PAC FAQs

by Lantz Simpson

DEFINITIONS AND GOALS

Q - What is the relationship between the SMCFA and the SMCFA – PAC?

A – The PAC exists at the discretion of the SMCFA. This is in the PAC bylaws.

Q – What is the purpose of the PAC?

A – The purpose of the PAC is to further the political goals of the SMCFA.

Q – What is the main political goal of the SMCFA?

A – The main political goal of the SMCFA is to have the best possible Board of Trustees.

LEGAL

Q – Under what legal authority does the SMCFA – PAC function?

A – The state's Fair Political Practices Commission (FPPC).

Q – What are the main legal obligations of the SMCFA – PAC?

A – To raise and spend its money according to law and to make reports of its activities to the FPPC on a timely basis.

Q – Who is responsible for making sure all PAC reports are accurate and timely filed?

A – By law, the Treasurer of the PAC.

Q – Who is currently the Treasurer of the PAC?

A – Lantz Simpson

Q – Who selects the Treasurer of the PAC?

A - The PAC Governing Board.

Q – Who actually prepares the reports?

A – The accounting firm of Miller, Kaplan, based upon the information sent to them by the SMCFA.

Q – Are PAC reports available?

A – Yes, they are posted on the FPPC website. The reports are also on file in the FA office and available for inspection to PAC members at a reasonable date and time.

Q – Who owns the funds of the PAC?

A – The funds become property of the PAC upon receipt and may not be refunded to or withdrawn by any contributor.

GOVERNANCE

Q – Who are the members of the SMCFA – PAC?

A – Per the PAC Bylaws, SMCFA members who have contributed $35 or more in one calendar year to the PAC are members of the PAC.

Q – How is the SMCFA – PAC governed?

A – The PAC Bylaws govern the PAC. The Bylaws were last amended at a meeting of PAC members in 2002.

Q – Who makes the decision on how to spend PAC monies?

A – Per the PAC Bylaws, the Governing Board of the PAC. The membership of the PAC may recommend how the PAC funds should be spent. As a matter of policy, the PAC Governing Board has only spent funds on candidates endorsed by the Assembly.

Q – Has the PAC ever funded groups, organizations, or candidates not endorsed by the Representative Assembly?

A – No.

Q – Who is on the Governing Board of the PAC?

A – The President of the FA, the Political Director of the FA, and one PAC member elected at-large by the PAC membership at the annual PAC meeting. Currently, the members of the PAC Governing Board are Lantz Simpson , Martin Goldstein, and Howard Stahl.

Q – Why does the PAC Governing Board have sole authority and how does it make its decisions to spend PAC funds?

A – The PAC Governing Board has a political duty to carry out the political strategy of the SMCFA. This is done as follows: 1 - The Political Director makes recommendations to the Representative Assembly for political endorsements, including Board and legislative candidates. 2 – The RA either approves or rejects the recommended endorsements. 3 – Once candidates

are endorsed, the PAC Governing Board makes tactical decisions on how to spend PAC funds. This decision is based upon how much money is available and how the money should best be spent. It is the duty of the President and the Political Director to work with all of the key players in the elections to make the best determination on how to spend the PAC funds.

COLLECTION AND USE OF FUNDS

Q – In the 2006 Board elections, how were the majority of the PAC funds spent?

A – A majority of the PAC funds were pooled with the SMRR (Santa Monicans for Renters Rights) mail campaign, which proved to be a winning strategy as all four of the SMCFA endorsed candidates were elected to the Board. The remaining PAC funds were contributed to individual Board candidates.

Q – How should most of the PAC funds be spent in the 2008 election?

A – In the opinion of the SMCFA president, the SMCFA and its PAC should employ the same winning strategy as 2006.

Q – Who may contribute to the PAC?

A – Any person, corporation, labor union, or organization may contribute, but only SMCFA members may be PAC members.

Q – If I contribute to the PAC, will I be “reported”?

A – You will be reported to the FPPC if your annual contribution to the PAC exceeds $99.

Q – What are the ways that the SMCFA – PAC may raise funds?

A – There are three ways to raise funds for the PAC: 1 – voluntary contributions through check or payroll deduction; 2 – fund raising activities; 3 – by the SMCFA allocating monies from its general fund to its PAC.

LOANING FUNDS

Q – In the 2006 election, did the SMCFA – PAC raise sufficient funds using methods one and two above?

A – No. In 2006, the Assembly voted to lend the PAC $45,000. It was the funding of that loan and the funds used from that loan that led to the SMCFA's endorsed candidates winning the Board elections.

Q – Has the loan to the PAC been “forgiven”?

A – No. It is not legal for the loan to the PAC to be forgiven. The loan must be repaid.

Q – What are the practical steps remaining to repay the loan?

A – A vote of the legally constituted body (in this case, the Assembly) to allocate monies from the general fund to the PAC is required by law. The funds may then be deposited in the PAC account. Then the PAC writes a check to the FA general fund for the balance due on the loan. In addition, the PAC is required to report the amount allocated on a per member basis. This the Assembly did at the at the March 6, 2008 , Assembly meeting. In addition, before repaying the loan, the SMCFA must calculate the number of members who have “opted out” (see question below) before determining the exact amount taken from the general fund and put into the PAC.

Q - Has the loan been repaid yet?

A - Not yet. The balance due on the loan is $35,000. The Assembly voted to allocate $35 per SMCFA member to repay the loan. (There are approximately 1,000 members of the FA.) The loan will not actually be repaid until members have had the opportunity to “opt out.”

Q - Will SMCFA dues be raised as a consequence of repaying the loan?

A – No. The loan will be repaid from existing general funds.

Q – What if an individual FA member objects to having $35 of his or her dues allocated from the general fund to the PAC?

A – That individual may fill out an “opt out” form and turn it in to the SMCFA office. The $35 of that member's dues money will remain in the general fund and will not be sent to the PAC. (We have asked our accountant to provide us with a boilerplate “opt out” form.) Dues will not be reduced.

Q – When will SMCFA members have the opportunity to “opt out” of the $35 allocation for purposes of repaying the loan?

A – There will be a thirty day window before the end of the spring semester.

Q – Does any of this apply to agency fee payers?

A – None of this applies to agency fee payers.

Q – Does this mean that for the next year, all SMCFA members will also be members of the PAC?

A – Yes, except those who “opt out.”

ALLOCATION OF GENERAL FUND MONEY TO PAC

Q – Why did the Assembly vote to hold a special election of the membership on the subject of an annual PAC allocation?

A – For political reasons. Legally, the Assembly itself has the authority to vote to establish such an allocation. However, the Assembly concurred with SMCFA leadership that a “yes” vote by the membership on this issue would be a powerful political statement by the SMC faculty that they support the FA continuing its successful strategy in Board elections.

Q – Why are SMCFA members being asked to support an annual PAC allocation?

A – To insure that the PAC has enough money to successfully influence the Board election. Past elections have shown that voluntary contributions and fund raisers do not adequately fund the PAC for purposes of being successful in the Board elections. An annual allocation is a change in strategy which would make it unnecessary for the Assembly having to make last minute loans to the PAC.

Q – If the SMCFA members vote in favor of an annual PAC allocation, will individual SMCFA members have the opportunity to “opt out” of the annual allocation?

A – Yes. There would be a form to fill out and return to the SMCFA office during a thirty day window just as with the procedure for the loan repayment.

Q – Will my dues be increased as a result of an annual allocation to the PAC?

A - No. The annual allocation will be made from existing general funds.

Q – Why do we need an annual PAC allocation? Isn't everything “all right” now that SMC has a new administration and a new Board?

A – Indeed the governance of SMC is better now than it was several years ago. This is in large part because of the efforts of the SMCFA in the Board elections. However, Board members and college presidents come and go. As stated earlier, the political goal of the SMCFA is to have the best possible Board. The best possible Board comes from the SMCFA being in the best political position during Board elections. The best political position comes from having access to the necessary funds to insure the election success of the Board candidates who a re endorsed by the FA. The most efficient way to raise the necessary funds is through an annual allocation from the general fund to the PAC.

Q – How will the amount of the annual allocation be determined?

A - The Representative Assembly has the authority to determine the annual amount as part of its budgeting process.

Q - Do other teacher's unions fund their PAC through annual allocations?

A – Yes. For example, statewide CTA used this method to defeat Gov. Schwartzenegger's anti-union and anti-public employee propositions in 2005. Also, our friends in the Los Angeles Guild have done this for 20 years and are very satisfied with their Board of Trustees.