The Democratic Socialists of America (DSA), affiliated with Rep. Alexandria Ocasio-Cortez and other congressional members, is facing a severe financial crisis, leading to proposed staff-related expense cuts and potential layoffs.
The organization’s leaders are grappling with a significant deficit, prompting the need for substantial budget cuts.
The situation has also led to internal disagreements, with one founding member leaving over the group’s response to a recent event.
“We will cut $500,000 from staff-related expenses,” a proposal read. “We will first ask for volunteers from both director-level and bargaining unit staff to have their position cut and receive severance.”
“If necessary, we will then explore initiating lay-offs according to the DSA union’s contract,” DSA members wrote.
“DSA is in a financial crisis and staff-related costs account for 58% of our total expenditures and 72% of our projected income,” they added.
“The current deficit will force us to make 7-figure budget cuts. This will require us to make painful decisions that will impact all levels of the organization.… Given our current financial state, we do not believe we can have a healthy, democratic, and effective organization while spending the amount we currently do on staff.”
“If necessary, we will then explore initiating lay-offs according to the DSA union’s contract,” the proposal read. “Be it resolved: The Personnel Committee will be responsible for determining the quantity and type of positions to be eligible for buy-out or layoff, and they will assist with logistics and a staff transition plan.”
“I left to protest the DSA leadership’s politically and morally bankrupt response to the horrific Hamas October 7 anti-Jewish pogrom that took the lives of 1,400 people, mostly civilians, and saw over 200 hostages carried off to Gaza, both groups of victims including children and infants,” DSA founding member Maurice Isserman wrote.
“Its statement on October 7 made no mention—let alone offering any criticism—of Hamas, declaring instead, ‘Today’s events are a direct result of Israel’s apartheid regime—a regime that receives billions in funding from the United States,'” he said.
Notably, other Democrat lawmakers, including Rashida Tlaib, Cori Bush, and Greg Casar, are also part of the DSA.
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