-Caveat Lector-

Tech Central Station

Public Shakedown Artist

By Radley Balko

03/03/2003


"Big business never pays a nickel in taxes, according to Ralph Nader,
who represents a big consumer organization that never pays a nickel in
taxes."

- Dave Barry

Crystal Lewis hadn't the slightest idea what "MOPIRG" was.  Each
semester, she says, the mysterious phrase was listed on her tuition bill
at Meramac Community College in St.  Louis, Missouri, and each semester
the school billed her six dollars.  Then she read the fine print.  "If
you opt not to support MOPIRG, please deduct this amount from your
payment," it said.

But her tuition bill gave no explanation of what exactly MOPIRG was.

In researching this piece, I got similar reactions from students at
colleges across the country.  PennPIRG, MASSPIRG, and CALPIRG - students
in Pennsylvania, Massachusetts, Colorado and California had been paying
small fees to all of these groups, and almost none of the students knew
at first what it was they were paying for.

If you're putting a kid or two through college, or putting yourself
through, there's a good chance you're donating to a PIRG, too.

And Ralph Nader would like to thank you for your support.

Yes, the same man who rails against corporate welfare - because it
coercively takes money from taxpayers and funnels it to corporations -
has set up a rather ingenious, if underhanded and manipulative, way of
coercively taking money from college kids - and funneling it to Ralph
Nader.

The PIRG scam is short for "Public Interest Research Group," and there
are well over a hundred chapters of the organization spread out across
the country.  The scams vary from campus to campus, but it basically
works like this:

Each time your kid registers for classes, the local PIRG chapter has
arranged with the school to tack a fee on to his/her tuition.  On most
every campus, the PIRG chapter has made attempts to make this
"contribution" as secretive and misleading as possible.  Just how
secretive and manipulative the method depends on how much resistance
each chapter has met in trying to get the scheme implemented.  At most
schools, they first attempt to make the fee both mandatory and
nonrefundable.  If that doesn't work, they lobby for as underhanded and
sneaky a scheme as the school will allow.

This has been going on for twenty-five years.

Eight years ago, I was sitting in my fraternity cafeteria at Indiana
University when representatives of the then-startup INPIRG group entered
with a petition.  They were starting a new student group on campus, they
told us, and they'd like our support.  We were assured that the group
was one hundred percent apolitical.  It was merely a group that would
advocate for Indiana University students.  They needed our signatures,
they said, to get the organization up and running.

What they didn't tell us was that our signatures were in effect an
endorsement of a "reverse check" system, whereby every single Indiana
University student (and there are about 40,000 of them) would
automatically donate three dollars to INPIRG each semester, unless he or
she specifically knew to "uncheck" a box on the computer screen giving
authorization for the contribution.

The INPIRG method has since changed.  Today, the group solicits
signatures from incoming freshmen - again under the "apolitical" rubric
- who, once they've signed, will then contribute each semester for the
remainder of their college careers at Indiana.  Students say it's almost
impossible to remove your name from the list once you've signed.

But at least students at Indiana have the option of not contributing.

On about 1/3 of the state college campuses in New York State, a
student's PIRG contribution is mandatory and nonrefundable.  The
University of Wisconsin and Oregon University also require mandatory,
nonrefundable contributions to PIRG.

You want to go to one of these schools?  You pony up to Ralph Nader.

At other schools, such as Trinity College in Connecticut, students not
interested in supporting the local PIRG are required to go a Bursar's
office or a student activities office, fill out a form, then take the
paperwork to a campus PIRG officer to get a refund.  That's quite a bit
a work for three or five or eight dollars - and that's assuming the
student ever notices the charge on his tuition statement to begin with.
Not surprisingly, most PIRG chapters don't go to great effort to
publicize the refund option.  They rely on college student indolence,
and they're making a killing.

What's worse is that most of the time, the money these chapters shake
out of college students doesn't even stay on the campus where it's
generated.  This is particularly true in the Northeast.  At many New
England schools, most or even all of the money coerced from college
students goes directly to the state PIRG chapters, where it's used to
pay political lawyers and statehouse lobbyists, or is used as "seed
money" for further fundraising efforts.  And about 10% of
campus-collected money goes to the national chapter, USPIRG.

The irony in all of this is that the PIRGs disguise their scam under the
"free speech" mantra.  The USPIRG site makes the incredulous claim that
forcing students to pay for causes they don't support is protected by
the First Amendment.  Yet this same organization, on it's campaign
finance reform website, claims that voluntary contributions to political
candidates isn't protected.  Go figure.

PIRG chapters claim that their funding schemes are protected under the
recent Southworth v.  University of Wisconsin decision, decided by the
Supreme Court last year.  But Southworth says only that political
organizations can receive student dues as disbursed through a general
fund.  It says nothing about reverse checkoffs or mandatory fees
earmarked for political causes.  In fact, the opinion stresses the
importance of "viewpoint neutrality" in mandating student fees.  That
is, organizations from all ends of the political spectrum ought to have
a crack at the funds.  Despite their claims of political agnosticism,
few could make the claim that PIRG's policy positions are "viewpoint
neutral."

Craig Rucker works for the Committee For A Constructive Tomorrow, an
advocacy group that helps grassroots organizers oppose environmental
extremists.  Rucker estimates that PIRG chapters on at least 70 college
campuses have some sort of funding scheme that's either mandatory, or
puts the onus on the student to pursue a refund.

PIRG chapters are operational on at least 140 campuses nationwide, and
if not funded by mandatory fees, most either employ deceptive sign-up
campaigns similar to the one used at Indiana, or lobby usually
left-leaning student government bodies to grant them disbursement from
more general "activities funds."

Like most of Ralph Nader's puppet and satellite organizations, state
PIRGS are notoriously reluctant to divulge financial information (more
on that below), so an exact figure on just how much they're collecting
is tough to compute.  Nevertheless, Rucker estimates that PIRG chapters
nationally manage to collect somewhere between $10 and $20 million
dollars from college students to advocate for Ralph Nader's causes.

So just what are these "apolitical," "student-oriented" issues PIRG
chapters advocate for?

Well, the USPIRG's 2001 annual report demands a moratorium on drilling
for oil in ANWR.  It criticizes the Bush administration for weakening
forest protections.  It also advocates for tougher CAFE standards, and
it criticizes the McCain-Feingold campaign finance reform legislation
for "not going far enough" toward publicly-financed elections.

If these issues are "apolitical," one wonders what PIRG considers
"partisan."

The practice of forcing or tricking college students into financing
causes they might not otherwise support seems particularly sleazy when
coming from someone like Nader, a "citizen activist" who has always
claimed to be on the side of the "little guy" - a public advocate who
rails against the injustice of, for example, ATM fees.

Yes, it's sleazy and it's hypocritical, but it's also typical.  Nader's
public advocacy has always been at odds with his private business
practices.

In the 1970's, for example, the labor-loving Nader busted up an attempt
by workers at one of his organizations to unionize - an effort
instigated by Nader's management style.  The website Real Change quotes
former Nader lieutenant Jim Turner:

"We spent a hundred years trying to clean sweatshops out of our system
and what happens?  Along comes the first major reformer of any impact,
and he starts doing the same goddamned thing.  ...  My wife had to tell
Ralph once to stop phoning after midnight."

Those fed up with Nader's tactics have found that taking on Nader, while
difficult, is not a hopeless fight.  Regents of the state university
systems in California and Montana have shot down PIRG requests for
mandatory support from student fees (though California schools now use
the freshman-pledge approach used at Indiana).  And several years ago,
the efforts of student activists and local legislators nixed a mandatory
scheme at the University of Texas.  Rucker says his organization
regularly works with local politicians and activists to fight the
schemes at the state level, and that they're having some success.

The problem, mainly, is awareness.  Campus PIRG chapters can implement
their fee scams through petition drives, through student government
organizations, or through university administrators, and they generally
opt for the method they feel will provide the least amount of
resistance.  Once instituted, the fees then understandably get lost in
the line item listings of various student athletic, health, housing,
laboratory and various other academic fees.

So parents rarely notice them.  And neither do students.

And even when they do, the charges are generally listed as they were on
Crystal Lewis' tuition bill - ambiguously, cryptically, and without a
satisfactory explanation.  Many times, school administrators don't even
know what they're for.

And so students continue to unknowingly fork money over to Green
causes.  And universities continue to look the other way.  And all the
while, Ralph Nader and his nationwide army of advocates go on collecting
millions - each three, five, or eight-dollar fee at a time.

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