Posts tagged financial reports
Teachers Pay Dues. Union Leadership Funds Activism.
July 20, 2026 // The Department of Labor proposed a remedy in 2019. Under the proposed rule, public-sector intermediate union bodies subordinate to national organizations would file detailed annual financial reports like those required of private-sector unions. That change would give teachers, parents, and taxpayers greater visibility into how dues are spent, where political spending occurs and how much money flows through organizations that frequently rely on taxpayer-funded facilities, payroll deduction systems, release time and administrative support. Some states have acted. Florida prohibits payroll deduction of union dues for teachers. Connecticut requires unions to provide members a copy of their financial reports, a requirement enforced inconsistently for years, until public scrutinyand litigation by the Fairness Center pushed the state Department of Labor to begin enforcing it.
Michael Watson: Improving Union Annual Reporting
July 3, 2025 // Especially following the 2010 Supreme Court decision in Citizens United v. FEC, which “collection” is funding what spending is important information for union members, and they deserve ready, single-site access. (Citizens United overturned a Taft-Hartley Act–derived ban on using union dues revenues for independent expenditures on behalf of candidates.) They should not need to cross-reference Federal Election Commission (FEC) reports and Labor Department reports to infer which pot of money paid for which spending. Instead, the Labor Department or Congress should revise the LM-2 form to require labor unions to specify the funding source, perhaps by adding a new schedule for expenditures to or by the “Separate Segregated Fund” (the technical name for the “second collection” pot of money) or by requiring specification of the source of funds for Schedule 16 and 17 expenditures related to politics and advocacy.