AWAKENING DEMOCRACY

National Priorities Project 2004

Annual Report
The cover photograph is of a mural painted by the pregnant and parenting teen students at The Care Center in Holyoke, Massachusetts.
The mural was inspired by NPP information about their community. Photograph taken by Jason Threlfall.

The information provided in this Annual Report is available at www.nationalpriorities.org

The National Priorities
Project offers citizens
and community groups
tools and resources
to shape federal budget
and policy priorities
that promote social
and economic justice.
A MESSAGE FROM THE E XECUTIVE DIRECTOR

IF YOU WANT JUSTICE, WORK FOR PEACE

Dear Friends,

In 2004 we began a multi-year effort to inspire community groups and the public
to become more involved in the national debate on how to make the U.S. and the
world more secure. We firmly believe that in a democracy no public policy should
be left exclusively to "experts."

It may seem unusual for an organization that calls for more spending in our
communities to target the international. But if we don't get a handle on federal
national security spending, we'll have little to spend on our communities. Since
9/11 we’ve increased total spending on “security” issues dramatically, compared
to programs that strengthen communities. We now spend four times on “security”
(military, war, homeland security and foreign affairs) what we spend on federal
education, housing, environmental protection and job training combined.

Much of our new work originates from collaborations with security policy analysts,
who divide security into three budget categories: offensive (military and war);
defensive (homeland security) and preventive (foreign affairs). Nearly 86 percent
of our security money—and 83 percent of the increase since 9/11—has gone to
military and war. In fact, our military budget is as large as the military budgets of
all the other countries in the world combined. Only 6 percent of the security budget
goes to homeland security and 8 percent to foreign affairs.

In 2004 The National Priorities Project concentrated on the domestic consequences

of a military approach, looking at the trade-offs between military and social
spending, and calculating the enormous local costs (financial and human) of the
Iraq War. One state-by-state analysis, done in consultation with several veterans'
organizations, showed that despite the huge amount of money spent on the war, the
needs of our veterans continue to be under-funded.

We began to discuss how our security dollar might be spent more wisely. Working
with a number of peace organizations and national security experts, we started
developing popular education materials around "smart security." We illustrated, for
example, how it is much wiser (and less expensive!) to buy up old Soviet nuclear
weapons than it is to build new ones.

We also laid the groundwork for a new part of our website that will focus on how
our federal dollars are spent abroad. Security experts list failed governments,
poverty and repressive regimes as root causes of terrorism. Our information will
help the public understand how the spending of our federal dollars perpetuate or
address these problems.

NPP will continue to look at the local impacts of social and tax policy. But until
activists and the public rethink our foreign and military policy, we'll never have
enough money to adequately address the pressing needs in our communities.

There's an old truism that goes: "if you want peace, fight for justice." It works the
other way as well: if you want justice, work for peace.

Please share this Annual Report and NPP information with colleagues and friends.
Let's make change in the world now. There's no better time.

Greg Speeter
Executive Director
AWAKENING DEMOCRACY
he election of 2004 was undoubtedly the major event in this country and in a
T tight election, 51% to 48%, President Bush was returned to office. 120 million
Americans (60% of eligible voters) turned out to vote—the highest voter turnout
since 1968. And, for the first time, a majority of all young adults between 18 and
29 came out to the polls (51.6%).

To a large degree, national and global issues brought citizens to the polls. The
presidential candidates actually debated such issues as the war in Iraq, terrorism, and
our role in the world. How do we protect America in the wake of terrorist threats?
How do we build peace and stability and not wage continual war? How do we
strengthen our society at home and provide jobs, education, a clean environment, and
healthcare for all? These vital issues will not go away as the Iraq War, the struggle to
control energy resources and the interdependence of nations intensifies in the future.

Under the radar of the election, the year 2004 had our country traveling the same
budget road it has been on for the last few years: ongoing war with mounting costs,
a growing deficit ($413 billion in FY04) and cuts to vital community services (such
as 8% to clean water, 5% to community development, and 5% to state and local law
enforcement). On the revenue side, the Bush Administration and Congress passed
more tax breaks for corporations ($210 billion over ten years) and proposed more
breaks for the wealthy. Contrary to the arguments used to justify them, these
economic policies have not spurred job creation or economic recovery.

Yet, there were hopeful signs. Due to budget pressures from the deficit, funds were
eliminated for new nuclear weapons and funds were increased for crucial nuclear
non-proliferation programs. National veterans groups were able to increase funds
during wartime for veterans' benefits. At the state level, activists won major victories
in passing living-wage laws in Florida and Nevada. Issues like these will continue
to engage people and challenge lawmakers over the next few years. So will the
opportunity for national debates on budget priorities.
At the National Priorities Project, we played a strong role in awakening the American
citizenry during this election year. Our local data on national and international issues was
delivered to the doorsteps of every community by "get out the vote" campaigns, national
coalitions, grassroots groups, the media and our website. NPP's goal is to engage Americans
in crafting the budget, not just during a presidential election year, but every day of every
year. What is a true national security? What role should our country play in the world?
What makes a society just and free for all? Over the last few years, NPP has provided
more than critiques, offering alternative solutions to these national questions. ■

DOCUMENTING THE COST, STATE BY STATE, TOWN BY TOWN*

MILITARY SPENDING—IS THERE A BETTER WAY?

n 2004, NPP expanded its reach as the source for local information on the financial costs
I of the war in Iraq by highlighting its human costs. In May, when the Bush Administration
requested another $25 billion, NPP provided the war’s cost to states and more than
250 cities and counties.Taxpayers in Detroit, for
example, spent $291,731,250, while taxpayers in
San Diego county spent $1,605,827,150. We
illustrated how this money could have been used to
provide better healthcare, educational opportunities, THE COSTS OF WAR IN FLORIDA:
public safety, port safety and homes with renewable
• 44 soldiers killed
energy.
• 407 wounded
NPP was able to show state-by-state the number of • 3,809 Reservists and National
Guard troops on active duty
soldiers killed and wounded and the number of
• $7.8 billion (or $4 billion more than
reservists and National Guard troops on active duty. what the state received in funds
And we focused on the lack of funding for veterans for No Child Left Behind, EPA
benefits at a time when more soldiers were becom- programs and Community
ing disabled veterans. ■ (See sidebar this page.) Development Block Grants
combined)
• Another $2.6 billion more for each
year the U.S. remains beyond 2004
* The data presented in the 2004 Annual Report is for 2004
unless otherwise noted. Up-to-date information is regularly
posted on the N PP website at www.nationalpriorities.org
VETERANS BENEFITS
The Bush Administration's proposed spending on
discretionary veterans benefits for fiscal year 2005
amounted to $29.8 billion, $3.8 billion below the
amount needed. The budget passed by Congress was
for $31 billion and still left a gap of $2.6 billion.
Vets continue to encounter long delays for medical
appointments and disability compensation.

NPP's state-by-state analysis (see Texas below) was

used by all the major veterans organizations.

TEXAS’ VETS
Veterans, total: 1,679,056
Veterans, disabled: 202,678
Wounded in action during Iraq War: 456
Active Reservists & National Guard troops: 7,296
 COSTS OF IRAQ WAR TO CITI ES
(through 2004)

Portland, ME $21,234,700
Salt Lake City $46,965,200
CURRENT PENTAGON Salem, OR $50,528,950
SPENDING AND Des Moines $71,564,250
Nashville $245,310,400
ALTERNATIVES
Columbus, OH $332,103,150
Phoenix $574,293,600
he Pentagon budget continued to climb last
T year to $421 billion, a 5% hike after inflation,
and does not include the war in Iraq or spending in
Philadelphia
New York City
$592,975,550
$4,828,986,350

Afghanistan (which totals about $7.8 billion a

month). The military budget is seven times as much
money as homeland and all other non-military
security combined.

National Priorities Project, working with our colleagues from peace groups and think
tanks, has raised the concept of "smart security." The main elements of smart security
include reducing nuclear weapons and other Cold War weapons, increasing money to
stop the proliferation of nuclear weapons, and providing adequate security for our ports,
water supplies, and nuclear power plants.

A large part of smart security is redefining the role of the United States in the world.
We expanded our multi-year project to involve the public in understanding how our
foreign policy drives our military budget. NPP continued its collaboration with the
Security Policy Working Group, which is made up of experts and non-governmental
organizations (NGOs). The Security Policy Working Group aims to reshape the national
debate on what is true security in a post-9/11 world. As a member, NPP participated in
the second annual DC Roundtable with media, congressional staff and policy experts,
and held media conferences on the human and financial costs of the war with the
Center for Defense Information. Finally, we have increased our resources so that we are
positioned in 2005 to track how our federal tax dollars are spent abroad, not just in Iraq
and Afghanistan, but every country in the world. ■
AT THE STATE LEVEL, NPP DATABASE
MAKES IMPACT

he NPP Database, with information on needs and federal spending on such

T issues as energy, military spending and hunger, continues to be a vital resource
for activists. The Trade-offs feature was expanded in 2004 to better serve national
organizations, the media and activists. The Trade-offs feature allows people to click
on a state, then identify a budget item and see what else those federal dollars could
buy in the state. (See Sidebar, next page.) New data such as public safety officers,
inspectors of port containers, new elementary schools and university scholarships
were provided as alternatives to military spending, and cited by several major
newspapers, from The Boston Globe to the San Francisco Examiner.

NPP expanded some of its issue areas as well. Examples include how much the
federal government is spending on low-income heating assistance, "reading first
programs," the number of people in poverty, and people covered by government
health insurance.

COMING SOON: DOWN TO THE COUNTY LEVEL

NPP increased its research staff to lay the foundation for bringing the NPP
Database from the state level down to the county level. By March 2005,
county-level information for poverty, housing, education, health and military
spending will be accessible for most of the 3,142 counties in the U.S. All of this
data will be available to any citizen with access to the Internet.

NEW USERS
As the word spread about the NPP Database as a resource, the number of registered
users doubled, to more than 3,000 activists and organizations. A high school in Ohio
has even begun to use the Database as an educational tool. We expect this trend to
continue in 2005 as we expand the data, make it easier to use and increase our
promotional efforts. ■
TRADE-OFFS FOR TAXPAYERS
IN COLORADO
Taxpayers in Colorado will pay $164.1 million for
ballistic missile defense in FY2005 as proposed by
the President's budget. For the same amount of
money, the following could have been provided:

23,610 Head Start places for children

or
73,286 children receiving health care
or
40,826 scholarships for university students that
covers tuition and fees
OTHER NPP HIGHLIGHTS

TAX DAY Our tax day release provided local data for all 50 states and more than
160 cities. The information was used by national and local groups in organizing,
included in their newsletters and e-mail and covered extensively by the media, such
as CNN's use of NPP's Tax Day chart.

ENVIRONMENT NPP released a factsheet on the environment during the summer

when the public spends the most time outdoors. It was prepared in consultation with
the League of Conservation Voters and focused
on the threat to air, water and health, with infor-
mation for each state. It was used by the Sierra
Club, resulting in media coverage of the threats
to water quality by urban sprawl outside of
Chicago.

EDUCATION Our focus on education showed,

state by state, how different educational areas
were underfunded by Congress and highlighted
proposed budget cuts for education by the White
House over the next five years. The release was
used by national groups such as the Coalition on
Human Needs and the Children's Defense Fund,
and shared with Congressional budget staff by
the Campaign for America's Future.

ENERGY In early 2004, in time for the

reopening of the debate on energy, NPP released
its Energy Quick Report, a one-page factsheet
filled with telling energy numbers for each state, such as the amount spent on fossil
fuels research as compared to renewable energy sources. The Quick Report put state
numbers in a national context, telling the story of how federal energy policy gets
played out with taxpayer dollars. ■
TURNING INFORMATION INTO ACTION

N PP ensures that its information is going to be used by national organizations and

local groups before it is researched and written. We communicate frequently with our
national collaborators and local partners to find out what is needed in the field and who
can use it. Below are examples of how NPP data was used.

NATIONAL AND LOCAL ORGANIZATIONS National and local peace and veteran's
organizations used NPP data as handouts, in demonstrations on Tax Day, at conferences,
in interviews with the media and meetings with candidates and elected officials. The
most active groups included Veterans for Common Sense, Women's Agenda for New
Directions, Peace Action, and True Majority,
who used our data in e-mail actions to 300,000
activists. We worked closely with the Center
for American Progress, a nonpartisan research
and educational institute. They provide daily
news briefings to 65,000 activists and used our
materials on a number of occasions. We also
collaborated with them on an interactive map of
the costs of the Iraq War to the states.

MEDIA NPP received a grant from the

Carnegie Foundation for $25,000 to develop
a multi-year promotion and marketing strategy
for its website and database. We utilized consultants to develop and carry out a media
plan for 2004. It has already made an impact on the design and branding of our materials
and in targeted outreach to the media. Our releases were picked up by such international
and national media as CNN and CNN Financial News, the Guardian (Great Britain),
United Press International, The Boston Globe, Sun-Sentinel (Florida) and In These
Times, and by radio stations across the country.
DOCUMENTARY FILMMAKER
NPP provided research and technical
assistance to the Media Education
Foundation for its documentary film,
Hijacking Catastrophe. The film focuses
on how neo-conservatives in the Bush
Administration have used the fear and
trauma of 9/11 to win the support of the
American public for two wars. NPP staff
was interviewed in the film and
participated in its crafting and distribution.
Hijacking Catastrophe played in movie
theaters in 11 states, was distributed to almost 1,000 libraries in 16 states, sold more
than 15,000 copies and was reviewed by The New York Times, The Washington Post,
San Francisco Chronicle and other media.

THOUSANDS OF ACTIVISTS NPP presented at the National Association for the

Advancement of Colored People (NAACP) Convention. The workshop on voter
empowerment reached more than 600 participants. NPP also presented at the
Association of Community Organizations for Reform Now (ACORN) in their
national leadership-training program, and a gathering of hundreds of canvassers for
Clean Water Action. NPP participated in a strategic planning meeting for the Center
for Third World Organizing on how to connect global and national issues to local
organizing. NPP presented at the National Summit on PetroPolitics, attended by
labor, the Global Justice movement, environmental organizers, students and leaders
from communities of color and faith, to talk about how our nation's dependence on
oil impacts our lives, our economy, our foreign policy, and the environment.

INTERNET NPP expanded its website, with more information on military spending,
poverty and education, and invited to take over the website costofwar.com. In 2004,
more than 1,000 visitors came to the NPP website every day. ■
NPP SUPPORTERS

FOUNDATIONS
Foundation support comprises about 80%
of NPP's revenue. We are appreciative that
the following foundations partnered with us
in 2004:

Colombe Foundation

Community Foundation of Western Massachusetts

Educational Foundation of America

Ettinger Foundation

Global Bridge Foundation

Harold & Rita Divine Foundation

Proteus Fund/Ford Foundation

Rockefeller Brothers Fund

Rockefeller Family Fund

Stewart R. Mott Charitable Trust

Tides Foundation/Connect US Fund

Wellspring Fund/Peace Development Fund

DONORS
Individuals who share our belief that a democracy
depends on an educated citizenry have been vital
in expanding the work of the National Priorities
Project. We thank all of our donors for their
generosity and support in 2004.

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Robert & Jan Winston
Judy Wolf & Justin David IN MEMORY OF:
Michael & Sara Wolff Norman and Eleanor Cousins
Tom & Peg Wolff Yetta Frazer
Hayley Wood & Mark Roessler Audrey Greenwald
Al Woodhull John Heisler
Emilie Woodward Charlatte P. Henken
Cate Woolner Louis and Elizabeth Jartz
Robin Yerkes Bernard Katz
Felice Yeskel & Felicia Mednick Andy Nichols
Elise Young John Quinn
Amy Zeldes Ann I. Siano
Nick Zeo Sylvia Beigel Young
Robert Zevin
Andrea & Robert Zucker IN-KIND SERVICES
PROVIDED BY:
COMMEMORATIVE Fazzi Associates
GIFTS HandEyeDesign
Gifts made in memory or honor of Jason Threlfall Photography
others provide an opportunity to Nick Warren, Ergo Center at
pay tribute to special people or UConn Health Center
organizations. During 2004, gifts Twenty Six Letters
were received in memory or Zoestoes Multimedia
honor of the following persons
and organizations whom the
National Priorities Project
recognizes for their significance
to its supporters
BOARD OF D IRECTORS CONSULTANTS
Michael Kane* and Sue Thrasher, Co-Chairs Blue Fox, Inc.
Peter Greenwald, Treasurer Nancy Schwartz and Company
Hal Fales, Clerk Northern Star Communications
Laurie Herrick Rainmaker Consulting
Jen Kern Doreen St. John, Graphic Design
George Levinger
Stephanie Luce DEVELOPMENT COMMITTEE
Bill Strickland Dennis Bidwell
Michael Wolff Carolyn Cushing
Laurie Herrick
STAFF Alice Hodgdon
Greg Speeter Robert Lowry
Executive Director Jamie Williamson

Anita Dancs VOLUNTEERS

Research Director
Bette Elsden
Mollie Fox
Kristine Elinevsky
Doug Fulton
Administrative Coordinator
Alice Hodgdon
John Laux
Philip Korman
Development Director Jim Westrich

Paul Newlin* INTERNS

Information Technology Director Marena Bennett-Smith
Leila Cohan
Pamela Schwartz Tia Fattaruso
Outreach Director Julie Gimbrone
Michael Romy Greer
Suzanne Smith Kari Hewitt
Database Manager Bethany Lowery
Brenda Thomas
Dennis West
Technology Coordinator
* NPP gratefully acknowledges these board and
staff members who departed the organization in
2004 for their years of service to NPP.
FINANCIAL SUMMARY

Condensed Financial Statements For the Year Ended December 31, 2004
With Comparative Totals for 2003

ASSETS 2004 2003

Cash $240,395 $133,200
Grant receivable 75,000 37,500
Pledges receivable 134,766 27,760
restricted to use in future periods
Prepaid expenses 3,590 2,191
Website, at cost 79,923 97,221
net of accumulated depreciation
Equipment, at cost 5,574 7,395
net of accumulated depreciation

TOTAL ASSETS $539,248 $305,267

LIABILITIES
Accounts payable $ 8,756 $ 2,724
Accrued vacation 8,409 7,203
Payroll taxes & fringe benefits 819 564
Deferred grant revenues 167,886 104,400
TOTAL LIABILITIES $185,870 $114,891

TOTAL NET ASSETS $353,378 $190,376

TOTAL LIABILITIES AND NET ASSETS $539,248 $305,267

REVENUES
Grants $377,714 $279,918
Donations 207,856 125,687
In-kind donations ---- 10,398
Interest 2,073 1,296
TOTAL REVE NUE AND S UPPORT $587,643 $417,299

EXPENSES
Program $300,881 224,658
Administration 54,106 55,371
Development 69,654 78,268
TOTAL EXPENSES $424,641 $358,297

CHANGE IN NET ASSETS $163,002 $ 59,002

NET ASSETS, Beginning of the Year $190,376 $131,374
NET ASSETS, End of the Year $353,378 $190,376

Our complete audited statements available upon request.

National Priorities Project
17 New South Street, Suite 302
Northampton, MA 01060
413-584-9556
info@nationalpriorities.org
www.nationalpriorities.org