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EXCLUSIVE: National Stonewall Democrats faces $30,000 budget gap

Organization ‘will likely be forced to close our doors’ if it doesn’t raise money by Dec. 31

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Gay News, Washington Blade, Gay Democrats, National Stonewall Democrats, Jerame Davis

National Stonewall Democrats Executive Director Jerame Davis (Blade photo by Michael Key)

The Washington Blade has obtained an e-mail that indicates National Stonewall Democrats will likely shut down if it does not close a $30,000 budget gap by Dec. 31.

“It’s no secret that we’ve struggled with fundraising over the past few years, but today we are at a crossroads and we’re turning to you – our members and supporters,” wrote Jerame Davis, the group’s executive director, in an e-mail he will send to his organization’s e-mail list later on Wednesday. “As the year closes, we’re facing a budget deficit of over $30,000 and if we do not bridge this gap, we will likely be forced to close our doors.”

Davis told the Blade in an exclusive interview on Tuesday night the National Stonewall Democrats’ 2012 budget is between $130,000-$140,000. This figure includes up to $40,000 in organizational debt he inherited when he became executive director in Dec. 2011.

Internal Revenue Service documents indicate the organization reported $223,202 in revenue, while spending $253,133 (a deficit of $19,931) in 2011. These figures were $305,745 and $328,803 (a deficit of $23,058) in 2010 and $346,679 and $425,927 (a deficit of $79,248) in 2009 respectively.

Davis said fundraising picked up “quite a bit” at the beginning of the year – an April fundraiser in D.C. that honored gay Massachusetts Congressman Barney Frank, who founded National Stonewall Democrats in 1998, raised nearly $70,000. Davis said the organization was debt-free by the end of July, but it spent roughly $20,000 at the Democratic National Convention in Charlotte in September.

“In doing so we kind of depleted our reserves hoping that we would come out the other side with some fundraising momentum out of that,” he said. “Instead, quite the opposite happened. The campaigns started heating up so a lot of the fundraising started shifting towards President Obama and towards Tammy Baldwin and we took a hit fast and having no reserves coming out of the convention it kind of snowballed to where we are now.”

Organization received anonymous $100,000 donation in 2011

This is not the first time National Stonewall Democrats’ financial problems have threatened to shutter the organization.

The Blade reported in Feb. 2011 that an anonymous donor gave $100,000 to National Stonewall Democrats amid reports then-Executive Director Michael Mitchell did not effectively manage the group’s budget. Davis said the organization was “kind of back in the same boat when I took over” in Nov. 2011 after Mitchell stepped down.

“When I took over the organization, there was $1,800 in the bank and a boat load of debt,” he said. “We were facing eviction from our office; I mean there were all kinds of problems that I had to tackle. I had payroll to make two weeks after I took over and $1,800 in the bank and no donors and that was in November last year, the worst time for a 501c4 to be fundraising.”

Davis noted 2008 was his organization’s best year in terms of fundraising when its budget nearly topped $700,000. IRS records indicate National Stonewall Democrats reported $465,391 in revenue and $435,946 in expenses that year.

A changing political landscape, however, began to take its toll.

“We didn’t adapt to that, especially with the election of President Obama in 2008,” said Davis.

Melissa Sklarz, who co-chaired National Stonewall Democrats Board of Directors from 2009 through early 2011, noted then-President Bill Clinton had signed the ban on openly gay servicemembers and the Defense of Marriage Act into law in the years before Frank created the organization.

“It’s a very different Democratic party,” she told the Blade. “It’s a very different America. So maybe people feel they don’t need to go through national Stonewall. It’s mostly internal.”

The departure of Mitchell and two other executive directors before him has also had an adverse impact on the organization’s ability to raise money.

“That’s a big part of the problem, that kind of turnover, but also decisions that were made in that time, directions the organization took for its messaging, the directions that our programs took, some of them lost their bang so to speak,” said Davis. “We didn’t develop a lot of new programs that appeal to folks. Our fundraising took a hit as a result.”

The latest revelation about National Stonewall Democrats’ uncertain future comes less than a month after Obama, who endorsed marriage rights for same-sex couples in May, won re-election. Wisconsin Congressman Tammy Baldwin became the first openly gay U.S. senator-elect; while gay U.S. Reps. David Cicilline (D-R.I.) and Jared Polis (D-Colo.) won re-election. Voters in New York, California, Wisconsin and Arizona also elected openly gay and bisexual congressional candidates.

The Gertrude Stein Democratic Club in D.C., the Virginia Partisans Gay and Lesbian Democratic Club and the Barbara Gittings Delaware Stonewall Democrats are three of the more than 80 chapters and affiliates throughout the country.

Davis, who has remained National Stonewall Democrats’ only full-time staffer since shortly after he became the group’s executive director, said expenses have been cut to about $10,000 a month. He stressed his organization remains relevant.

“There are a number of state and local Democratic parties that aren’t on board with LGBT equality,” said Davis. “Some of whom are still outwardly hostile in some of the red states and more conservative states. And in a lot of ways its those areas where LGBT equality really hasn’t caught on; the places like Indiana, the places like Alabama, the places like Kentucky. That’s where we really need to do the work because they’re the ones holding us back. It’s the lack of a strong Democratic party, the lack of a strong pro-LGBT party that even the Democrats who are elected from these areas aren’t necessarily fully on board with full LGBT equality.”

He added grassroots organizing among Democrats in the aforementioned states is one of the many ways where “we excel.”

“Our clubs and our affiliates they have special relationships with their local elected leaders because they’re the ones that are out there knocking on doors and raising money and stuffing envelopes and making phone calls for these candidates,” said Davis. “On a national level we have to help coordinate that work, we have to help expand.”

National Stonewall Democrats Board Co-Chair Stephen Driscoll agreed.

“The stuff we do is grassroots, our mission has always been to make the Democratic Party better on our issues,” he said, while acknowledging what he described as ineffective organizational leadership before Davis’ tenure as a contributing factor to National Stonewall Democrats’ current financial situation. “There is no question that we have done that, especially in the national party and in many state orgs around the country we still have a lot of work to do in those diminishing number of states that are less than supportive on LGBT issues.”

“There’s still lots of work to be done in the national legislative arena,” added Sklarz. “National Stonewall is the perfect organization for that. HRC [the Human Rights Campaign] has its niche and Victory Fund has theirs and national Stonewall’s is to elect pro-equality Democrats. And there are lots of places, there is lots of room.”

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National

United Methodist Church removes 40-year ban on gay clergy

Delegates also voted for other LGBTQ-inclusive measures

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Underground Railroad, Black History Month, gay news, Washington Blade
Mount Zion United Methodist Church is the oldest African-American church in Washington. (Washington Blade photo by Michael Key)

The United Methodist Church on Wednesday removed a ban on gay clergy that was in place for more than 40 years, voting to also allow LGBTQ weddings and end prohibitions on the use of United Methodist funds to “promote acceptance of homosexuality.” 

Overturning the policy forbidding the church from ordaining “self-avowed practicing homosexuals” effectively formalized a practice that had caused an estimated quarter of U.S. congregations to leave the church.

The New York Times notes additional votes “affirming L.G.B.T.Q. inclusion in the church are expected before the meeting adjourns on Friday.” Wednesday’s measures were passed overwhelmingly and without debate. Delegates met in Charlotte, N.C.

According to the church’s General Council on Finance and Administration, there were 5,424,175 members in the U.S. in 2022 with an estimated global membership approaching 10 million.

The Times notes that other matters of business last week included a “regionalization” plan, which gave autonomy to different regions such that they can establish their own rules on matters including issues of sexuality — about which international factions are likelier to have more conservative views.

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Federal Government

Republican state AGs challenge Biden administration’s revised Title IX policies

New rules protect LGBTQ students from discrimination

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U.S. Secretary of Education Miguel Cardona (Screen capture: AP/YouTube)

Four Republicans state attorneys general have sued the Biden-Harris administration over the U.S. Department of Education’s new Title IX policies that were finalized April 19 and carry anti-discrimination protections for LGBTQ students in public schools.

The lawsuit filed on Tuesday, which is led by the attorneys general of Kentucky and Tennessee, follows a pair of legal challenges from nine Republican states on Monday — all contesting the administration’s interpretation that sex-based discrimination under the statute also covers that which is based on the victim’s sexual orientation or gender identity.

The administration also rolled back Trump-era rules governing how schools must respond to allegations of sexual harassment and sexual assault, which were widely perceived as biased in favor of the interests of those who are accused.

“The U.S. Department of Education has no authority to let boys into girls’ locker rooms,” Tennessee Attorney General Jonathan Skrmetti said in a statement. “In the decades since its adoption, Title IX has been universally understood to protect the privacy and safety of women in private spaces like locker rooms and bathrooms.”

“Florida is suing the Biden administration over its unlawful Title IX changes,” Florida Gov. Ron DeSantis wrote on social media. “Biden is abusing his constitutional authority to push an ideological agenda that harms women and girls and conflicts with the truth.”

After announcing the finalization of the department’s new rules, Education Secretary Miguel Cardona told reporters, “These regulations make it crystal clear that everyone can access schools that are safe, welcoming and that respect their rights.”

The new rule does not provide guidance on whether schools must allow transgender students to play on sports teams corresponding with their gender identity to comply with Title IX, a question that is addressed in a separate rule proposed by the agency in April.

LGBTQ and civil rights advocacy groups praised the changes. Lambda Legal issued a statement arguing the new rule “protects LGBTQ+ students from discrimination and other abuse,” adding that it “appropriately underscores that Title IX’s civil rights protections clearly cover LGBTQ+ students, as well as survivors and pregnant and parenting students across race and gender identity.”

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Federal Government

4th Circuit rules gender identity is a protected characteristic

Ruling a response to N.C., W.Va. legal challenges

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Lewis F. Powell Jr. Courthouse in Richmond, Va. (Photo courtesy of the U.S. Courts/GSA)

BY ERIN REED | The 4th U.S. Circuit Court of Appeals ruled Monday that transgender people are a protected class and that Medicaid bans on trans care are unconstitutional.

Furthermore, the court ruled that discriminating based on a diagnosis of gender dysphoria is discrimination based on gender identity and sex. The ruling is in response to lower court challenges against state laws and policies in North Carolina and West Virginia that prevent trans people on state plans or Medicaid from obtaining coverage for gender-affirming care; those lower courts found such exclusions unconstitutional.

In issuing the final ruling, the 4th Circuit declared that trans exclusions were “obviously discriminatory” and were “in violation of the equal protection clause” of the Constitution, upholding lower court rulings that barred the discriminatory exclusions.

The 4th Circuit ruling focused on two cases in states within its jurisdiction: North Carolina and West Virginia. In North Carolina, trans state employees who rely on the State Health Plan were unable to use it to obtain gender-affirming care for gender dysphoria diagnoses.

In West Virginia, a similar exclusion applied to those on the state’s Medicaid plan for surgeries related to a diagnosis of gender dysphoria. Both exclusions were overturned by lower courts, and both states appealed to the 4th Circuit.

Attorneys for the states had argued that the policies were not discriminatory because the exclusions for gender affirming care “apply to everyone, not just transgender people.” The majority of the court, however, struck down such a claim, pointing to several other cases where such arguments break down, such as same-sex marriage bans “applying to straight, gay, lesbian, and bisexual people equally,” even though straight people would be entirely unaffected by such bans.

Other cases cited included literacy tests, a tax on wearing kippot for Jewish people, and interracial marriage in Loving v. Virginia.

See this portion of the court analysis here:

4th Circuit rules against legal argument that trans treatment bans do not discriminate against trans people because ‘they apply to everyone.’

Of particular note in the majority opinion was a section on Geduldig v. Aiello that seemed laser-targeted toward an eventual U.S. Supreme Court decision on discriminatory policies targeting trans people. Geduldig v. Aiello, a 1974 ruling, determined that pregnancy discrimination is not inherently sex discrimination because it does not “classify on sex,” but rather, on pregnancy status.

Using similar arguments, the states claimed that gender affirming care exclusions did not classify or discriminate based on trans status or sex, but rather, on a diagnosis of gender dysphoria and treatments to alleviate that dysphoria.

The majority was unconvinced, ruling, “gender dysphoria is so intimately related to transgender status as to be virtually indistinguishable from it. The excluded treatments aim at addressing incongruity between sex assigned at birth and gender identity, the very heart of transgender status.” In doing so, the majority cited several cases, many from after Geduldig was decided.

Notably, Geduldig was cited in both the 6th and 11th Circuit decisions upholding gender affirming care bans in a handful of states.

The court also pointed to the potentially ridiculous conclusions that strict readings of what counts as proxy discrimination could lead to, such as if legislators attempted to use “XX chromosomes” and “XY chromosomes” to get around sex discrimination policies:

The 4th Circuit majority rebuts the state’s proxy discrimination argument.

Importantly, the court also rebutted recent arguments that Bostock applies only to “limited Title VII claims involving employers who fired” LGBTQ employees, and not to Title IX, which the Affordable Care Act’s anti-discrimination mandate references. The majority stated that this is not the case, and that there is “nothing in Bostock to suggest the holding was that narrow.”

Ultimately, the court ruled that the exclusions on trans care violate the Equal Protection Clause of the Constitution. The court also ruled that the West Virginia Medicaid Program violates the Medicaid Act and the anti-discrimination provisions of the Affordable Care Act.

Additionally, the court upheld the dismissal of anti-trans expert testimony for lacking relevant expertise. West Virginia and North Carolina must end trans care exclusions in line with earlier district court decisions.

The decision will likely have nationwide impacts on court cases in other districts. The case had become a major battleground for trans rights, with dozens of states filing amicus briefs in favor or against the protection of the equal process rights of trans people. Twenty-one Republican states filed an amicus brief in favor of denying trans people anti-discrimination protections in healthcare, and 17 Democratic states joined an amicus brief in support of the healthcare rights of trans individuals.

Many Republican states are defending anti-trans laws that discriminate against trans people by banning or limiting gender-affirming care. These laws could come under threat if the legal rationale used in this decision is adopted by other circuits. In the 4th Circuit’s jurisdiction, West Virginia and North Carolina already have gender-affirming care bans for trans youth in place, and South Carolina may consider a similar bill this week.

The decision could potentially be used as precedent to challenge all of those laws in the near future and to deter South Carolina’s bill from passing into law.

The decision is the latest in a web of legal battles concerning trans people. Earlier this month, the 4th Circuit also reversed a sports ban in West Virginia, ruling that Title IX protects trans student athletes. However, the Supreme Court recently narrowed a victory for trans healthcare from the 9th U.S. Circuit Court of Appeals and allowed Idaho to continue enforcing its ban on gender-affirming care for everyone except the two plaintiffs in the case.

Importantly, that decision was not about the constitutionality of gender-affirming care, but the limits of temporary injunctions in the early stages of a constitutional challenge to discriminatory state laws. It is likely that the Supreme Court will ultimately hear cases on this topic in the near future.

Celebrating the victory, Lambda Legal Counsel and Health Care Strategist Omar Gonzalez-Pagan said in a posted statement, “The court’s decision sends a clear message that gender-affirming care is critical medical care for transgender people and that denying it is harmful and unlawful … We hope this decision makes it clear to policy makers across the country that health care decisions belong to patients, their families, and their doctors, not to politicians.” 

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Erin Reed is a transgender woman (she/her pronouns) and researcher who tracks anti-LGBTQ+ legislation around the world and helps people become better advocates for their queer family, friends, colleagues, and community. Reed also is a social media consultant and public speaker.

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The preceding article was first published at Erin In The Morning and is republished with permission.

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