the playing field

hen mall developer Klutznick Company Wplayed Scottsdale and Phoenix against each other for the best tax rebate deal, they may have thought they hit the jackpot with Phoenix’s offer of a $97.4 million subsidy. The tractors were soon clearing the desert in north Phoenix to make way for the upscale CityNorth mall. But developers and city officials weren’t counting on a legal challenge from the Goldwater Institute. The Goldwater Institute sued on behalf of several Phoenix small business owners, arguing that the sweetheart deal between Phoenix and Klutznick violated the state constitution’s prohibition on corporate subsidies. Government should provide a level playing field, the Institute argued, so that entrepreneurs can build their businesses the tried-and-true and fair way – through hard work and ingenuity. That’s how lawsuit plaintiff Meyer Turken, founder of Turken Industrial , and 450,000 other Arizona small business owners have done it. The Goldwater Institute won at the Court of Appeals. The Arizona Supreme Court agreed in a unanimous ruling and struck down similar future deals. In reaction to the CityNorth deal, the Arizona legislature passed new laws prohibiting retail sales tax subsidies. When Tempe inked a sales tax subsidy deal with the developer of Sea Life Aquarium, the Goldwater Institute filed a lawsuit based on those new laws and the constitutional provisions. Tempe quickly revised its Sea Life agreement. Said Goldwater Businessman Meyer Turken stands with his employees at his Phoenix warehouse. Turken was part of a Goldwater Institute attorney Carrie Ann Sitren, “The last thing taxpayers need in Institute lawsuit to end corporate subsidies and level this economy is to subsidize a massive European business conglomerate. { the tax and regulatory playing field for all businesses. We wish the city had done things right in the first place. But if it takes a lawsuit to get the city to do the right thing, that’s what we’re here to do.”

12 13 defending hearth and home

man’s home is his castle, unless that man is Robert ALanders, who lives near Luke Air Force Base. When doctors told Mr. Landers, a retired Air Force staff sergeant and Vietnam veteran, to install a Jacuzzi on his back patio to help alleviate his knee trauma, he ran up against county officials who had passed a moratorium on all building permits in neighborhoods near the base. The draconian moratorium blocked construction of any new buildings as well as improvements to existing structures – including Mr. Landers’s Jacuzzi. Following the county’s restrictions, property values in the area plunged – about 95 percent for vacant lots and 50 percent for single-family homes. The Goldwater Institute filed claims on behalf of more than 175 property owners under Prop. 207 protections, which require government to compensate property owners when it passes laws or rules that reduce property values. In the face of $20 million in compensation claims, the county rescinded the moratorium. With the heavy-handed restrictions lifted, property owners near the base can now make home improvements, including putting Jacuzzis on their patios. Property rights also met victory in Tucson in 2009. The city of Tucson tried to shut down builder Mike Goodman, who buys run-down properties and replaces them with new housing. His developments have raised property values and helped meet the shortage of student housing. Yet, Tucson enacted demolition amendments that subjected property Retired Air Force staff sergeant Robert Landers on the owners like Mike to vague, subjective standards that instantly cut property patio of his Wittman, Arizona home. The Goldwater values. The Goldwater Institute took Goodman’s case and in November, judge Institute fought county regulations that prevented Paul Tang ruled in Goodman’s favor, writing, “The Court believes that the { Landers from placing a Jacuzzi on his patio. public’s interest in laws requiring compensation for partial regulatory takings is significant and arguably compelling.” These lawsuits have done much to vindicate rights in Arizona, and the Goldwater Institute will continue to stand by the principle that a man’s home – and his Jacuzzi – is his castle.

14 15 restoring liberty in city hall

n 2009 the Goldwater Institute did what no free-market organization has ever done: Already, Scottsdale’s Charter Task Force and mayor Jim Lane have used the Local Liberty Charter Ideveloped a clear set of policy guidelines to protect and enhance liberty in counties, cities, and to help move Scottsdale toward a model of city government that respects the rights and freedoms of its towns, with its blueprint, A New Charter for American Cities: 10 Rights to Restrain Government citizens. The town of El Mirage is considering a statutory framework to establish lasting legal authority and Protect Freedom. for freedom-friendly, growth-oriented local government. Prescott recently approved a charter amendment The report and subsequent collaboration with grassroots organizations have given citizens requiring a voter referendum on multimillion dollar spending projects. a master plan for taking back their local governments. Given that since 1972 America has gained Reformers across the country, including former Indianapolis mayor Stephen Goldsmith of Harvard’s an average of two new local governments every day, some of the most urgent threats to freedom – Kennedy School of Government and Stanford economist Paul Romer, are championing the liberty charter and some of the most promising places for reform – are at the local level. The Goldwater Local concept. And Goldwater Institute constitutional studies director Nick Dranias is meeting with groups Liberty Charter includes policies like restricting spending growth to rein in city taxing and spending, sharing Local Liberty Charter reforms in a host of cities across the country. minimizing regulations that stand in the way of entrepreneurs, and restructuring local politics to These successes are just the first steps in reviving liberty where it often affects citizens most – in our check and balance government power. cities and towns.

September 12, 2009: Hundreds of thousands of Americans march in Washington, D.C., to protest the growth of government taxes, , and bureaucracies. The Goldwater Institute’s Local Liberty { Charter is helping citizens rein in government at the grassroots level.

16 17 more roads to travel

Travis McCarthy, Deputy Project Manager for the Kiewit-Sundt Joint Venture expanding Loop 202. Legislation drawn from Goldwater proposals will allow private road construction and operation, and could quickly expand Arizona’s roadways without {draining public budgets.

itting in rush hour traffic is more than frustrating – Sit’s expensive. The average Phoenix commuter spends some 38 hours a year stuck in traffic, while Tucson commuters spend an average 42 hours. Overall, traffic congestion costs Arizonans at least $2 billion a year in lost time and wasted fuel. And with mounting state deficits, it’s unlikely that more roads can be built any time soon. New legislation drawn in part from a number of Goldwater Institute blueprints and recommendations, however, could get traffic flowing again. Together with Rep. Andy Biggs and Director of Government Reform Len Gilroy, Goldwater Institute economist Byron Schlomach advanced proposals to turn more road projects over to private companies for construction and financing. The proposals culminated in legislation that will allow businesses to build much-needed roads and new lanes without relying on state funding. Opening the door to private enterprise in transportation will also bring the benefits of more efficient roads that are built where they are most needed. Likewise, private sector partners assume some of the financial risk and thus have no incentive to underbid a project and come back for more funds later. The roads can also smooth out congestion by assessing varying tolls during certain times of the day, encouraging drivers to travel during off-peak hours. Private toll roads and lanes could greatly cut drive time and help Arizona drivers enjoy the benefits that drivers in California, Texas, and Virginia already have – roads that are built quickly to high standards, offer real congestion relief, and maximize efficiency by keeping costs to taxpayers and commuters low.

18 19 Goldwater Institute investigative reporter Mark Flatten uncovered abuse of a contracting program at Phoenix Sky Harbor Airport. Goldwater’s opening government investigations to bring more transparency to government are helping stop { abuse of political power and taxpayer money.

overnment can be terribly opaque. In Phoenix, that has given Gthe politically connected cover to profit from a city program for disadvantaged businesses, as a Goldwater Institute investigation by veteran journalist Mark Flatten revealed. Flatten found that a handful of politically connected people are abusing a program intended to give women- and minority-owned businesses preferential treatment in winning airport concession . In one case, Maricopa County supervisor Mary Rose Wilcox agreed to be named part owner of a Chili’s franchise at Sky Harbor Airport in exchange for a share of the restaurant profits. Having her name on the gave Chili’s a bidding edge, but in violation of the program requirements, Wilcox has almost no involvement in day-to-day restaurant operations. The details can be difficult to decipher, however. Wilcox’s dealings only came to light after months of Freedom of Information requests from our investigative reporter. Mazes of government bureaucracy and obfuscation generally hide such deals from public scrutiny. Through investigative reports and several proposed pieces of legislation, the Goldwater Institute is working to make government more transparent so officials can be held accountable. In the 2009 legislative session, that included four bills to bring more transparency to government. One would have prohibited politicians from using taxpayer money to promote their names and faces – essentially campaigning on the taxpayer dime. Another, which passed the legislature but met the governor’s veto pen, would have required the state treasurer to certify whether the budget is balanced, serving as a check on spendthrift legislatures and governors. Two other measures, which were enacted into law, improve fiscal transparency by requiring special districts and other government agencies to post comprehensive financial disclosures online. The Goldwater Institute is opening more government dealings to public scrutiny. Increased transparency will help end sweetheart deals that abuse political power and taxpayer money.

20 21 supporting success “The Goldwater Institute...America’s most potent advocate of limited government.” { , syndicated columnist T he goldwater institute thanks the generous individuals, foundations, and sponsors who have The Goldwater Institute is grateful for the many friends and supporters who made several new projects and helped us through these difficult economic times. In 2009, sponsors contributed nearly $3 million to fight for initiatives possible, including Jim Rodney for underwriting the Ronald Reagan Fellows internship program, Nathan freedom and win more than 10 legislative and legal battles. The solid commitment of Goldwater donors enabled and Tiffani Sproul and the Lincoln Strategy Group for sponsoring the Frank Luntz Speaker Series, Goldwater Institute the Institute to take on nine lawsuits defending educational, economic, and constitutional freedoms. The Institute board member Eric Crown for serving as the 2009 Goldwater Institute dinner chairman, Goldwater Institute board also published 18 policy research reports covering topics from health care to budget solutions to reform of electricity member John Dawson for hosting the Goldwater award dinner with Art Laffer and friends at the Scottsdale Plaza markets, and filed five U.S. Supreme Court amicus briefs. Resort, the Robert and Marie Hansen Foundation for sponsoring the Dick Armey Speaker Series in Tucson, and board The Goldwater Institute brought in speakers including former transportation secretary Mary Peters, former members Evan Scharf and John Norton for their continued sponsorship of the Goldwater Institute Scharf-Norton congressman Dick Armey, syndicated columnist George Will, journalist , National Review senior editor Center for Constitutional Litigation. Jay Nordlinger, economist Art Laffer, former Florida governor Jeb Bush, authors and commentators Mark Steyn, Jonah Goldberg, and Mary Matalin, and public opinion expert Frank Luntz.

Goldwater Institute vice president of research Matt Ladner talks with sponsor Wilbur Milhouse Guests Jon and Maggie Norris at the at the Goldwater Institute annual dinner. Goldwater Institute annual dinner.

Washington Supreme Court justice Richard Sanders discusses how state constitutions can protect against federal government overreach. Goldwater Institute president and CEO Goldwater Institute sponsor Norma Zimdahl Darcy Olsen with board member John Norton sits with Dick Armey at a luncheon in Tucson. at a Goldwater forum on property rights.

National Review senior Goldwater Institute client and editor Jay Nordlinger speaks supporter Mike Goodman with his at a Goldwater Institute friend Richard Studwell at a Tuscon forum on the current political luncheon with Dick Armey. Goldwater Institute sponsor Lucy Gardner and economic landscape. smiles during a presenta­ tion by National Review editor Jay Nordlinger, who discussed strategies for dealing with Obama administration policies. Jeff Benedict, author of Little Pink House, discusses his book and Suzette Kelo’s Sponsor Christine Toretti, Goldwater Former Colorado governor Bill Owens At the Goldwater Institute fight against abuse Institute development consultant speaks at a Goldwater Institute forum on annual award dinner, of . Jess Yescalis, and friend of the Institute the benefits of privatizing transportation political consultant Mary Bernadette Comfort. infrastructure. Matalin discusses reasons for optimism despite the current political climate. 22 23 Public opinion analyst Frank Luntz entertains guests at a Goldwater Institute luncheon with his findings on how advocates for limited government “Every state needs a Goldwater equivalent watchdog. Arizona is lucky.” can best sell their policy ideas. { Fred Reams, Goldwater Institute sponsor

Journalist John Stossel meets with Goldwater Institute student volunteers Arizona Supreme Court chief justice Ruth following a Speaker Series luncheon McGregor talks with Michigan Supreme Court at the Scottsdale Plaza Resort. justice Maura Corrigan at a Goldwater Institute forum on how state constitutions can offer Goldwater Institute greater protection of individual liberty. annual dinner guests Nicole Humphrey and Tracy Munsil.

Retired U.S. Supreme Court justice Sandra Day O’Connor greets Goldwater Institute board member Former transportation secretary John Norton at a birthday party honoring the late Mary Peters discusses ways to use senator ’s 100th birthday. private companies to build new transportation infrastructure and ease congestion.

Sponsors Jimmie Valentine and Betty Judd arrive at a Goldwater Institute [L-R]: Goldwater Institute chairman Tom Patterson, Michael and Connie forum on eminent domain. Students listen to panelists speak Goldwater, sponsors Karen and Bob Hobbs, Arizona governor Jan Brewer, Syndicated columnist George Will talks with sponsor at a Goldwater forum on how Sylvia Goldwater, retired U.S. Supreme Court justice Sandra Day O’Connor, Foster Friess at a Goldwater Institute breakfast. to revive state constitutions and Barry Goldwater Jr., and Goldwater Institute president and CEO Darcy actively use them to protect Olsen at a party hosted by Karen and Bob Hobbs in honor of the late individual liberty. senator Barry Goldwater’s 100th birthday.

A guest arrives at a Goldwater Institute forum with University of law professor , who spoke about the constitutional and legal battles that will follow corporate bailouts, nationalized Dr. Art Laffer accepts the 2009 health insurance, and gun rights. Goldwater Award for his work on how low tax rates lead to more economic prosperity. Former Florida governor Jeb Bush laughs with advisors and Goldwater Institute sponsors. Bush testified before the Arizona Legislature on how a series of school choice reforms Goldwater Institute vice have helped Florida students make large president of external affairs achievement gains. Starlee Rhoades greets National Review editor-at-large commentator Mark Steyn and author Jonah Goldberg as he arrives to speak at meets with students following the the Goldwater Institute Goldwater Institute annual dinner. annual dinner.

24 25 freedom’s message financial summary

T he goldwater institute maintained an extensive presence in both the Arizona and national T he generosity of thousands of new and renewing supporters has helped the Goldwater media in 2009 with more than 1,300 mentions, quotes, and guest appearances in outlets ranging from USA Today Institute through these difficult economic times. Supporters donated nearly $3 million to support our research, and to NBC, ABC, CBS, PBS, and NPR. litigation, and outreach. The ongoing commitment of Goldwater Institute members is ensuring that the The Goldwater Institute also increased its new media presence, with a strong Facebook following and regular Twitter Institute can continue expanding economic freedom and educational opportunity, and protecting the rights updates for policy enthusiasts who like their information 140 characters at a time. The Goldwater Institute website is guaranteed to Americans by the U.S. and state constitutions. now the most-visited Arizona public policy destination.

2009 Income 2009 Expenses Contributions 1,351,512 50% Program Services $2,177,193 80% Foundations 1,124,462 42% Fundraising 293,653 11% Program Revenue 156,714 6% Management & General 233,674 9% Other Income 45,427 2% Total Income $2,678,115 100%

Assets and Liabilities Kingman Flagstaff Cash and Equivalents $ 766,166 Bullhead City Net Fixed Assets 1,729,090 Other Assets 2,229,939 Heber Lake Havasu City Prescott Liabilities 168,323 Show Low Payson Goldwater Institute experts have traveled across the state and Net Assets $4,556,872 Wickenburg nation speaking to a host of grassroots groups, committees Cave Creek of policymakers, and other public policy organizations. That Sun City Scottsdale { outreach includes most of Arizona’s major cities and towns. Phoenix Mesa Tempe Gilbert Note: The financial information provided was compiled from financial statements which have not yet been independently audited. Casa Grande Audited financial statements will be made available at the Goldwater Institute when the audit is complete. Saddlebrooke Oro Valley Tucson Green Valley 26 27 board of directors staff

Paul Clifton Principal Hansen Family Interests

Eric Crown Board Member Goldwater Institute

John W. Dawson Chairman and CEO The Dawson Companies, Ltd.

Renee Giltner Treasurer Goldwater Institute

Barry Goldwater Jr. Seated, from left: Starlee Rhoades, Vice President of External Affairs; Clint Bolick, Litigation Former U.S. Representative Director; Darcy Olsen, President and CEO; Matt Ladner, Vice President of Research.

K. Michael Ingram Standing, from left: Jess Yescalis, Development Consultant; Joe DeMenna, Staff Assistant; Principal and Co-founder Jenn Bryson, Assistant Director of Development; Carrie Ann Sitren, Attorney; Nick Dranias, El Dorado Holdings, Inc. Director, Constitutional Government; Berry Nelson, Director of Finance and Administration; Cheryl McCarty, Office Manager;Becky Bracken, Communications Associate; Byron Schlomach, Randy P. Kendrick Director, Economic Prosperity; Dan Guerin, Communications Associate; Mark Flatten, Investigative Board Member Reporter; Andrea Woodmansee, Senior Editor; Lauren Pemberton, Donor Relations Manager. Goldwater Institute

Norman P. McClelland Chairman and CEO Goldwater Institute Ronald Reagan Fellows, Summer 2009 Shamrock Foods Company

John Norton Chairman J.R. Norton Company

Darcy Olsen President and CEO Goldwater Institute

Thomas C. Patterson, MD Chairman Goldwater Institute

R. Evan Scharf Senior Vice President, Investments (retired) UBS Paine Webber Seated, from left: Christina Kohn, Rebecca Hudson, Stacy Rogers, Kara Subach. Jeffrey A. Singer, MD Standing, from left: Bill Fathauer, Sean Reitmeyer, Danny Robb, Angelika Orletsky, President and Co-founder Jeff Ober, Jake Dale, Brad Galbraith. Valley Surgical Clinics, Ltd.

Thanks to the generosity of Jim Rodney and The Rodney Fund as well as many individual donors, the Goldwater Institute Ronald Reagan Fellows Program is grooming the next generation of leaders in the battle to protect and expand freedom. In 2009, the Institute hosted a record twenty-four interns, externs, and legal clerks, who dedicated a semester of their college or post-graduate experience to studying both the principles of a free society and practical ways to advance those principles in a contemporary setting. While at the Institute, fellows work with analysts to conduct substantive public policy research, with litigators to prepare current and future lawsuits, and with development and communications professionals to raise resources and advance liberty in the court of public opinion.

28