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The Goldwater Instituteis in the business,and there’s no institutionin the country that performs that business better.

George Will, Pulitzer Prize-winning journalist MESSAGE FROM THE PRESIDENT & THE CHAIRMAN

When a few good men approached Senator court decision we received this note from parent Marc and local governments has never been more severe, our in 1988 to see if he might be willing to lend his name to a Ashton: “I am a parent who uses an ESA account to public schools continue to turn out legions of children who fledgling policy organization, the late senator replied, “You give our blind child a better education than the public can’t read their own diplomas, and the federal government go right ahead! Use my name, and we’ll hope for the best.” system could ever provide. My son is a straight-A student threatens to make us all subjects of Washington. But we are at Brophy College Prep, is taking honors classes and confident that with friends like you, the cause of freedom This year, as the Goldwater Institute celebrates its 25th receiving college credit, all while saving Arizona taxpayers cannot fail. anniversary, we are confident that the Senator would be thousands of dollars.” proud of what we have accomplished. We are grateful to our committed supporters and friends Stories of Americans like Marc and his son remind us that in this fight and hope that our partnership in the cause of Since our founding those years ago, we’ve gone full-bore for the fight for freedom is not taken up in abstraction—it is liberty will continue into the next 25 years and beyond. freedom, creating hundreds of innovative policy reforms that waged on behalf of real families, taxpayers, friends and are now law in states throughout the country. These victories neighbors. Daily Caller editor-in-chief Sincerely, are thanks to the committed and consistent support of our recently said, “The Goldwater Institute has a better batting members from every state in the nation. average than any think tank in Washington, D.C.” That’s a fine compliment to say the least, and one we plan to make Today we are pleased to share just a few of the Goldwater good on for many years to come. Darcy Olsen Thomas C. Patterson PRESIDENT AND CEO CHAIRMAN Institute’s recent achievements, starting with our pivotal victory over the National Labor Relations Board (p.7). “These We are glad to report that the Goldwater Institute maintains aren’t merely symbolic victories,” declared the Wall Street the highest possible ranking from Charity Navigator—4 Journal, “States can protect their economies from the NLRB stars—for accountability, transparency, and program with initiatives like [Save our Secret Ballot].” effectiveness. We invite you to examine our annual report for details and share with us any related questions. We hope you’ll also join us in celebrating our initial court victory defending education savings accounts, which create As we look toward our next 25 years, we have our work real opportunity and choice in education (p.3). After the cut out for us: the fiscal crisis facing our federal, state,

Message from the President & the Chairman | 1-2 RISING TO THE CHALLENGE HOWA KEY REFORM IS MODERNIZING AN OLD SYSTEM SO EVERY CHILD GETS THE BEST EDUCATION.

Eight-year-oldJordan Visser knows the answer to a question that has perplexed educators,politicians, and parents for decades. Jordan knows how to give kids a bettereducation — one that meets each student where they are and helps them achieveall they can. And the program that Jordan’s using bucks the trend by costing less money than a traditional public school education.

Student JordanVisser, pictured with his mother and sister, gets specializededucation services thanks to his education savings account, an ideaborn at the Goldwater Institute. These accounts could revolutionize the way kids across the nation are educated.

Rising to the Challenge | 3-4 SNAPSHOT Jordan was one of the first students to begin using for families of special-needs children in 2011. In its Arizona’s model education savings account program. The first year, over 150 families of special-needs students state deposits 90 percent of Jordan’s standard student enrolled, and with growing enthusiasm for the program, Arizona’seducation savings account program is the first of its funding amount into a savings account that his mom, the Goldwater Institute led an effort in 2012 to allow kindin the nation, and provides an education model for other Katherine, can use to purchase a variety of education more students to open education savings accounts. states.Developed at the Goldwater Institute, the program is now services that can best help Jordan. availableto an estimated 20 percent of Arizona students. Under In May 2012 Govenor signed legislation theprogram, the state deposits 90 percent of a student’s standard His needs are indeed unique. When he was five, doctors expanding the program to an estimated 20 percent of fundingamount into a savings account that his parents can use for were finally able to diagnose Jordan’s struggles with Arizona students. Eligible children include students from avariety of education services, including private schools, tutoring, motor coordination and vision as a mild form of cerebral failing schools, children of active-duty military families, onlineprograms, and even college and vocational training. palsy. Before that, Katherine says, Jordan just “didn’t fit and adopted children. anywhere.” Theprogram is already helping students like Elias Hines, who is The savings accounts are an education reform all states usingan education savings account to attend a private school When the Vissers moved to a new school district, the can implement. Not least among the program’s benefits is witha teaching staff who have years of training in addressing trouble really began. The district wanted to put Jordan the ability of parents to shop for education services that specialneeds like Elias’s. Elias now has an adapted schedule that in a special-education classroom and ignored his best meet their child’s needs, as Katherine Visser has done allowshim to attend school half time to work on academics, social federally required education plan for weeks. for Jordan. Also, because money in the savings account interaction,and classroom etiquette, with the other half of his When Katherine sought outside help, she learned about can be saved for college, families have an incentive to schoolweek spent attending speech, occupational, physical, and Arizona’s education savings accounts. “The program has spend wisely, helping eliminate much of the waste in the music therapies that his doctor prescribes. been a godsend,” she says. current education system.

Hismom, Holland, says “Nothing about having a special needs Jordan now attends Sierra Academy, which specializes in Equally important, education savings accounts help move child has been easy. But the ESA has been one of the most helping special-needs students. Where Jordan had once the education system into the 21st century. Education excitingand rewarding experiences of our family’s journey. The “shut down” on reading and math, he is now starting to savings accounts can help students access a variety programallows the one person who knows best what their child read on his own and enjoys doing math. of online services, private tutoring, and even university needs– their parent – to make the most important education classes from around the world. decisions for their child.” Jordan’s story is instructive for all students.

Elias Hines (8) and his mother, Holland. Education savings accounts free students from their Arizona’seducation savings account program is helping Elias state-assigned schools, and empower parents to The program has been getspecialized education services that help him overcome his obtain the best education from all available sources. challenges with autism and hyperlexia. The funds can be used for private schools, tutoring, a godsend. online programs, and saved up for college or vocational -Katherine Visser, mother of education savings training. account recipient.

The Goldwater Institute first drew up the plan for savings accounts in 2005. Arizona enacted a pilot program

Rising to the Challenge | 5-6 ENDING THE UNION STRANGLEHOLD WORKERS SHOULD BE FREE FROM COERCION. TAXPAYERS SHOULD BE FREE FROM COSTLY CONTRACTS.

Theright to a secret ballot is one of the most sacred guarantees of Americandemocracy. But that right has been under attack by the NationalLabor Relations Board, a federal agency. The Board is pushing alaw that would take away the right to vote by secret ballot in union- organizingelections and expose workers to coercion and intimidation.

During a rally at the Arizona State Capitol on March 1, 2012, union leaders attackedthe Goldwater Institute and legislators for crafting legislation to check the power of unions and protect the pocketbooks of middle-class families.

Ending the Union Stranglehold | 7-8 SNAPSHOT Fortunately, the Goldwater Institute has taken on the protect the rights of workers. Court rules gave the NLRB The Goldwater Institute is challenging this practice National Labor Relations Board—and we’ve won. 60 days to appeal the decision, but the deadline came with a lawsuit against the payout as an unconstitutional and went and the NLRB never filed an appeal. giveaway to private labor unions. Forty-seven states GoldwaterInstitute attorney Clint Before he took up residence at 1600 Pennsylvania have provisions in their constitutions that prohibit gifts Bolick stands outside the federal Avenue, Senator sponsored the ill-named Not only is this a major victory for workers, it validates of public money to private or corporations, courthousein Phoenix. The court ruled thatthe Goldwater Institute’s Save Our “Employee Free Choice Act.” Under this legislation, the Goldwater Institute’s strategy of using state including unions. These clauses can be used to keep SecretBallot amendment, now law in commonly known as “card check,” workers would be constitutions to block federal overreach. elected officials from dipping into public coffers for six states, is constitutional. forced to vote in public in union-organizing elections. their favorite corporations, unions, and pet projects. Card check would replace a secret ballot vote as the The Goldwater Institute won an injunction to stop this means for unionization and ask workers to simply sign a practice immediately in the City of Phoenix while the full It’sno secret that labor unions in America have been declining union card that is not confidential. The court’s ruling on Save court case proceeds. fordecades. With membership falling dramatically, unions Our Secret Ballot is a huge arepositioning to stop the decline and see a resurgence in Unions were keen to pass card check because they The Goldwater Institute also won a major victory that membershipand political power. Their tactics threaten the predicted the legislation would cause their memberships victory for and the protects taxpayers from undue union power at the ballot financesof cities and states, fleece taxpayers, and trample to triple—and as a result, their budgets for political authority of states to protect box. Ask anyone when Election Day is and you’ll likely workers’ rights. activism would skyrocket. So when Senator Obama get the same answer: November. So it’s no surprise that became President Obama, passing and signing card the rights of their citizens. when elections are held at odd times like March and May, TheGoldwater Institute is standing up against union abuses. check into law was at the top of the to-do list. - Clint Bolick, Vice President for Litigation, voter turnout is low. Cities across the country routinely Wecrafted the Save Our Secret Ballot amendment, now law Goldwater Institute hold their elections for city council and mayor at unusual inseven states, to forestall federal efforts to implement card Anticipating the dangers of card check, in 2009 the times and this gives unions with a special stake in city checkand to protect the right of workers to have a secret ballot Goldwater Institute drafted a state constitutional Of course, agencies inside the beltway are not the election outcomes an advantage over regular taxpayers. inunion-organizing elections. We are suing a public union that amendment guaranteeing workers’ right to a secret only forces working on behalf of powerful union special Unions have the ability to mobilize their members hasinked a deal with the city of Phoenix that requires the city to ballot. The Save Our Secret Ballot Amendment is now interests; sometimes the worst abuses are in our to ensure their preferred candidates—those willing payfull salary and benefits to police officers who solely do union law in Alabama, Arizona, South Dakota, South Carolina, own backyard. to support unaffordable wage, benefit, and pension work.Finally, the Goldwater Institute worked with legislators Tennessee, and Utah. contracts—are elected. This year the Institute worked topass a law requiring most elections to be held during the In 2011 the Goldwater Institute uncovered a dirty secret with the legislature to pass a law requiring candidate Novemberelections. This curtails the ability of unions and other When it became clear Congress wouldn’t pass card that was anything but little – the City of Phoenix had been elections at the local level to be held on the same days specialinterests to call off-season elections, which allow them check, the Obama administration shifted gears, focusing paying full-time salaries and benefits to city employees as statewide elections in November, when most voters toturn out their membership when other voters aren’t looking. instead on enacting the law by agency rulemaking. But the who do nothing but union work. The most egregious of are tuned-in and prepared to vote. This common-sense Goldwater Institute’s Save Our Secret Ballot amendment these payouts was to the local police union, meaning that change will ensure that unions aren’t dominating local TheGoldwater Institute is dedicated to preserving the right of was in the way. So, the National Labor Relations Board Phoenix taxpayers, who expect their money to pay for elections and raiding public coffers. workersto vote their conscience and to keeping governments sued Arizona. The Goldwater Institute worked with police protection, are instead paying for police officers to andtaxpayers free of undue union influence and costly contracts. the state to defend the law on behalf of a group of work for the union on things that have nothing to do with Whether it’s taking on overreaching federal agencies or construction workers, nurses, and teachers who wanted to public safety. This shakedown–commonly referred to as sniffing out union corruption at the state and local levels, be sure they had the right to vote by secret ballot. “release time”–isn’t just happening in Phoenix, but in all the Goldwater Institute is standing up for the rights of levels of government across the country. taxpayers and rank-and-file workers. In September, a federal district judge upheld the Save Our Secret Ballot amendment, making it possible for states to

Ending the Union Stranglehold | 9-10 TURNING THE WATER BACK ON HOWARIZONA COWBOYS ARE LEADING STATES TO REINVIGORATE FEDERALISM.

Tombstone,Arizona has always been the town too tough to die. The famousoutpost of the west has weathered its share of shootouts andmining busts. More recently, though, Tombstone has run up againstthe most daunting of adversaries – the federal government.

Citizens ofTombstone, Arizona use picks and shovels to clearboulders from the city’s water line. The U.S. Forest Service has deniedpermission to use heavy machinery to remove the boulders, mud, and vegetation.

Turning the Water Back On | 11-12 SNAPSHOT The town found itself in this epic battle–which has equals can possibly exist if the federal government is is little reality to the sovereignty of the arid Western consequences for state and local governments across allowed to deprive this desert-parched, historic town of States if they cannot exercise sovereignty over their the country–after torrential rains followed forest fires its ability to freely and fully restore its municipal water own local water supplies. When the feds and courts in the mountains around Tombstone. Trees, mud, and supply. undermine this principle, state and local governments boulders slid down hillsides, severely damaging the become increasingly vulnerable to federal power pipeline that brings the town’s water from mountain Sadly, Tombstone is no longer the only one fighting grabs. This is why the Goldwater Institute’s Scharf- springs to Tombstone’s dusty streets. the federal government for water rights. The federal Norton Center for Constitutional Litigation is defending Bureau of Land Management recently told the Arizona Tombstone in court. With wildfire season upon them, residents wasted no Department of Water Resources that the federal time planning and organizing to repair the pipeline. government holds senior water rights across much Equally important, if there were ever a reason for the But when the town’s tractors and crews showed up to of Arizona’s San Pedro River riparian watershed, and federal government to defer to the state’s right of local make repairs, they found the U.S. Forest Service had that the Pueblo del Sol Water Company cannot use governance under the Tenth Amendment, it is when locked them out, claiming that motorized equipment was local officials are desperately trying to protect their Residents of Tombstone, Arizona hike prohibited because the pipeline was within the National residents from the aftereffects of a natural disaster. But throughburnt-out forest to make repairs to a major Wilderness Preservation System. The feds told the crews We’re not asking to build a the federal government has a terrible track record of waterline that supplies the city. The federal government to use picks and shovels instead to clear the boulders getting in the way of local action during disaster and hasprohibited the city from using anything but horses and repair the lines. superhighway. We just want emergency situations. and hand-tools in the area. to be left alone to repair and With boulders the size of Volkswagens sitting on top During the BP oil spill, Louisiana Governor Bobby of the line, Tombstone residents again appealed to restore fully the water system Jindal wanted to send state workers out to protect the Buried under 12 feet of mud and boulders the size of the Forest Service, and found themselves entangled that Tombstone is entitled shorelines but the federal government held him off for Volkswagenslies a pipe that brings mountain spring water in bureaucratic wrangling and stonewalling. Since the weeks. Who knows how much damage to wildlife and tothe residents of Tombstone, Arizona – long known as the days of Wyatt Earp, Tombstone has had property rights to maintain. the wetlands could have been prevented if Louisiana stomping-groundsof Wyatt Earp. But if the feds have their to mountain springs and all of the water flowing in two -Nick Dranias, Goldwater Institute attorney had been able to act quickly. way,Tombstone will be little more than a relic of the long- canyons in the Huachuca Mountains. Along with those forgotten wild west. rights are access roads and pipeline rights of way. ground water sources in the area without the federal Victory for Tombstone is not only necessary to secure Until last year, the U.S. Forest Service recognized and government’s permission. This new federal policy its continued existence and protect the balance of Aftera forest fire, torrential rains, and mudslides destroyed respected those rights. Today, the federal government threatens to throw a noose around Arizona’s neck, for power guaranteed by the Constitution, but also to thecity’s water supply, residents tried to bring in tractors denies they exist and refuses to allow Tombstone to which water is life. The federal government has made secure the freedom every state and local government toclear debris and repair the lines. The U.S. Forest Service restore more than three of its 25 spring water catchments. similar moves on water rights in California, Oregon, Idaho, needs when confronting a natural disaster. blockedthe access roads and told city workers they would , and Wyoming. haveto hike up to the water line and use picks and shovels The U.S. Constitution guarantees an equal partnership to clear debris. in governance between the states and the federal The federal government’s insistence on disputing government—one in which the states are free to focus vested water rights defies years of legal precedent Federalstonewalling puts Tombstone at great risk of another on general local governance and the federal government enforcing the “principled deference” owed by the forest fire. is assigned to interstate governance, the defense of the federal government to state water laws. This deference nation, and foreign affairs. But no such partnership of has been enforced based on the recognition that there

Turning the Water Back On | 13-14 YES, YOU CAN SAY THAT DEFENDING FREE SPEECH IN A POLITICALLY CORRECT WORLD.

Freedomof speech is among the most fundamental of American rights. Butit is under attack by the crusade for political correctness. Small businessmanAlan Korwin is that crusade’s latest victim. Alan is being blockedfrom advertising his business in local bus shelters, and the Goldwater Institute has taken his fight to court.

TheCity of Phoenix violated businessman Alan Korwin’s right to free speech when itremoved his advertisement from city bus shelters, claiming that it didn’t meet the city’s nebulous “commercial transaction” standard.

Yes, You Can Say That | 15-16 Yes, You Can Say That | 18 SNAPSHOT Alan had a eureka moment in 2010 when the Arizona If decisions like this are left unchallenged, there’s a serious Legislature enacted a law to allow individuals to carry a risk that bureaucrats will apply their own personal views to Smallbusinessman Alan Korwin learned the hard way that concealed firearm without a permit. As a weapons expert, he determine which ads are accepted or rejected, violating the theright to free speech isn’t a given. When he launched an saw a business opportunity in helping people wishing to safely First Amendment’s protection from arbitrary government advertisingcampaign for his new business, a website that exercise that right. He worked with training instructors and other censorship. A vegetarian transit official could reject ads connectsgun owners with firearms trainers, he ran afoul organizations to create TrainMeAZ.com, a website connecting featuring fast-food burgers, or a conservative official could ofthe City of Phoenix. The city demanded removal of his gun owners to training services. The website makes money by reject ads for businesses associated with liberal causes, adsfrom city-owned bus shelters. The city’s reasons still selling sponsorships and advertising. for example. remainnebulous, though Korwin suspects that he upset the sensitivitiesof some politically correct bureaucrats. TrainMeAZ launched an advertising campaign to attract customers. Alan signed a contract with CBS Outdoor to place TheGoldwater Institute recognized that the city’s forced advertisements on 50 city-owned bus shelters, which CBS removalof the ads amounted to a violation of Korwin’s Outdoor manages. Soon after that, CBS Outdoor advised Officials can oversee the rightto free speech and is defending Korwin in court. Alan that the City of Phoenix had rejected his ad. content of advertising on city TheInstitute is asking the courts to strike down the City ofPhoenix Transit Advertising Standards under the free City officials told Alan the posters didn’t comply with a written property to prevent obscene speech,due process, and equal protection clauses of the requirement that bus shelter advertising only be used for material or truly inappropriate Arizona and U.S. constitutions. speech that “proposes a commercial transaction.” However, city officials were unable to provide him with any standards messages, but they cannot GoldwaterInstitute attorney Clint Bolick stated, “If this is that would explain what kind of messages would meet that dismiss ads based on a leftunchallenged, there’s a serious risk that bureaucrats requirement. They were also unable to explain how the bureaucratic whim. The free willapply their own personal views to determine which ads TrainMeAZ ads were substantially different from posters that areaccepted or rejected, violating the First Amendment’s appear on bus stops throughout the city for other businesses, speech protections of the protectionfrom arbitrary government censorship. A including jewelry stores, fast-food restaurants, and weekend First Amendment require vegetariantransit official could reject ads featuring gun shows. Negotiations to restore the ads went nowhere. fast-foodburgers, or a conservative official could reject ads clear and objective standards for businesses associated with liberal causes.” CBS Outdoor removed the posters at the city’s direction, that treat advertisers in a fair and that’s when the Goldwater Institute stepped in to defend TheGoldwater Institute is representing Alan Korwin Alan’s free speech rights. While it is perfectly reasonable for and equal manner. inhis fight against the City of Phoenix’s removal of his government officials to oversee the content of advertising –Clint Bolick, Vice President for Litigation, advertisements for firearm training. on government property to prevent obscene material or truly Goldwater Institute inappropriate messages, governments cannot be allowed to dismiss some ads and not others based on a bureaucratic To protect the rights of regular Americans like Alan Korwin, we whim. The free speech protections of the First Amendment and are asking the court to ensure governments have clear, written the Arizona Constitution require governments to enforce clear standards explaining what kind of advertising will be approved and objective standards that treat all advertisers in a fair and on government property, so no business is subject to arbitrary equal manner. enforcement.

Yes, You Can Say That | 17-18 PROTECTING YOU AND YOUR HEALTH CARE KEEPINGTHE GOVERNMENT OUT OF HEALTH CARESO PATIENTS CAN HAVE CHOICE AND ACCESS TO THE BEST CARE.

Believeit or not, the battle to protect health care freedom has only just begun. TheU.S. Supreme Court ruling upholding the congressional “tax” on individuals whorefuse to buy insurance prescribed by the federal government was a setback, butnot the final word. Long before that decision, the Goldwater Institute was hardat work developing multiple strategies to fight the federal takeover of health insuranceand the health care industry. Now the battleground has shifted from Washington, D.C. to the states.

Dr.Alexzandra Hollingworth examines a patient at her office in Phoenix. Dr. Hollingworthfears Obamacare and other government health care mandates will get between her and her patients.

Protecting you and your healthcare | 19-20 SNAPSHOT In 2010, seven states overwhelmingly passed the Board all-powerful: its directives can’t be meaningfully Goldwater Institute’s Health Care Freedom Act. The reviewed by Congress or challenged in court, and the Health Care Freedom Act amends state law to protect agency itself is virtually unrepealable. Never in American people’s rights to make their own health care decisions history has the government given an agency so much WhenDr. Alexzandra Hollingworth went to medical school, and to prevent the government—whether in Washington authority with so little oversight. shelooked forward to diagnosing patients, treating them, or state capitols—from forcing people to buy government- andhelping them get well. What she found as she entered sanctioned health insurance. Our lawsuit, Coons v. Geithner, challenges this practice,though, was a maze of and paperwork. unconstitutional delegation of power to the Independent Just two years later, the Health Care Freedom Act is now Payment Advisory Board and other aspects of the The federal health care law has reduced patients’ control law in 17 states. law that violate federalism and individual liberty. The overtheir own care. The Goldwater Institute is taking on the Institute’s legal team will argue the case before the U.S. lawin three ways. First, our lawsuit working its way through So far it’s working by stopping states from doing the Court of Appeals for the Ninth Circuit in 2013. federalcourt would eliminate the price-setting board at the federal government’s bidding. Obamacare relies on the heartof Obamacare. Second, the Goldwater Institute-drafted states to establish costly and burdensome insurance At the same time, we continue to innovate with practical HealthCare Freedom Act, now law in 17 states, guarantees exchanges, which are bureaucracies where consumers new ideas to reduce the cost of medical services citizens the right to choose their own insurers and health must purchase a government-selected health insurance and improve access to them. These reforms include providers.And third, we are working with states to stop state policy to comply with the federal law, and will be the eliminating restrictions on out-of-state health insurance, implementationof health insurance exchanges. These steps primary vehicles through which Obamacare’s mandates, rolling back some insurance madates, and requiring price rollback the control the federal government is taking over our taxes, and penalties are enforced. But the federal law transparency for health services. health care. gives states an option: if a state decides not to set up and fund an exchange, the federal government will do It’s almost always the case that when you give the We are also advancing a vision of a real health care market it for the state. The federal government was hoping the federal government an inch, they will take a mile, and thatputs patients in charge. That vision includes reforms like states would foot the bill for enforcing Obamacare and the Goldwater Institute believes that we cannot give healthsavings accounts, the ability to purchase insurance never anticipated that most would opt not to set up one more inch to the federal government in an area so across state lines, requiring price transparency for health exchanges. The Goldwater Institute spearheaded the precious as our health care. Many families, individuals, services,and rolling back certain insurance mandates. These nationwide effort to encourage states to opt out of state- and businesses have invested a great deal to provide changeswould enhance freedom while making health care funded exchanges. So far only 17 states have agreed to insurance that works for them. The federal law disrupts more accessible and affordable. set up exchanges and a majority of states have said no. those arrangements and penalizes those who have a general surgeon in Fifteen states with the Health Care Freedom Act on the worked hard to provide for themselves. And we will not Dr. Alexzandra Hollingworth, Phoenix,Arizona, fears that the federal health care law will take books have already declined to fund an exchange. allow federal intrusions into some of the most important health care choices away from her patients. decisions that individuals make for their families to The Goldwater Institute is also challenging in court the go unchallenged. linchpin of Obamacare’s health care cost-containment strategy. Set to launch in 2014, the Independent The Institute has realized outsized influence and Payment Advisory Board is a panel of 15 unelected, leadership on health care policy across the nation—a role unaccountable bureaucrats with virtually free reign to set upon which we will continue to build. Medicare policy and health care reimbursement rates. Far from being “advisory,” the federal law makes the

Protecting you and your healthcare | 21-22 TOMMORROW’S LEADERS GOLDWATERINSTITUTE INTERNS PREPARE TO DEFEND FREEDOM FOR COMING GENERATIONS.

FormerRonald Reagan fellow Jacek Spendel has launched his own academy for learning about liberty in his native Poland.

TheGoldwater Institute is preparing leaders who will protect freedomfor generations to come. The Fellows programequips young people with the knowledge and skills required to advance principles.

Goldwater Institute law clerk Lana Harfoush is now an attorney at the Pacific Legal Foundation.

Farah Sutton, pictured with her 6-year-old daughter Kylee, workedas a Reagan Fellow researching education policy in the summer of2012. Inspired by her experience at Goldwater, Farah plans to launch her own political action committee. Every year the Institute gives dozens of students the chance to work on policy research, media and communications, development and fundraising, and legal research. With close staff mentoring, seminar attendance, and event participation, these students gain a foundational understanding of classical liberal principles and first-hand knowledge of how those principles relate to current public policy. They also learn how organizations like the Goldwater Institute shape public policy at both local and national levels.

Several interns, including Jacek Spendel, have put that experience to work around the world.

Jacek had been organizing the Language of Liberty English Camp in Poland when he met Tom Patterson, chairman of the Goldwater Institute. Tom encouraged Jacek to apply for an internship, and he was accepted.

Jacek says, “the Institute surprised me a lot, both with the caliber of its professionals and the constant activity taking place every day. The various parts of the Institute–litigation, policy research and analysis, development and communications–all work together to bring ever more attention to good policy and results.”

Jacek credits the Goldwater Institute with teaching him how to advance freedom, not merely in theory, but in the real world. “My dream,” he says, “is to use this knowledge back in my country to make it more just and free.”

When he returned to Poland, Jacek launched an organization called Polish-American Leadership Academy, which is dedicated to educating the next generation of leaders in Poland on the principles of a free society. KatherineBlades, a Goldwater Institute law clerk in 2011 and 2012, now serves as a lawyer in the Interns like Jacek are taking the experience and knowledge they ArizonaAttorney General’s office handling family welfare cases. gain at the Goldwater Institute to advance freedom worldwide.

Tommorrow’sA Custom Education Leaders | 3-425-26 [ 4 ] [ 1 ]

“Isupport the Goldwater Institute because you don’t justtalk about issues and put out research reports; you get things done.”

- Patricia Hawkins, former Reagan appointee to the National Advisory Council of the Small Business Administration and Goldwater Institute member since 1995.

In the last 10 years, the Goldwater Institute’s family of members has grown from 50 [ 1 ] Goldwater Institute members people to people in all 50 states. Thanks to your generous commitment to freedom, the Kim and Stephen Hochschuler [ 2 ] Goldwater Institute has changed or enforced more than 100 laws across the country with their daughter, Jessica, at the in just the last few years. From the U.S. Supreme Court and state capitols to city halls GoldwaterInstitute Annual Dinner. across America, the Institute’s policy and legal work is changing lives and each win makes us all just a little bit freer. [ 2 ] Goldwater Institute member Emajane Benware at the In 2012, the Goldwater Institute’s members generously contributed nearly $4 million Annual Dinner. to support our work. Thanks to these contributions, we were able to successfully defend the Goldwater Institute’s education savings accounts and the Save Our Secret Ballot amendment in court, and inspire the adoption of 15 new laws advancing freedom nationwide. [3 ] Arizona State Senator Don [ 3 ] [ 5 ] Shooter and Allison Bell Your support also allows us to bring in top journalists, authors, and commentators to ofAPS at the Goldwater Institute educate and entertain our members at special events. Annual Dinner.

This year we hosted New York Times best-selling author , author [ 4 ] Arizona State Senator of Ladies For Liberty - Women Who Made A Difference In American History and Kelli Ward and Daily Caller confidant of Prime Minister Margaret Thatcher John Blundell, political commentator and editorTucker Carlson greet editor-in-chief of the Daily Caller Tucker Carlson, author and host of a each other at the Goldwater show , and Oklahoma Governor Mary Fallin. Institute Annual Dinner.

[ 5 ] Goldwater Institute members Jack Biltis and Stephen Hochschuler listen to remarks by Tucker Carlson at the Goldwater Institute Annual Dinner. Sponsorships and Gatherings | 27-28 [ 7 ]

[ 8 ] [ 10 ]

[ 11 ] Renowned trumpeter and jazz musicianDr. Jesse McGuire performs [ 6 ] the“Star-Spangled Banner” at the Goldwater Institute Annual Dinner. [ 8 ] Russell Smoldon of Salt River Projectlistens as political pundit Tucker [ 11 ] Carlsonspeaks at the Goldwater Institute Annual Dinner.

[10 ] Goldwater Institute members Jack and Karla Solomon with their niece, Miss Arizona U.S.A. Erika Frantzve, at theGoldwater Institute Annual Dinner.

[ 6 ] Arizona Senate PresidentSteve Pierce [ 12 ] andGoldwater Institute Executive Vice President [ 9 ] Starlee Rhoades greet each other at the Goldwater Institute Annual Dinner. [ 9 ] Oklahoma [12 ] Goldwater Institute members [ 7 ] Goldwater Institute President & CEO GovernorMary Fallin James Rodney and Harrie Darcy Olsen welcomes guests at the addresses guests at Monteithat the Annual Dinner. Goldwater Institute Annual Dinner. theGoldwater Institute Annual Dinner.

Sponsorships and Gatherings | 29-30 REACHING OUT “THETHING THAT SEPARATES THE GOLDWATER INSTITUTE FROM THE MANY THINKTANKS THAT POPULATE WASHINGTON IS THAT YOU ACTUALLY DO STUFF.” - Tucker Carlson, political commentator and Daily Caller editor

The Goldwater Institute’s strategy of using state constitutions to protect freedom continued its successful expansion across the country, with Alabama, Montana, and Wyoming becoming the latest states to adopt Goldwater-drafted state constitutional amendments to protect their residents’ fundamental rights to direct their own health care and vote by secret ballot in union- organizing elections. And our legal work has been used in dozens of cases across the country to eliminate unconstitutional burdens on free speech, campaign finance, and other areas affecting political expression.

When Pulitzer Prize-winning journalist says this about your work, “The Goldwater Institute is a ‘force multiplier’ because it is a few good men and women who know how to take a state issue and give it national resonance,” it makes other journalists sit up and take notice. The Goldwater Institute’s policy recommendations, lawsuits, lawyers, and analysts were featured in national publications such as , , USA Today, and , and on numerous television and radio programs including Stossel, Fox & Friends, and The Show.

Reaching Out | 31-32 OPERATING INCOME FINANCIAL SUMMARY 4% INDIVIDUALS $2,674,495 ...... 68% Having grown from an organization with 50 members to members in all 50 states, the Goldwater Institute has become a force for policies that defend freedom across the country. Our generous family of supporters has given us financial 28% FOUNDATIONS stability and the resources we need to ensure the success of our work. In 2012, the Goldwater Institute experienced $1,092,500 ...... 28% 35 percent growth in operating revenue, excluding litigation cost recovery in 2011.This broad base of support 68% OTHER INCOME ensures that our research and litigation are independent, and that the Goldwater Institute is not reliant on any single $148,738 ...... 4% source of income. We continue to earn top ratings among nonprofit organizations, including receiving a 4-star rating from Charity Navigator for accountability, transparency, and program effectiveness. TOTAL: $3,915,733 ...... 100%

EXPENSES

9% Paul Clifton Barry Goldwater Jr. Darcy Olsen PROGRAM SERVICES $2,712,064 ...... 78% PRINCIPAL, HANSEN FAMILY INTERESTS FORMER U.S. REPRESENTATIVE PRESIDENTAND CEO, GOLDWATER INSTITUTE 13% FUNDRAISING Eric Crown Randy P. Kendrick Thomas C. Patterson, MD $436,894 ...... 13% CHAIRMAN EMERITUS, INSIGHT ENTERPRISES, INC. BOARDMEMBER, GOLDWATER INSTITUTE CHAIRMAN, GOLDWATER INSTITUTE 78% MANAGEMENT AND GENERAL $330,468 ...... 9% John W. Dawson Norman McClelland TOTAL: $3,479,426 ...... 100% CHAIRMANAND CEO, THE DAWSON COMPANIES, LTD. CHAIRMAN, SHAMROCK FOODS

Renee Giltner John Norton TREASURER, GOLDWATER INSTITUTE CHAIRMAN, NORTON FOUNDATION

CASH AND EQUIVALENTS NET FIXED ASSETS OTHER ASSETS LIABILITIES NET ASSETS $722,832 $1,717,581 $2,910,703 $119,158 $ 5,231,958 NOTE:The financial information provided was compiled from financial statements thathave not yet been independently audited. Audited financial statements will be Financial Summary | 33-34 made available at the Goldwater Institute when the audit is complete. TheGoldwater Institute is a‘force multiplier’ becauseit is a few good menand women who knowhow to take a state issueand give it national resonance.

George Will, Pulitzer Prize-winning journalist

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