State Can’t Legally Lend Executives To Charity Ruling: United Way ‘Loans’ Use Public Funds For Private Use

The state can’t legally lend its executives to United Way, even for charitable fund-raising drives, an attorney general’s opinion says.

Attorney General Alan Lance on Thursday said the program amounts to using public funds for private purposes.

Gov. Phil Batt immediately sent a memo to state agencies discontinuing the practice. United Way work ended last month for the 1995 campaign.

“Although the United Way serves a public good by helping with public relief which might otherwise fall on the government itself, this purpose is not sufficient,” Lance said in a release. “Donating the salaries of those executives primarily aids the United Way and gives it favored status and preferential treatment with only incidental public benefit.

“In most cases, such donations to a private charity are not an appropriate use of the taxpayers’ money,” the opinion said.

It was prepared at the request of two Republican legislators, Rep. Tom Dorr of Post Falls and Sen. Gordon Crow of Hayden Lake.

Under former Gov. Cecil Andrus, the state took part in United Way’s “loaned executive” program. Two or three senior personnel from state agencies were “loaned” to United Way to help organize the state’s role in the fund-raising campaign. The employees were placed on administrative leave with full pay and benefits for about eight weeks while assisting United Way.

Major corporations also lend personnel to help the fund drive.

Batt questioned the practice when he took office early this year, although he allowed state employees to work in the United Way effort this year.

No matter how praiseworthy the program, the attorney general’s opinion said, state expenditures must be directly related to the function of government.

“Our government has a duty to promote goodwill among its citizens and employees. However, under the constitution, the state of Idaho also has an obligation to taxpayers to limit expenditures of public funds to the specific functions and purposes of government,” Lance said.

On a related subject, Lance said under some circumstances the state can share state facilities and employees with foundations affiliated with state agencies.

Those arrangements must serve a public purpose, such as raising money for a college or university, and be directly related to government functions, the opinion said.