Purpose of Political Action Committees:

Generally the purpose behind forming political action committees is to give employee associations political clout needed to promote their interests and ideas to whatever legislative body controls their employee wages and benefits.

Second, with association member's right to dispute, challenge, and demand refund of the portion of their dues paid by the association for political activities they disagree with, forming a separate political action committee, with voluntary contributions, avoids such disputes between members. Under the First Amendment union members have the right to object to the use of their money for political or ideological purposes which they oppose. (San Jose Teacher's Association v. Superior Court 38 Cal.3d 839.)

Third, under state and federal tax law, candidate related expenditures made directly by an employee association triggers potential tax liability to the association depending on their assets and expenditures. Directing money into a separate political action committee account avoids this tax liability.

The bottom line is a PAC fund creates power for the association in the community. When a city council, county board of supervisors, or school board knows the association has thousands of dollars to spend on the next election, they think twice before making decisions which detrimentally impact the association.