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Greg Sindelar, Chief Executive Officer | Texas Public Policy Foundation website

Public Sector Unions Receiving Tax Dollars Violates Texas Constitution’s “Gift Clause”

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Attorneys from the Texas Public Policy Foundation and the Goldwater Institute presented arguments before the Supreme Court of Texas in Borgelt v. Austin Firefighters Association, addressing the constitutionality of public sector labor unions' "release time" scheme. This scheme requires taxpayers to fund union organizers' salaries and activities, which was argued to violate the Texas Constitution's "gift clause."

Lead attorney Robert Henneke from TPPF highlighted, "The Texas Constitution’s ‘gift clause’ prohibits municipalities from granting public money to private individuals or associations without serving a public purpose, which is exactly what is happening here."

Jon Riches, lead attorney from the Goldwater Institute, further explained, "The ‘gift clause’ requires that public payments to private entities be for a public purpose, that the government maintain control over its expenditures, and that the government receive fair value for taxpayers. Release time meets none of these requirements because it’s provided as a blank check for union bosses to use whenever and however they see fit."

The case sheds light on the financial burden placed on taxpayers due to the release time scheme, where government employees engage in political activities, negotiate benefits, and attend union events while receiving full government pay. The argument made by the attorneys underscores the violation of the "gift clause" and the lack of public purpose in such arrangements.

Both the Texas Public Policy Foundation and the Goldwater Institute are committed to defending liberty and advocating for constitutional principles. TPPF aims to protect and promote liberty, opportunity, and personal responsibility, while the Goldwater Institute works to empower Americans to live freer lives through research and litigation efforts.

The hearing before the Supreme Court of Texas serves as a pivotal moment in the legal battle over public sector unions' use of tax dollars, raising important questions about the allocation of public funds and adherence to constitutional principles.

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