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                        35                 th
                                           A N N I V E R S A R Y


      Annual Report
                      Table of Contents
                      Mission Statement ................................................................................................................1

                      Message from the President and General Counsel .................................2

                      Message from the Chair ..................................................................................................3

                      LEGAL PROGRAMS .........................................................................................................4
                         Education ........................................................................................................................4
                         Immigrants’ Rights.................................................................................................7
                         Political Access...........................................................................................................8
                         Public Resource Equity.......................................................................................9
                         Access to Justice .....................................................................................................10

                      COMMUNITY EDUCATION
                      AND LEADERSHIP DEVELOPMENT ...........................................................11
                         Parent School Partnership (PSP) program ......................................11
                         Immigrant Higher Education Outreach program ....................12

                      Law School Scholarship Program........................................................................13
“Folklorico Dancer”
                      Contributing to MALDEF ..........................................................................................14

                      MALDEF Staff 2002-2003 ............................................................................................16

                      MALDEF Board of Directors ...................................................................................18

                      Financial Statements .......................................................................................................19

                      Acknowledgements ................................................................................inside cover
In Memory of
This 35th Anniversary Annual Report is dedicated to
MALDEF Founder Pete Tijerina.

When Pete Tijerina founded MALDEF in 1968,
his overall goal was that of providing equal
opportunities for Mexican Americans. His was
a simple, pragmatic vision:
    “Nobody’s going to guarantee that you’re going
    to make every single member of the [Latino]
    community an affluent and educated person,”
    he once said. “All you can do is provide the
    opportunity or see that the opportunity is not
    denied. If you’ve done that, you’ve done

Pete Tijerina set in motion a quest that remains as
relevant today as it did 35 years ago. We dedicate
this annual report to his memory.

Mission Statement
MALDEF is a national non-profit organization whose           seeks to achieve these objectives and goals through
mission is to protect and promote the civil rights of the    advocacy, community education, leadership development
more than 40 million Latinos living in the United States.    and litigation.
Working to ensure that there are no obstacles preventing
this diverse community from realizing its dreams,            MALDEF’s goal is to foster sound public policy, laws, and
MALDEF labors to secure the rights of Latinos, primarily     programs that safeguard the rights and expand
in the areas of employment, education, immigrants’ rights,   opportunities for Latinos to participate fully in our society
political access, and public resource equity. MALDEF         and make positive contributions towards its well-being.

                                                                             Antonia Hern´ ndez

MALDEF: 35 Years of Promoting a Fair
Chance for All Latinos
                  I  f one were to capture MALDEF’s most important mission in two words, they would be
                     “affirmative action.” President John F. Kennedy first popularized the term in 1961 to address
                  the issue of discrimination in the workplace, and over the years, it has come to represent different
                  things for different people. For MALDEF, however, it has always meant the same thing: providing
                  Latinos a fair chance to participate in American society.
                  In June 2003, in the most important higher education case heard in 25 years, Gratz v. Bollinger and
                  Grutter, the U.S. Supreme Court upheld the use of race as a factor in admissions. MALDEF was
                  highly involved in these critical cases, and we were heartened by the outcome. It reaffirmed the
                  majority of Americans’ belief in the value of diversity and the role of affirmative action in
                  opening the door to opportunities in American society.
                  Since MALDEF’s founding in 1968, we have continued to focus on doing away with daily
                  discrimination against Latinos. Over the past 35 years, we have made substantial gains in fair
                  school financing and access to higher education, particularly in Texas and California; in the
                  workplace, where Latino grocery store workers can thank MALDEF for the successful strategies
                  we developed in the 1980s to open that industry to Latinos through systematic lawsuits; and for
                  business owners, as we continue to work with entities like the U.S. Small Business
                  Administration to assure that Latino entrepreneurs have access to capital, contracts and franchise
                  opportunities. In one major victory this year, the U.S. Forest Service finally agreed to take
                  substantial steps to increase Latino representation in one of its largest regions which covers the
                  entire state of California.
                  In MALDEF’s 35-year history, Latino demographics have changed dramatically: There are now
                  40 million Latinos in the United States, the largest minority group. Affirmative action has played
                  a critical role in integrating a diversity of American society into the mainstream. But significant
                  challenges remain. With that population growth has not come significantly increased political
                  power, and in some communities we have experienced considerable backlash, i.e. in the
                  Southeast, where the growth in Latinos has been extraordinary, inspiring the Ku Klux Klan to
                  demonstrate against Latinos in North Carolina. Latinos continue to suffer from discrimination on
                  a daily basis: Our children are more likely to attend overcrowded, substandard schools without
                  textbooks, college counseling or college prep courses. Our workers are more likely to be abused
                  and held back from promotion, and our citizens are still being deprived of their voice at the
                  voting booth.
                  However, as we enter the 50th anniversary of the landmark school desegregation case of Brown v.
                  Board of Education, MALDEF is confident that we can continue to support, uphold and require
                  programs and mechanisms for opening up opportunities to eradicating discrimination and to
                  integrating the multitude of diverse peoples into this country.

                  Antonia Hern´ ndez

                                                       MESSAGE              FROM THE               CHAIR

                                       Joseph A. Stern
The Judicial System’s Role in Providing
Equal Opportunity Remains of Paramount
Importance to Latinos
              A     s a young attorney, MALDEF Founder Pete Tijerina was active in defending Latinos from
                      racism and advocating for their rights. Then came the straw that broke the camel’s back,
              the impetus for founding MALDEF: his frustration with the judicial system – there was not a
              single Spanish-surname juror for a workplace injury case he was litigating.
              Now, 35 years later, the importance of representation and participation in all areas of life –
              especially reflected in the judicial system – remains paramount. As Latinos continue to be under-
              represented in the political arena, the court system provides an even more critical check and
              balance for the community.
              Today, it would be difficult to imagine that in a city where Latinos are the majority, a jury pool
              would not include any Latinos. Yet, there remains a dearth of Latino attorneys and judges. One
              way that MALDEF has attacked that problem has been to promote affirmative action in higher
              education. We have fought to increase Latino access to institutions of higher learning and to
              advocate for and provide scholarships to make the cost of that education attainable for Latino
              students. MALDEF has successfully won in-state tuition fees for undocumented students and
              each year, we directly provide scholarship money to high achievers (see Pages 12 and 13).
              Another approach has been for MALDEF to remain active in promoting qualified Latinos to the
              judiciary. This year, we took positions for and against some of President Bush’s Circuit Court
              nominees (we ordinarily limit our focus to courts in which we frequently litigate, to nominees
              whom we believe are either insensitive or hostile to civil and constitutional rights, and to Latino
              We know that diversity in our nation’s judges is critical in the fair administration of justice. We
              have seen the difference that can make, as evidenced in the critical vote of the Supreme Court’s
              first female Justice, Sandra Day O’Connor, in the University of Michigan affirmative action case.
              We hope that someday soon a Latino justice will sit on our nation’s highest court.
              Pete Tijerina’s vision and founding of MALDEF has resulted in tremendous progress for Latinos
              over these past 35 years. We are grateful of the gains we as a society have made; yet mindful of
              what remains to be gained and what could be taken away from us if we are not vigilant.

              Joseph A. Stern

                                                      2002-2003 ANNUAL REPORT                                |3
Legal Programs
                                                                                        Working to ensure a quality
Education                                                                       education so that all Latino children
                                                                                  can live up to their true potential
UPHOLDING AFFIRMATIVE ACTION                                          now focus on flawed university admissions programs that use
Access to a high-quality college education continues to be a top      criteria with little or no connection to merit or potential, such as
priority, and MALDEF is a member of Americans for a Fair              legacy preferences, standardized test scores and other unfair
Chance, a consortium of civil rights organizations supporting         measures.
affirmative action. We were deeply involved in the two
University of Michigan cases, which were heard in April by the        FAIR ACCESS TO FINANCIAL AID
U.S. Supreme Court – the first time our nation’s highest court        This year, partnering with FairTest, an advocacy group for fair
had visited the issue in 25 years. MALDEF represented student         and open testing, MALDEF filed a legal complaint against
intervenors in the undergraduate case and wrote an amicus             Florida’s Bright Futures program for providing public money for
brief to the Supreme Court in the law school case on behalf of        scholarships unfairly biased against minority students.
                                                  29 Latino           The U.S. Department of Education’s Office for Civil Rights is
                                                  organizations.      investigating our charge that the scholarship program’s
                                                  In addition,        inflexible use of college admissions tests such as the SAT I and
                                                  MALDEF staff        ACT discriminates against Latino and African American
                                                  conducted           students. Although the program is supposed to reward any
                                                  extensive           Florida high school graduate who merits recognition of high
                                                  outreach            academic achievement, it requires a minimum cutoff score from
                                                  nationwide to       standardized tests, regardless of the student’s high school
                                                  key groups          record. A federal court has found that college admissions tests
                                                  and to news         are not a valid measure of past achievement, and we are asking
                                                  media outlets.      the state to give greater weight to real measures of high school
                                                  MALDEF was          achievement in the scholarship process.
                                                  very pleased
                                                                      THE DREAM ACT
                                                  with the
                                                                      MALDEF has continued to educate public policymakers while
                                                                      supporting proposed legislation such as the federal DREAM
                                                                      Act, which would make it easier for immigrant students to
                                                  decision in
                                                                      afford the cost of a college education. We continued efforts at
                                                  June 2003 to
                                                                      the national level on pending legislation to give undocumented
                                                  uphold the use
                                                                      students the opportunity to legalize their status and continue
                                                  of race as a
                                                                      their schooling. Washington, D.C. staff met with White House
                                                  factor in
                                                                      offices to request that the president support passage of the
                                                                      Student Adjustment Act (H.R. 1918) and DREAM Act (S. 1291).
                                                  admissions.         Although the House version stalled, MALDEF remains optimistic
                                                  The court now       that the bills will remain alive for the next legislative session.
                                                  recognizes the
                                                  special role of     EDUCATIONAL EQUITY IN THE K-12 SYSTEM
                                                  educators in        It is unfortunate that state-led educational financing systems
   “Library”                                      rooting out         still often fail to deliver fair funding to Latino students. This has
   CRISTIAN GUERRERO                              discrimination,     been especially true in Texas and California, where MALDEF
                                                  and it allows       has long fought for equitable distribution of tax funding for
                                                  MALDEF to           public schools.

                                       HISTORICAL HIGHLIGHTS
 Undocumented Students                        Educational Equity                             1992 - Rodriguez v. LA. Unified School
 1982 - Plyler v. Doe - When a public         1984- Edgewood v. Kirby - MALDEF               District - Settling a 1986 lawsuit that
 school in Texas began charging tuition       began its challenge to Texas’ method of        noted an inequity between the dollars
 to undocumented children, MALDEF             financing its public schools. Soon after       spent on minority and non-minority
 challenged the practice all the way to the   the lawsuit was filed, the state legislature   students, the court approved a consent
 U.S. Supreme Court, which ruled that         appropriated more than $1 billion to           decree requiring the LAUSD to move
 those children have a right to a basic       public education, thereby reducing the         toward equal per-pupil expenditures on
 public school education.                     disparities among districts.                   basic classroom resources, including
                                                                                             teacher salaries.

                                                                                                   LEGAL PROGRAMS

MALDEF has spent more than two decades in Texas on a                   Texas legislator who
protracted battle for fair educational funding. This year, we won      sadly passed away
another round when the Texas Court of Appeals upheld a                 this year. Rep. Rangel
property tax cap in the state’s school finance law, in effect          was an early leader
deterring wealthy districts from expanding an educational              and major author of
funding gap that hurts poorer school districts (Hopson v. Dallas).     the South Texas
The decision upholds a funding mechanism championed by                 Border Initiative
MALDEF that has been in place since 1993 and that provides             (STBI) for higher
more educational equity in the state.                                  education. In the late-
                                                                       1980s, she was co-
MALDEF continues to work to improve conditions in the states           counsel with
poorer school districts, which still face challenges: recruiting and   MALDEF in a lawsuit
retaining better teachers, improving conditions in school              (LULAC v. Richards) to
facilities, and having access to better curriculum. We are seeking     support public
solutions from Texas state elected officials.                          funding of higher
ONGOING BATTLE AGAINST SCHOOL OVERCROWDING                             education in the
Following years of hard-fought, successful litigation, education       border region. In 1993,
and advocacy, MALDEF is beginning to see some relief in sight          the STBI sent an
for California’s schoolchildren, as the state’s voters approved        additional $450
Proposition 47, a $13.05 billion construction plan that will           million to universities
                                                                       along the Texas                       The late Texas Rep. Irma Rangel
provide new schools in some of the most overcrowded areas. In
addition, voters in Los Angeles approved a local measure for           border area from El
school construction and improvements. MALDEF not only                  Paso to San Antonio to Corpus to Brownsville. It also started new
endorsed both measures, but was represented on their steering          doctoral and research programs at border region state universities
committees, and our Parent School Partnership program held a           and built new buildings at several campuses. Rep. Rangel also
parent community forum on school overcrowding.                         passed a bill through the Texas legislature to build and finance
                                                                       the first professional school (a pharmacy) for South Texas.
MALDEF continues to be involved in a lawsuit against
California for a variety of unconstitutional conditions in schools     ACCESS TO THE CURRICULUM FOR ENGLISH LEARNERS
throughout the state (Williams v. California) to curtail the harmful   MALDEF continues to monitor the rights of English-language
ways in which districts attempt to cope with severe                    learners to access curriculum. In many instances, the data
overcrowding. We presented expert reports that found, among            supports that when done properly, bilingual instruction can be
other things: Latino students are disproportionately impacted by       the best transition for the limited English proficient (LEP). In
multi-track, year-round school calendars that include three fewer      Texas, MALDEF advocated to keep bilingual education intact,
instructional weeks; less opportunity to cover the entire              and requested funding to prepare high school teachers to work
curriculum; and limited access to college preparatory courses          with second language learners, especially with the new testing
and intervention programs; students bused to school to relieve         (TEKS) and graduation requirements for these students. More
overcrowding likewise face clear disadvantages, such as lack of        than 50% of secondary teachers are teaching LEP students with
parental involvement, limited access to after-school enrichment        little or no training, meaning that our LEP students are being
or extracurricular activities; and students suffer from lower          mainstreamed at the secondary level without any support.
academic achievement.

The first professional school in South Texas will be built, thanks
to the advocacy of MALDEF friend and supporter Irma Rangel, a

                                        HISTORICAL HIGHLIGHTS
              1992 - LULAC v. Richards - a state court ruled that      Access to Curriculum
              the allocation of virtually no higher education          1984 - Keyes v. Denver School District #1 - This case
              programs or facilities in the predominantly Latino       made great strides toward improving Denver’s
              border area of South Texas violated the state            sensitivity to limited-English proficient students.
              constitution. Although the state Supreme Court           MALDEF pressed for and received strong bilingual
              reversed the decision, the legislature allocated         and multi-cultural programs and an affirmative
              hundreds of millions of dollars in new funding to        action employment plan.
              improve course offerings and to expand campuses
              and facilities.

                                                                              2002-2003 ANNUAL REPORT                                  |5

                                                                                    Addressing issues of fair and safe
Employment                                                                       working conditions and eliminating
                                                                                discriminatory barriers to employment
EMPLOYMENT PARITY IN GOVERNMENT                                          Washington, D.C. and San Antonio met with the EEOC and the
Of all employers, one would expect that the government should            Department of Labor to successfully persuade these agencies to
be the most fair in representing all of its tax-paying citizens in the   limit the decision’s negative effects on the statutes they are
hiring process. Unfortunately, discrimination is alive and well in       charged with enforcing.
the realm of public employment. In California, it took Latino
employees more than a decade to get relief, but with the efforts of      In California, MALDEF successfully co-sponsored legislation to
MALDEF and co-counsel this year, the U.S. Forest Service has             protect undocumented workers from employers that pay less
settled a massive class action lawsuit filed on behalf of Latino         than minimum wage, refuse to pay for overtime or otherwise fail
employees against the Pacific Southwest Region, one of the largest       to comply with other labor laws. In the Texas legislative session,
service units covering the entire state of California. The settlement    we worked to amend various sections of the Labor Code to
enforces an earlier agreement to elevate its proportion of Latinos       broaden the definition of the term “employee and complainant”
to more closely represent those in the labor pool (from 7 to 24          so that an individual’s immigration status is not taken into
percent). The Forest Service has agreed to take substantial steps to     account when seeking remedies for violations of these state laws.
increase Latino representation and to remove barriers to achieving       REQUIRING LAYOFF NOTIFICATION
a significant increase in that representation.                           In Texas, to address the economic downturn, MALDEF
                                                                         collaborated with policymakers to craft a state law version of
                                                                         the WARN Act (Worker Adjustment and Retraining Notification
Jimmy Ramirez was a long-term employee at College of the
                                                                         Act), which requires employers of 59 or more persons working
Desert near Palm Springs, California. When the position of
                                                                         at a single facility to provide 60 days advance notice of covered
custodial supervisor became vacant, it was logical that he would
                                                                         plan mass layoffs. Also in Texas, we successfully mediated a
apply for the position after having filled it on an interim basis.
                                                                         case that presented a WARN Act challenge to a mass employee
However, he was told that because he did not hold a high school
                                                                         layoff without requisite notice by the Lucchese Boot Co.
diploma, an Anglo applicant from outside the college who lacked
experience would be granted the position. Ramirez trained the
new supervisor. In Ramirez v. Kroonen, we challenged the
community college to promote our client to the position of                   HISTORICAL HIGHLIGHTS
custodial supervisor. The court agreed that the case should
proceed to trial, and we began and continue court-ordered                MALDEF has fought to address not only entry-level
settlement discussions.                                                  employment, but also promotion and job-training opportunities.
SECURING SAFE AND FAIR WORKING CONDITIONS                                Access to Grocery Stores
In a stunning blow to worker protections, the U.S. Supreme               1976 - Alaniz v. Tillie Lewis Foods - MALDEF charged that
Court made a ruling in Hoffman Plastics stating that                     Latinos had been kept out of certain positions, could not move
undocumented workers are not entitled to relief for back pay             up the seniority list nor obtain the skills needed to progress in
under the National Labor Relations Act. This ruling opened the           their jobs. The agreement was one of the most extensive
door for abuse by unscrupulous employers, and MALDEF                     employment victories won by a private organization and
worked to undo its adverse effects. MALDEF staff from                    provided a seniority system that was more equitable to Latinos,
                                                                         while setting up funds to compensate victims of past
                                                                         discrimination and training program for minorities and women.
                                                                         1986 - Ballasteros v. Lucky - As one of a series of challenges to
                                                                         grocery stores throughout the country, MALDEF’s settlement
                                                                         with Lucky established yearly and ultimate goals for hiring and
                                                                         promoting Hispanics in several hundred retail stores. In 1984 and
                                                                         1985, MALDEF helped obtain a consent decree with California’s
                                                                         Vons supermarket chain (ensuring Hispanics would comprise at
                                                                         least 14 percent of Vons’ workforce), as well as with H.E. Butt Co.
                                                                         of San Antonio and Ralph’s Grocery Co. in California.

                                                                         Fair Hiring in Government/Utility Companies
                                                                         1969 - Urquidez v. General Telephone - the New Mexico telephone
                                                                         company agreed to post equal employment notice and provide
                                                                         training for Latinos.
                                                                         1987 - MALDEF reached a landmark consent decree in a
                                                                         challenge to the San Francisco Fire Department that set goals for
                                                                         recruiting and promoting minorities and women.
                                                                         2002 - The U.S. Forest Service agreed to elevate its “workforce
                                                                         parity” in California to more closely approximate the 24%
“Street Scene in Arizona”                                                representation of Latinos in the labor pool.

                                                                                                     LEGAL PROGRAMS

                                                                                               Establishing the right of all
Immigrants’ Rights                                                                            immigrants to fair and equal
                                                                                                  treatment under the law
During the formation of the Department of Homeland Security              Throughout the country, individuals seeking work continue to be
(DHS), MALDEF pushed for a strong immigration services                   intimidated and harassed by police. In addition, poor treatment
component, a separate office to handle juvenile issues outside of        of day laborers has become an emerging issue in the Southeast
the new agency, a retention of the immigration courts in the             and other areas of the country where the number of Latinos has
Department of Justice, a strong Office of Civil Rights in the new        increased dramatically. In Atlanta, MALDEF staff successfully
agency, and a designated Deputy Inspector General to handle              intervened when the Home Depot planned to begin the forceful
civil rights complaints.                                                 removal and arrest of day laborers that had been gathering in the
                                                                         parking lot. The matter ended without arrests, and a temporary
As Congress dismantled the INS and divided it into two branches          space for the day laborers to gather was secured.
under the newly formed DHS, MALDEF immediately analyzed the
move. In a report of all of the violations that could occur if           In Chicago, after investigating reports that members of the
protecting civil rights is not a priority in the development of the      Chicago Police Department were harassing and intimidating day
new agency, MALDEF examined issues such as racial profiling,             laborers, MALDEF reached an agreement that the police would
human rights violations at the border, the use of state and local        not enforce a city ordinance passed to regulate the activities of
police to enforce federal immigration laws and our nation’s failed       street vendors against day laborers and agreed to drop charges
immigration policy. Our concern was that the DHS not look at all         against two laborers.
immigrants, including millions of legal ones, as suspected terrorists.
                                                                         In California, we filed a lawsuit with the National Day Laborer
SAFER COMMUNITIES THOUGH SEPARATION OF POWERS                            Organizing Network on behalf of day laborers against the cities
MALDEF has long supported the separation of powers between               of Rancho Cucamonga and Upland, whose anti-solicitation
state/local law police and federal immigration officers. If local        ordinances prevent these workers from seeking work.
police are identified with immigration enforcement, public safety
is undermined in the community, as victims and potential                 THE RIGHT TO IDENTIFICATION
witnesses fear that any contact with the police could lead to            MALDEF’s Washington, D.C. office worked extensively in
deportation. MALDEF testified before the U.S. House                      cooperation with California offices, on the issues surrounding
Subcommittee on Immigration, Border Security, and Claims and             the acceptance and challenges to the Mexican matrícula consular
the Congressional Black Caucus about the importance of this              (“Mexican consular ID”). We fought a proposal in Congress that
separation of powers. Also in Washington, D.C., in high-level            would prohibit acceptance of any foreign ID, reaching out to
meetings with White House and Justice Department personnel,              potential new coalition partners, such as banks, local police,
MALDEF attempted to convince the Bush Administration to                  and the tourism industry.
reverse their new interpretation of the law regarding the claimed        In Atlanta, MALDEF played an integral role in the decision-
“inherent authority” to enforce civil immigration laws.                  making process that made DeKalb County the first county in
                                                                         the Southeast to pass a resolution that recognizes the matrícula
                                                                         consular as an official form of identification. In California, we
Juan Pozo Rodriguez had moved to Texas for work and went to the
                                                                         advocated and the state legislature adopted a resolution that
state’s Department of Public Safety (DPS) to apply for a driver’s
                                                                         urges cities and counties throughout the state to accept the
license, having already held a valid one in California. When he went
                                                                         identification card as an official form of identification.
to inquire about receiving his license, an overzealous DPS worker
seized his INS work permit and held it for nearly four months until
a MALDEF attorney issued a demand letter. MALDEF has filed suit
against the DPS, stating that it encouraged state bureaucrats to act
as if they are federal immigration officers, which can lead to unfair
profiling and civil rights violations. Pozo’s case illustrates the            HISTORICAL HIGHLIGHTS
danger of state involvement in immigration matters.
                                                                          INS Raids
REMEDYING INS ABUSE                                                       1992 - International Molders v. Nelson - MALDEF successfully
In just one example of the offenses of the now-former INS, in             challenged the constitutionality of the INS practice of
Illinois, the Chicago District Office punished thousands of low-          workplace raids without authority, ending the use of open-
income immigrants who were making a sincere effort to acquire             ended warrants in an effort to single out Latinos for possible
legal permanent residency. MALDEF filed a lawsuit (Ramos v.               violations and establishing standards of conduct and
Ashcroft) with co-counsel, stating the District Office of the INS         boundaries for workplace entry.
violated it own rules by accepting premature applications from
victims of fraud. The INS was well aware of a widespread                  Access to Benefits
problem of self-styled “immigration consultants” erroneously              1995 - Gregorio T. v. Wilson - This challenge halted the
advising individuals to apply for legal permanent residence, many         implementation of California’s Proposition 187, which would
years before they would become eligible, under Section 245(i), a          have barred immigrants from receiving education and other
temporary federal law to promote family unification. Despite this         services. As part of the ruling, a U.S. judge found that public
knowledge, the district office adopted a practice of accepting these      education cannot be denied based on immigration status and
applications, retaining of thousands of dollars in special fees, and      the schools cannot require proof of status for enrollment.
commencing removal proceedings against most of the applicants.

                                                                                2002-2003 ANNUAL REPORT                                 |7
                                                                                       Enhancing Latino influence in the
Political Access                                                                           political process by ensuring
                                                                                               meaningful participation
ENSURING ACCESS TO REGISTRATION AND THE VOTING BOOTH                     one that continued to fracture the Latino population to create
MALDEF’s Washington, D.C. office played a lead role during the           safe wards for Anglo incumbents. Litigation is ongoing in that
debate surrounding election reform. We met with congressional            case, Gonzalez v. Aurora.
offices to influence the bill that ultimately passed as the Help
America Vote Act (“HAVA”) and were successful in stripping out           CHALLENGING “AT-LARGE” ELECTIONS
numerous problematic provisions in early drafts of the election          MALDEF is generally opposed to the use of “at-large” voting
reform bill. The bill that eventually passed contained a number of       systems for choosing bodies of local officials, such as city councils,
important protections for voting rights, but ultimately, did not         because Latinos are often prevented from electing any candidates
gain MALDEF’s support because of the roll-backs to important             of choice as a result of racially polarized voting. (Under the at-large
gains achieved under the National Voter Registration Act and the         system, all elected officials are chosen by the total voting
Voting Rights Act. MALDEF secured widespread media attention             population, regardless of geographical location.) When several
to our role and position in the debate, and we pushed for full           California neighborhoods proposed to secede from the City of Los
funding for the act to ensure that states and localities facing          Angeles, MALDEF successfully encouraged the adoption of a
critical budget shortfalls will be able to implement improvements.       district-based method of electing city council members in the
                                                                         proposed San Fernando Valley city. MALDEF opposed the at-large
PROTECTING LANGUAGE RIGHTS OF VOTERS                                     system for the proposed city of Hollywood because, although
Section 203 of the federal Voting Rights Act allows protections for      Latinos would have comprised about 40 percent of the population,
those who are limited English proficient (LEP). In the nation’s          it was likely that they might have been effectively prevented from
capital, MALDEF played a key role in ensuring that the Census            electing any of the five council members in the new city.
Bureau and the Department of Justice issued regulations
expeditiously on new jurisdictions covered by the act’s language         MALDEF sponsored the California State Voting Rights Act of
provisions in time to implement for the 2002 election cycle. We          2001, which was signed into law and now makes it easier for
worked closely with the Justice Department to ensure training            Latinos to challenge at-large voting systems.
and compliance. Our regional offices met with the election               ELIMINATING ANTIQUATED VOTING SYSTEMS
officials in the newly covered jurisdictions, providing them with        In del Valle v. Illinois State Board of Elections, MALDEF has
technical assistance, including a community outreach pamphlet            challenged the use of punch-card balloting systems in Illinois
MALDEF staff prepared, as well as other materials.                       and the lack of Spanish-language assistance within Cook County.
In a California case, MALDEF was spurred by the actions of               After more than 17 court-mediated settlement discussions, we
allegedly unscrupulous petition circulators who misled Latino            are in the process of finalizing the settlement documents with all
voters. We filed a federal lawsuit against the Orange County             of the defendants.
Registrar in California on behalf of Spanish-speaking and other
LEP citizens after petitions for a recall election targeting a local
school board member were circulated only in English, in spite of             HISTORICAL HIGHLIGHTS
the Voting Rights Act requirement that they also be provided in
Spanish and Vietnamese due to the LEP citizen population in              Voting Rights Act
the county. The case (Padilla v. Lever) was dismissed by a lower         1975 - The Voting Rights Acts of 1965 renewal - addressing the
court, and MALDEF appealed to the federal Ninth Circuit Court            concerns of Latino disenfranchisement and past voting rights
of Appeals.                                                              abuses, MALDEF successfully convinced Congress to include
                                                                         Latinos into the act and add jurisdictions in Texas, Arizona and
PROVIDING ACCESS FOR CANDIDATES                                          parts of Colorado and California to special scrutiny by the U.S.
In its third voting rights violation in recent years, the city of        Department of Justice.
Seguin, Texas prevented Latino candidates from placing their
names on the ballot to run for election under a new Latino               1982 - MALDEF helped create a new section that makes
majority district. The city enacted a new redistricting plan             election practices that are discriminatory in effect, illegal and
creating the district six days after closing the candidate filing        which included a bilingual provision to protect limited-English
period. In order to protect an Anglo incumbent, it refused to re-        proficient voters.
open that filing period. MALDEF filed suit (LULAC v. City of
Seguin), blocking the election and successfully delayed the              Fair Political Boundaries
election until all candidates were offered the opportunity to file       1990 - Garza v. County of Los Angeles - after proving that the
for a place on the ballot. As a result, the City of Seguin has elected   Board of Supervisors had a long history of deliberately
its first Latino-majority council.                                       fragmenting the Latino community, MALDEF won the first
                                                                         Latino seat, resulting in the first Latino elected to the board in
BREAKING DOWN BARRIERS TO LATINO VOTING                                  more than 100 years.
The city council of Aurora, which now has one of Illinois’ largest       1995 - King v. Illinois State Board of Elections - The court found
concentrations of Latinos outside of Chicago, intentionally              that creating Illinois’ first new Latino Congressional district
discriminated against Latino voters by drawing a ward map that           was an appropriate remedial measure for past electoral
violated the “one person, one vote” principle and by fracturing          discrimination in the Chicago area, maintaining the first
the Latino community of interest. MALDEF convinced the City              Latino-majority congressional district in the Midwest.
Council to withdraw the plan, but unfortunately, it passed a new

                                                                                                LEGAL PROGRAMS
                                                                                                   Ensuring the Latino
Public Resource Equity                                                                     community a fair share and
                                                                                         equal access to public services
With the downfall of the national economy, many states faced          State and federal laws protect the rights of the Limited English
revenue reductions and budget cuts, and MALDEF monitored              Proficient to receive meaningful services. MALDEF provided
proposed funding reductions to ensure that vital services             “traveling trainings” for legal services and a “Language Access
affecting Latinos were not disproportionately cut. In California,     and Policies” manual. The prospects of ensuring better oversight
when the budget shortfall was estimated at upward of $35              and accountability of state agencies was made more difficult
billion, Gov. Gray Davis proposed slashing K-14 education by          because of budgetary crises, so we turned our focus on private
nearly $7 billion and health and human services by more than          health care providers to co-sponsor legislation to ensure all
$2 billion in ways that would unfairly impact Latinos. MALDEF         health maintenance organizations (HMOs) develop standards to
successfully beat back cuts in critical funding for this vulnerable   provide culturally and linguistically appropriate services. In
population. We fought to save the Healthy Start program and           California, those that contract with the state are required to
drastic reductions to the Medi-Cal program, which helps many          provide language assistance services. MALDEF is also working
“working poor” in the Latino community access necessary               with several language rights advocates to provide
health care services.                                                 recommendations on legislation that would ban the use of
                                                                      children as interpreters, a measure that raises a number of
                                           ACCESS TO MEDICAL          challenges in implementation and enforcement.
                                           Lack of medical            FAIR AND EQUITABLE TREATMENT IN LAND USE DECISIONS
                                           insurance continues to     MALDEF had two major policy victories in California land use,
                                           be a pressing issue for    helping establish our reputation as the premier Latino civil
                                           Latinos nationally.        rights organization working to resolve public service and
                                           Our Sacramento office      facility deficiencies in existing communities through better land
                                           convened a Latino          use planning. Our Sacramento staff worked on legislation
                                           coalition to research a    enacted into law that sets state land use priorities to promote
                                           variety of approaches      infill and equity, protect natural resources and farmland and
                                           to increase coverage       promote efficient development patterns. MALDEF has been
                                           for low-wage working       appointed to the Governor’s advisory committee that is using
                                           Latinos and their          these priorities to update the state’s Environmental Policies and
                                           families, and several      Goals Report. In addition, we worked on legislation enacted
                                           bills were introduced      into law that would promote infill development, affordable
                                           in the legislature,        housing, and farmworker housing by exempting certain
                                           including some             projects from the requirement to perform a full environmental
“Spice Market”                             legislation that would     impact report.
CRISTIAN GUERRERO                          provide universal
                                                                      MALDEF developed legislation to facilitate school
                                           coverage, while other
                                                                      modernization and construction in existing communities.
legislation would require employers to either provide coverage
                                                                      MALDEF staff participated as experts in the state legislature’s
for employees or pay into a fund for that purpose.
                                                                      Smart Growth Caucus Retreat, the California Center for Research
In addition to protecting workers, MALDEF has focused on              on Women and Families Policy Summit 2003, and the Local
children. We released a seminal report on the status of Latino        Government Commission’s seminar on “Creating Vibrant
children under age five, and provided policy recommendations          Neighborhoods for Our Growing Latino Population.”
for efforts to protect this important population. In California, we
worked to ensure that Latino children receive their fair share of
the state’s tobacco tax money that was earmarked for early
childhood programs. In addition, in Los Angeles County, we                HISTORICAL HIGHLIGHTS
participated in a coalition to address the closures of health care
clinics and hospitals, including supporting legislative measures       Disproportionate Impact
that would generate income for the county health care system           1971 - La Raza Unida v. Volpe - MALDEF stopped the building
and organizing town hall meetings and other events to educate          of a freeway in Alameda County, California that would have
the community.                                                         displaced more than 5,000 low-income Latinos and destroyed
                                                                       three public parks.
In Texas, MALDEF successfully worked with hospital districts in
the major urban areas to defend their policies of allowing access      Fair Use of Tax Dollars
to indigent health care programs regardless of immigration             2001 - Rocha v. City of Poth - In one of the latest of many cases
status, in spite of a contrary opinion by the Texas Attorney           where MALDEF has fought to protect the rights of Latinos to
General. MALDEF worked closely with legislators, attorneys,            adequate and fair public resource distribution, we won the case
and administrators for the major hospital districts on legislation     against the City of Poth, a small South Texas town. It finally
to authorize local public health entities to use funds for             agreed to pave the streets in its Latino neighborhoods, giving
preventive health services and indigent health care programs to        them fair use of their tax money.
serve local residents regardless of immigration status.

                                                                             2002-2003 ANNUAL REPORT                               |9

                                                                            Working to ensure that Latinos receive
Access to Justice                                                             fair treatment in the judicial system

REVIEWING NOMINEES FOR THE BENCH                                       Pickering is a
From time to time, MALDEF evaluates certain judicial                   federal judge
nominations for courts in which we frequently litigate and to          with past ties
Latino nominees. This was a busy year for evaluating                   to supporting
nominations by President Bush, and MALDEF was pleased with             Mississippi’s
the outcome of two judicial candidacies we took positions on,          segregationist
and we await the results of four others.                               way of life
                                                                       whose past
MALDEF supported Edward Prado to the Fifth Circuit Court               decisions
of Appeals, to which he was confirmed. We found that Prado             would paint a
had an established record indicating he was someone who                grim picture
would be fair and protect civil rights, and we supported him           for plaintiffs in
even though he ruled against MALDEF in a major school                  employment
testing case in Texas. On the other hand, MALDEF opposed                                              Immigrants’ rights rally in Michigan
D.C. Court of Appeals nominee Miguel Estrada, whose                    cases and
nomination was halted. Having never actually served on the             voting rights cases, and Owen, a Texas Supreme Court justice,
bench, his sparse record indicated he would take some very             has been hostile to workers and women’s rights.
troubling positions on key areas of the Constitution and civil
rights affecting Latinos.                                              MALDEF also opposes Alabama Attorney General William Pryor
                                                                       to the Eleventh Circuit Court of Appeals, where the Latino
MALDEF supports the pending nomination of San Francisco                community is burgeoning, as his record shows an unwillingness
Superior Court Judge Carlos Bea to the Ninth Circuit Court of          to protect Latinos’ access to basic rights like education, voting
Appeals, as his extensive record points to respect for the rights of   and employment and our civil rights and civil liberties.
litigants. However, we were very disappointed when President
Bush re-nominated two candidates previously rejected by Senate         FIGHTING TERRORISM WITHOUT RACIAL PROFILING
Judiciary Committee, Charles Pickering and Priscilla Owen.             Throughout the country, MALDEF continues to target the
                                                                       problem of law enforcement unfairly singling out Latinos and
                                                                       others through “racial profiling.” MALDEF’s Washington D.C.
                                                                       office participated with a group of organizations working on a
                                                                       bill to end the practice, legislation which had been re-crafted in
                                                                       the aftermath of the September 11 tragedy. MALDEF has worked
                                                                       closely with other civil rights groups to explore methods of
                                                                       ending the practice while responding to credible concerns about
                                                                       fighting terrorism.
                                                                       In Texas, we joined a coalition including law enforcement
                                                                       agencies to fine-tune the reporting of data about traffic stops,
                                                                       arrests and searches by local police departments. Of particular
                                                                       concern is the continued practice of officers that result in a
                                                                       disproportionately high percentage of Latino and African
                                                                       Americans who make up the majority of people stopped,
                                                                       searched and arrested. As a partner in the Georgia Multicultural
                                                                       Partnerships Network, the Atlanta office served as an expert to a
                                                                       coalition of 40 African American and Latino leaders.

                                                                            HISTORICAL HIGHLIGHT
                                                                       MALDEF’s First Legal Victory
                                                                       Among MALDEF’s first lawsuits in Colorado, Texas and
                                                                       California, we addressed the issue of Latinos’ right to protest.
                                                                       Our first legal victory was in 1968 - In Edcouch Elsa High School
                                                                       in Hidalgo County, Texas - 192 students were expelled when
                                                                       they boycotted classes after the school board refused to listen
                                                “Voces Unidas”         to their demands in addressing educational abuses. A judge
                                              IRENE CARRANZA           agreed that the expulsion unconstitutionally violated the
                                                                       students’ rights to protest.

Community Education & Leadership Development
                                                                                                                     Training parents, school
Parent School Partnership                                                                                          personnel and community
                                                                                                                       based organizations to
(PSP) Program                                                                                                         lead in the educational
                                                                                                                       attainment of children
For nearly two years, children at Gratts Elementary School in                             POSITIVE ENGAGEMENT
downtown Los Angeles looked longingly through the window of                               It is a common misconception that Latino parents – particularly
an idle computer lab: All of the equipment was in place, but                              immigrants – are not interested in their children’s education.
school district bureaucrats had failed to allow electrical                                Nothing could be further from the truth. MALDEF’s PSP
connections for the project. The principal was frustrated, having                         program has encouraged them to work with the system,
worked hard to get the lab up and running. This year, however,                            producing very enthusiastic parent graduates with the support –
students now have access to the computer lab, thanks to the                               and to the delight – of school administrators and teachers.
efforts of MALDEF’s Parent School Partnership (PSP) program.
                                                                                          MALDEF’s PSP has opened doors for Latinos to engage school
                                                                                          administrators and officials in positive interaction throughout the
                                                                                          nation. For example, in Los Angeles, our PSP parents have been
                                                                                          involved in advocating for a sorely needed high school, the
                                                                                          Belmont Learning Center, which may finally get built after the
                                                                                          community has patiently waited more than two decades for its
                                                                                          completion to alleviate severe overcrowding. In the nearby
                                                                                          Whittier School District, the PSP parent group established a
                                                                                          district-wide parent center to provide parents from 13 schools an
                                                                                          opportunity to participate in trainings, workshops and generally
                                                                                          become more involved.
                                                                PHOTO: GEORGE RODRIGUEZ

                                                                                          At one Houston graduation ceremony for 74 parents, the
                                                                                          Houston Community College Chancellor for Economic
                                                                                          Development Jos´ Villareal was so impressed by the parents’
                                                                                          commitment, he wrote the PSP program into his budget. The
                                                                                          PSP program was also nominated for the Houston’s Hispanic
                                                                                          Chamber’s Triunfando Award, which recognizes the Educator
                                                                                          of the Year.
                                                                                          Our new PSP office in Atlanta, serving the burgeoning
                                                                                          population of Latinos in the region, continued to recruit new
Gratts Elementary School’s new technology laboratory                                      organizations and parents to the program, while participating in
                                                                                          groups with the goal of identifying issues that affect the Latino
                                                                                          community and building campaigns and traveling PSP
In partnership with schools and community groups, MALDEF’s
PSP informs parents of their rights and responsibilities, how to                          PROGRAM IS AVAILABLE NATIONWIDE
navigate the school system and how to take the lead in affecting                          This year, MALDEF consolidated the PSP offices, which now
change. One of the graduation requirements is that the parents                            operate in Atlanta, Houston and Los Angeles. We continued to
launch a project to improve their children’s schools. At Gratts                           extend the reach of our 16-week curriculum by expanding our
Elementary, the PSP parents decided it was time to hook up the                            “training of trainers” sites, bringing the model to locations
computer lab. One of the lessons they learned in the program                              throughout California, Nevada, Nebraska, Texas, New Mexico
was that elected officials were to be held accountable to the                             and Wisconsin, and worked to bring it to the Southeast. Among
public; thus they contacted LAUSD Board Member José                                       those served were locations in dire need of school reform to
Huizar, who made the arrangements necessary to get their lab                              address poor academic performance.
operational. It is now used for students, parents and teachers as
a comprehensive learning and resource tool and as a vehicle for                           In June, MALDEF launched a website ( as
greater communication among the members of the community                                  a nationwide resource for parents and schools and a means for
through a parent/community newsletter and expanded school                                 them to share school improvement projects and other
website.                                                                                  information with each other.

                                                                                                2002-2003 ANNUAL REPORT                                | 11
                                  C O M M U N I T Y E D U C AT I O N & L E A D E R S H I P D E V E L O P M E N T
                                                                                                                                             Making higher
Immigrant Higher Education                                                                                                              education affordable
                                                                                                                                                to qualified
                              Outreach Program                                                                                               undocumented
                              PROMOTING COLLEGE ACCESS                                               Along with La Agencia de
                              MALDEF’s past outreach to elected officials in states like             Orci & Asociados, a
                              California and Texas has resulted in laws that allow more              leading U.S. Hispanic
                              qualified students to attend public institutions of higher learning,   advertising agency,
                              by exempting undocumented ones from the high out-of-state fees         MALDEF launched a
                              usually charged to non-residents at its institutions of higher         bilingual (English and
                              education. This                                                        Spanish) campaign, “Go
                              year, we continued                                                     for it/Ya puedes” with
                              to publicize those                                                     PSAs for television, radio
                              programs to                                                            and billboard/posters. In
                              college counselors                                                     addition, we launched a
                              through our                                                            web page featuring an
                              Immigrant Higher                                                       extensive scholarship list.
                              Outreach Program,
                              launching an                                                           “If your mind is hungry,
                              extensive public                                                       now you can feed it!” states
                              service                                                                a PSA campaign to
                              announcement                                                           encourage students to
                              (PSA) campaign.                                                        attend college

                                Fabiola Martin always planned on going to college: She had been a bright college prep student in high
                                school and was accepted to the University of Southern California. One week before the beginning of
                                the school year, she had enrolled in classes and packed her bags when she received a letter in the mail:
                                                                              Because she was undocumented, the school was rescinding
                                                                              her financial aid packet. Devastated, Martin was able to
                                                                              enroll in a local community college with the help of $2,500
                                                                              grant from her high school, and after attaining legal status,
                                                                              she is now a student at Loyola Marymount Law School and
                                                                              a MALDEF intern.
                                                                             Although undocumented students in some states are
                                                                             eligible for in-state resident tuition, they still cannot

                                                                             receive federal or state assistance, and even private
                                                                             scholarship funds helping Latino students require legal
                                                                             status. MALDEF saw the critical funding gap that no one
                                                                             was filling.                                                        Federico Jimenez

                                                                             This year, through a generous $50,000 annual commitment from MALDEF Board
                                                                             Member Federico Jimenez, MALDEF was able to launch the Ellen and Federico
                                                                             Jimenez Scholarship Fund. This money will allow grants that will make a critical
                                                                             difference in the lives of students who would otherwise be unable to afford the cost of
                                             Fabiola Martin                  a higher education.

                              12 |   MALDEF 35TH ANNIVERSARY

Scholarship Committee
Sean A. Andrade, Esq.
                                              O         ur scholarship program to support law students with a
                                                        demonstrated commitment to serving the Latino community
                                              continues to be an important part of MALDEF’s mission. Our scholarship
                                              committee is comprised of Latino attorneys in private practice at the early
Baker & Hostetler                             to mid-career level. Committee members not only participated in making
                                              the selections of scholarship recipients but have begun planning
Elizabeth A. Camacho, Esq.                    fundraising efforts for the MALDEF scholarship program for the next
Irell & Manella                               fiscal year.
                                              As in the past, MALDEF had a large number of scholarship applicants
Bonnie Chavez, Esq.                           from law schools across the country. Scholarships were awarded based on
Univision Music Group                         three primary factors:
                                              • demonstrated involvement with and commitment to serve the
Donovan J. Cocas, Esq.                          Latino community
Greines Martin et al LLP                      • academic achievement indicating the potential for successful completion
                                                of law school
Daniel Garcia, Esq.                           • financial need
Richards, Watson & Gershon
                                              2002 MALDEF LAW SCHOOL
Prof. Laura Gomez
UCLA Law School
                                              SCHOLARSHIP RECIPIENTS
                                              Valerie Kantor Memorial Scholarship Recipient
Glenda Martinez, Esq.                         Outstanding Overall Applicant
Univision Television Group                    $7,000.00
                                              TEODORO B. BOSQUEZ IV
                                              Harvard Law School 1st Year
Carlos Matos, Esq.
Dewey Ballantine LLP                          Vilma Martinez / Helena Rubenstein Scholarship
                                              Outstanding Female Applicant
Edith Ramirez, Esq.                           $6,000.00
Quinn Emanuel Urquhart Oliver & Hedges, LLP   FRANCHESCA CHRISTINA HERRERA
                                              Boalt Hall Law School 1st Year
Rey Rodriguez, Esq.
Buena Vista International Inc.                William Randolph Hearst Endowment Scholarship
                                              Best Essay
Irma Rodriguez Moisa, Esq.                    ENRIQUE ARMIJO
Liebert Cassidy Whitmore                      University of North Carolina,
                                              Chapel Hill School of Law 1st Year
Thomas A. Saenz - ex officio
Vice President of Litigation, MALDEF          MALDEF Law School Scholarship
Bernardo Silva, Esq.                          SHIREEN KARIMI
Sony Music Entertainment                      Harvard Law School 1st Year
                                              FELICIA MARIA MEDINA
                                              Yale Law School 1st Year
Diana Torres, Esq.
O’Melveny & Myers, LLP                        OSCAR AMOR PARDO
                                              UCLA School of Law 1st Year
Rodrigo Vazquez, Esq.                         NORA PRECIADO
Latham & Watkins                              Boalt Hall Law School 1st Year
                                              VERONICA RAMIREZ
Benjamin A. Vega, Esq.                        UC Davis School of Law 2nd Year
Ascent Media Group                            FRANCES ELIZABETH VALDEZ
                                              University of Texas School of Law 1st Year
Victor Viramontes - ex officio                RAY ANTHONY YBARRA
Staff Attorney, Higher Education, MALDEF      Stanford Law School 1st Year

                                                             2002-2003 ANNUAL REPORT                                      | 13
Contributing to MALDEF

                                         Fried, Frank Harris, Shriver & Jacobson    Cox, Castle & Nicholson, LLP
Sharing our Vision                       The Gas Company, A Sempra Energy
                                                                                    Cummins Engine Foundation
                                                                                    DaimlerChrysler Corp. Fund
Our vision is of an America where        General Motors Corporation                 Delgado, Acosta, Braden & Jones, P.C.
being Latino is no longer an obstacle    Health Care Service Corporation            Deloitte & Touche
to full participation in society. We     Intercultural Development Research         Deutsche Bank
imagine an America where all people,     Kilpatrick Stockton LLP                    Diageo North America, Inc.
including Latinos, enjoy the same        Law Offices of Enrique Moreno              Dreamworks SKG
rights and protections under the law;    Linebarger, Goggan, Blair, Pena &          Edison International Corp.
                                           Sampson, LLP                             Fannie Mae
where Latino voices are fully heard      Mayer Brown Rowe & Maw                     The Fluor Foundation
and represented in the political         McDonald’s Corp.                           Francis Beidler Foundation
process; where all people work           Motorola, Inc                              Freeborn & Peters
together to maintain high levels of      NBC4 / Telemundo 52                        Gardner Carton & Douglas, LLC
justice and fairness throughout the      Prudential Financial                       Gloria Molina For Supervisor
                                         Shell Oil Company                          Goldberg, Kohn et al.
American system. Thank you to all of
                                         Southern California Edison                 Goldman Sachs & Company
you who have supported MALDEF            Southwest Airlines                         Goldstein, Demchak, Baller, Borgen &
throughout this year.                    Texas Equal Access to Justice Foundation      Dardarian
                                         Toyota Motor Sales USA, Inc.               H.E.Butt Grocery Company
OUR CORPORATE AND                        TXU Corporation                            The Hearst Service Center
                                         Tyson Foods, Inc                           Hilgers & Watkins, P.C.
                                         Univision Television Group, Inc.           Holland & Knight
PLATINUM PARTNERS: $100,000+             Verizon Communications, Inc.               Houston Community College System -
Anheuser-Busch Companies                 Walt Disney Company                           Southeast College
The Ford Foundation                      Wells Fargo & Company                      Irell & Manella, LLP
The James Irvine Foundation              Winston & Strawn                           J.P. Morgan Chase
The Rockefeller Foundation               Zubi Advertising Services, Inc.            Jenner & Block LLC
The Sandler Family Supporting                                                       Katten Muchin Zavis Foundation, Inc.
  Foundation                             BRONZE PARTNERS: $1,000 – $9,999           KB Home
Soros Foundation                         AARP                                       KTLA 5
Washington Mutual                        Abbott Laboratories Fund                   KTTV Fox 11
                                         The Abernathy/McGregor Group               L.A. Dept. of Water and Power
GOLD PARTNERS: $50,000 – $99,999         ABN AMRO Services Company                  La Agencia De Orci y Asociados
America’s Charities                      ACS State and Local Solutions              Latham & Watkins
California Community Foundation          AFL-CIO                                    Law Offices of Francisco G. Medina
Center for Law in the Public Interest    The Ahmanson Foundation                    Law Offices of Frank Herrera, Jr.
The Gerber Foundation                    AIG Invesment LLC                          Law Offices of Nicholas R. Allis
Houston Endowment Inc.                   American Federation of Teachers            Liebert Cassidy Whitmore
Jeht Foundation                          Amigas de MALDEF                           Linebarger Goggan et al.
John S. and James L. Knight Foundation   AOL Time Warner, Inc.                      Lockheed Martin Corporation
Kaiser Permanente                        Arnold & Porter                            Lord, Bissell & Brooks
Levi Strauss Foundation                  Automobile Club of Southern California     Los Angeles Times
Marguerite Casey Foundation              Azteca Foods                               Macias & Associates
The Rosenberg Foundation                 Baker & Hostetler, LLP                     Markle Foundation
The State Bar of California              Baker & McKenzie                           Matt Construction Corporation
                                         Barnes & Thornburg                         Matt Garcia Foundation
SILVER PARTNERS: $10,000 – $49,000       Bechtel Infrastructure Corp.               McDonald’s Hispanic Operators
Arthur M. Blank Foundation               Blockbuster Inc.                              Association
AT&T                                     The Boeing Company                         Mehri & Skalet, LLC
Bank of America                          California Commerce Bank                   Miner, Barnhill & Galland, P.C.
BELO Corporation                         California Healthcare Foundation           Munger, Tolles & Olson
BP                                       California Hospital Medical Center         Naegelin Investment Company
Bracewell & Patterson, L.L.P             California State University Foundation     Nissan North America, Inc.
The Bravo Foundation                     California Teachers Association            Northern Trust Giving Program
The California Endowment                 Callejo & Callejo Law Firm                 Occidental Petroleum Corp.
The Coca-Cola Company                    CBS WBBM-TV                                O’Melveny & Myers, LLP
The David & Katherine Moore Family       CBS2 / KCAL9                               Our Lady of the Lake University
  Foundation                             Chicago Community Trust                    Paul Hastings
David & Lucile Packard Foundation        Citigroup Business Services                Pepsi Cola Bottling Company
Exelon Corporation                       Coastal Securities LP                      Performing Arts Foundation
Fannie Mae Foundation                    ConocoPhillips, Inc.                       Perry & Haas, L.L.P.
Ford Motor Company                       Countrywide Home Loans, Inc.               Philip Morris Companies, Inc.

                                                                     CONTRIBUTING                     TO     MALDEF

Piper, Marbury, Rudnick & Wolfe            Norma Cantu                                 $250+
PipeVine, Inc.                             Antonia Castaneda & Arturo Madrid           Maria A. Berriozabal
Ramirez & Co. Inc.                         Arturo Jauregui                             Elena A. Alvarez
Ramona’s Food Products, Inc.               Deborah C. Kastrin                          Samuel Briones
Rangel Cosulting                           Helen L. Luna                               Alex Chaves
Reliant Energy                                                                         Ann Cohen
Relman & Associates                        $1,000+                                     Gordon Conway
Rose & Kindel                              Margarita J. Alcala                         R. Jason Dcruz
San Antonio Express News                   Barbara Aldave                              Marisa J. Demeo
San Francisco Foundation                   Edward J. Avila                             Ned Dickey, Jr.
Schieffelin & Somerset                     Jaime Davila                                Nancy Falk
Schiff Hardin & Waite                      David-Damian Figueroa                       Mark Fassold
SEIU Local 660                             Telemachus P. Kasulis                       Rose M. Fuenzalida
Seyfarth Shaw Attorneys                    Romulo & Roseanne Lopez                     Paul D. Gewitz
Shapleig For Senate Campaign               Enrique Moreno                              Barry Goldstein
Shared Services Group                      Augustina A. Reyes & Michael A. Olivas      Michael J. Hirschhorn
Sidley, Austin, Brown & Wood LLP           Ken Rosh                                    Paul Kleppner
Siegman Consulting                         Margaret P. Saenz                           Roger L. Kohn
Social & Health Research Center            Guadalupe Salinas                           Mark Lopez
Soza & Company LTD.                        Katherine Sugg                              Ray & Sylvia Lucero
St. Mary’s University School of Law        Diana M. Torres                             Gary & Kimberly Lutz
State Farm Insurance                       Ann Marie Wheelock                          Samuel M. Matchett
Strasburger & Price LLP                                                                John McCartney
Strumwasser & Woocher, LLP                 $500+                                       Samuel Mendenhall
TACHE                                      Xavier Becerra                              David Mendez
Taco Bell Corp. (YUM! Brands, Inc.)        Steven W. Brown                             Manuel O. Mendez
Texas A & M University Health              David & Marta Cerda                         Olivia F. Mercado
   Science Center                          Henry G. Cisneros                           Susana M. Navarro
Texas A&M University at Kingsville         Hector J. & Margaret M. Cuellar             Frank B. Olguin
Texas A&M University Foundation            John & Veronica Feehan                      Donald L. Pierce
Texas Association of Higher Education      Albert Gurulé                               Bonnie Podolsky
Trinity University                         Donald Hubert                               Francisco R. Razo
UFCW Local 881                             Robert & Eleanor Juceam                     Richard J. Rice
Union Bank of California                   Stephen Levy                                Manuel Sanchez
United Way of Lake Area                    Raymond Lightstone                          A.D. & Elenor Sellstrom
United Way of the Bay Area                 Francisco & Margarita Medina                Stuart K. Taussig
University of California Los Angeles       Bernard M. Murphy                           Michael Thompson
University of Chicago                      Gilbert Tauck                               Roland Anthony Ulloa
University of Houston                      Nancy & Steven Ttee                         Renato & Jeanne Velasquez
University of Notre Dame                   John G. Wymer, III                          James & Lisa Viveros
University of Southern California          Jaime E. Yordan                             Anna M. & Timothy J. Voortman
USAA Foundation                            Ronnie C. Zepeda                            Barbara B. Walker
Walgreens Company
Wal-Mart Foundation

                                             LUIS NOGALES PLEDGES $1 MILLION
Antonia Hernández & Hon. Michael L.                                            This year, Luis Nogales, one of the nation’s most
 Stern                                                                         prominent corporate leaders and Latino investors,
                                                                               pledged $1 million for the protection of immigrant
$25,000+                                                                       rights in a bequest to MALDEF.
Federico Jimenez
                                                                               “Millions of Latino immigrants are making
$10,000+                                                                       valuable contributions to our economy and society,
Nicholas R. Allis                                                              but they live and work unprotected by our laws
David & Katherine Moore                                                        and marginalized in participating in the life of our
Joseph A. Stern                                                                nation,” said Mr. Nogales. “We’re a nation of
                                                                               immigrants but it’s always taken great uphill effort
$5,000+                                                                        to secure the rights of new immigrants. This
Tom Reston                                                                     donation demonstrates my faith in the capacity of
Hector Cuellar                                                                 our institutions to give new Americans the full
Frank Quevedo                                                                  measure of their human and civil rights and the
Monica Lozano                                                                  opportunity to pursue the American Dream.”
$2,500+                                                                        MALDEF is deeply grateful to Mr. Nogales for the
Arthur Acevedo                                                                 largest gift by an individual in our history.
Morris J. Baller & Christine Brigagliano

                                                                      2002-2003 ANNUAL REPORT                                | 15
MALDEF Staff 2003 - 2003

NATIONAL OFFICE -                          Community Education and                   *Kristin J. Sekora
LOS ANGELES                                Leadership Program                        Director of Foundations and Grants
President's Office                         Parent School Partnership (PSP)           *Angelo Reyes
Antonia Hernández                          Program                                   Development Secretary
President and General Counsel              John Hurtado                              Finance and
                                           National PSP Director                     Administration
Marysol Benitez
Executive Secretary                        Manuel Huerta                             Robert Hettinger
                                           Belmont PSP Director                      V.P. of Finance and
Paul J. Vizcaino                                                                     Administration
Administrative Assistant                   Frank Molina
                                           National PSP Trainer

Legal Programs                             Norma A. Vega
                                                                                     Sylvia M. Jones
Vibiana Andrade                            PSP Trainer
                                                                                     Office Manager/MIS Coordinator
Vice President,                            Araceli Simeon-Luna
                                                                                     May Chung
Public Policy and                          Los Angeles PSP Director
                                                                                     Staff Accountant/Accounts Payable
Communications                             Mario A. Ruiz
                                                                                     Leticia R. Urquidi
                                                                                     Staff Accountant/General Ledger
Thomas A. Saenz                            *Erika Martinez
                                                                                     Jimmy Gallardo
Vice President,                            Los Angeles PSP Director
                                                                                     Human Resource Clerk
                                           *Claudia I. Monterrosa
                                                                                     Cleotilde Rodriguez
                                           National PSP Director
                                           Immigrant Higher Education                *RaChelle Williams
                                           Outreach                                  Human Resource Manager
Shaheena Ahmad Simons                      Maria Lucero Ortiz
                                           California Immigrant Higher               *Armando Martinez
Staff Attorney and Fried, Frank Fellow
                                           Education Outreach Director               Human Resource Clerk
Jimena S. Vasquez
Statewide Children Policy Analyst and      *Abigail Ramirez                          MALDEF Building Property
Outreach Director                          California Immigrant Higher               Management
                                           Education Outreach Director               Carlito C. Manasan
Victor Viramontes                                                                    Building Engineer
Staff Attorney, Litigation Project for     Development
Higher Education                           Rafael Ramirez                            *Albuquerque PSP Program
                                           V. P. of Development                      *Nieves G. Torres
Agustin Corral
                                                                                     PSP Director
Paralegal, Litigation Project for Higher
Education                                                                            *Nancy Sheppard
                                                                                     Program Office Secretary
Ramona I. Corral
Legal Secretary                            Javier Angulo                             Atlanta
                                           Associate Director of                     Tisha Tallman
Steven Ochoa
                                           Development                               Regional Counsel
National Demographic Researcher
                                           Lisa M. Ramos
                                           Associate Director of Special Events
J.C. Flores                                Adrienne Costello
National Director of                       Associate Director of Individual Giving
                                                                                     Jose Gonzalez
Communications                             Judy Orrante                              Staff Attorney
                                           Development Secretary
                                                                                     Diana S. Connerty
                                           Fermin Rodriguez                          Staff Attorney and Fried, Frank Fellow
                                           Development Secretary

                                                                   M A L D E F S TA F F 2 0 0 2 - 2 0 0 3

Gerardo E. Gonzalez                    Cynthia Rangel                          Leticia M. Saucedo
Public Policy Analyst                  Paralegal                               Staff Attorney
Josefina Prieto                        Lucy Silva                              Selena Solis
Legal Secretary                        Sr. Legal Secretary                     Staff Attorney
Blanca Rojas                           Maria Cabadas                           Joe Sanchez
PSP Director                           Legal Secretary                         Sr. Policy Analyst
Isabel Sance-Valverde                  *Phoenix Leadership                     Yolanda Reyes
Program Office Secretary               Development Program                     Paralegal
Chicago                                *Rudolfo H. Perez, Jr.                  Isabel Lopez Piña
Regional Office                        Director                                Sr. Legal Secretary
Patricia Mendoza                       *Maria Elena Durazo                     Carmen M. Leija
Regional Counsel                       Program Office Secretary                Legal Secretary
                                       Sacramento                              Linda P. Tavares
                                       Public Policy                           Litigation Clerk
Maria G. Valdez                        Office
                                                                               *Ernestine G. Morales
Senior Litigator                       Maria Blanco
                                                                               PSP Director
                                       National Senior
Alonzo Rivas                           Counsel                                 Washington D.C.
Staff Attorney                                                                 Public Policy
Ana Collazo                            Rita Durgin
Paralegal                              Legislative Secretary                   Marisa Demeo
Carmen R. Acevedo                                                              Regional Counsel
                                       Francisco Estrada
Senior Legal Secretary                 Sr. Public Policy Analyst
Irene Padilla                          Sarah O. Mercer                         Katherine M. Culliton
Receptionist                           Public Policy Analyst                   Staff Attorney
*Wamaid Mestey-Borges                                                          James Ferg-Cadima
                                       San Antonio
Legistative Staff Attorney                                                     Legislative Analyst
                                       Regional Office
Houston PSP Program                    Nina Perales                            Marie Watteau
Patricia I. Cabrera                    Regional Counsel                        Public Affairs/Policy Analyst
PSP Director                                                                   Nelly B. Valdes
Mary Alice Escobedo                                                            Administrative Assistant
Program Office Secretary               Joseph P. Berra                         *Aisha Qaasim
Los Angeles                            Staff Attorney                          Legistative Staff Attorney
Regional Office
Hector O. Villagra
Regional Counsel

Belinda Escobosa Helzer
Staff Attorney
Steve J. Reyes
Staff Attorney
Maureen Guadalupe Tellez
Staff Attorney

*Employee departed during the fiscal
year or program discontinued

Photos by George Rodriguez

                                                                   2002-2003 ANNUAL REPORT                     | 17
   MALDEF BOARD                         OF   DIRECTORS

Barbara Aldave                               Federico Jimenez                          Joseph A. Stern
Stewart Professor of Law                     Owner                                     Partner
University of Oregon                         FEDERICO                                  Fried, Frank, Harris, Shriver & Jacobson
Eugene, OR                                   Venice, CA                                New York, NY
Edward J. Avila                              Arnold J. Kleiner                         Peter Villegas
President                                    President and General Manager             First Vice President, Regional
Project Restore                              KABC Television Glendale, CA              Manager
Los Angeles, CA                                                                        Washington Mutual
                                             Teresa Leger de Fernandez
Zoë Baird                                    Partner                                   Los Angeles, CA
President                                    Nordhaus, Haltom, Taylor,                 Ann Marie Wheelock
The John and Mary R. Markle Foundation       Taradash & Bladh                          Senior Vice President
New York, NY                                 Santa Fe, NM                              Fannie Mae Western Region
Morris J. Baller                             Manuel Martinez                           Pasadena, CA
Partner                                      Partner                                   Sam Zamarripa
Goldstein, Demchak, Baller,                  Holme Roberts & Owen, LLP                 Candidate Georgia State House of
Borgen & Dardarian                           Denver, CO                                Representatives
Oakland, CA                                                                            Atlanta, GA
                                             Hon. Gloria Molina
Norma Cantu                                  Los Angeles County Board of Supervisors
Professor                                    Los Angeles, CA
University of Texas,
                                             Carlos X. Montoya
Austin School of Law
San Antonio, TX
                                             President and CEO
                                             Aztec America
                                                                                         2002-2003 Officers
Gilberto Cardenas                            Chicago, IL
Assistant Provost and Director
                                             Michael A. Olivas                                     Joseph A. Stern
Institute for Latino Studies
                                             Associate Dean
University of Notre Dame                                                                         FIRST VICE CHAIR:
                                             University of Houston Law Center
Notre Dame, IN                                                                                    Herlinda Garcia
                                             Houston, TX
Roberto Cruz
Corporate Affairs Director                   Don Pierce                                        SECOND VICE CHAIR:
AT&T Public Relations                        Independent Consultant                         Teresa Leger de Fernandez
Basking Ridge, NJ                            Henderson, NV
                                             Guadalupe Rangel                                   THIRD VICE CHAIR:
Hector J. Cuellar                                                                                   Al Gurulé
Managing Director                            Education Consultant
Bank of America Securities                   Corpus Cristi, TX
                                                                                            SECRETARY/TREASURER AND
Los Angeles, CA                              Thomas B. Reston                                FISCAL AND FUNDRAISING
Bette F. DeGraw                              Attorney at Law                                    COMMITTEE CHAIR:
Dean, College of Extended Education          Washington, D.C.                                    Hector J. Cuellar
Arizona State University                     Matt Rezvani
Tempe, AZ                                    Director of Local Government Affairs            PROGRAM AND PLANNING
                                             BP Corp.                                          COMMITTEE CHAIR:
Hon. Liz Figueroa                                                                               Thomas B. Reston
State Senator                                Los Angeles, CA
California State Senate                                   í
                                             José R. Rodr´ guez                            COMMUNITY EDUCATION AND
Sacramento, CA                               County Attorney                                LEADERSHIP DEVELOPMENT
Herlinda Garcia                              El Paso County, TX                            (CELD) COMMITTEE CHAIR:
Principal, J.P. Henderson School and         Maria Salda˜ a
                                                         ñ                                     Gilberto Cardenas
Trustee, Houston Community                   Senior Vice President
College System                               Ramirez & Co., Inc.
                                                                                          PERSONNEL AND NOMINATIONS
Houston, TX                                  Chicago, IL                                       COMMITTEE CHAIR:
                                                                                              Ann Marie Wheelock
Albert Gurulé                                Andrew Segovia
Owner/Manager                                Associate General Counsel,                      PRESIDENT AND GENERAL
Pueblo Community                             Latin America                                          COUNSEL:
Corrections/Southwest Medical                General Motors Corp.                                          a
                                                                                               Antonia Hern´ ndez
Pueblo, CO                                   Detroit, MI
Frank Herrera, Jr.                                                                           MALDEF PROPERTY
                                             Maritza Soto Keen
President                                                                                 MANAGEMENT GROUP CHAIR:
                                             Executive Director
The Law Offices of Frank Herrera, Jr.                                                         Frank Herrera, Jr.
                                             Latin American Association
San Antonio, TX                              Atlanta, GA

                                                                     INDEPENDENT AUDITOR’S REPORT

Board of Directors
Mexican American Legal Defense and Educational Fund
Los Angeles, California

I   have audited the accompanying combined statement of financial position of the Mexican American Legal Defense and
   Educational Fund (a nonprofit corporation), as of April 30, 2003, and the related combined statements of activities and
cash flows for the year then ended. These financial statements are the responsibility of the organization’s management.
My responsibility is to express an opinion on these financial statements based on my audit. Information for the year
ended April 30, 2002, is summarized and presented for comparative purposes only and was extracted from the financial
statements for that year, on which an unqualified opinion, dated July 11, 2002, was expressed.
I conducted my audit in accordance with U.S. generally accepted auditing standards. Those standards require that I plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
the Mexican American Legal Defense and Educational Fund as of April 30, 2003, and the changes in its net assets and its
cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.
My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The
schedule of functional expenses and the summary of program expenses accompanying the basic financial statements are
presented for additional analysis and are not a required part of those statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.

Michael W. Duran, C.P.A.

Fullerton, California
July 5, 2003

                   TOTAL PUBLIC                                 TOTAL EXPENSE                                   LEGAL EXPENSE
                     SUPPORT                                     ALLOCATION                                      ALLOCATION
                        Grants from Foundations         Fundraising & General                                           Other
                                                                                Legal Expenses
                                      and Trusts        Support                                                         $70,397 (2%)
                                                                                $2,847,715 (47%)    Higher Education                   Political Access
Individual and
                                      $1,999,648        $490,958 (8%)                               $362,338 (13%)
Corporate                                                                                                                              $670,544 (23%)
$1,569,236                                         Community                                       Public
(34%)                                              Education                                       Resource
                                                   $1,121,544                                      Equity
                                                   (18%)                                           $248,175

Special Events                                        Public Policy
                                                                                                                                        $567,703 (20%)
$1,041,549 (23%)                                      $1,617,436 (27%)
                                                                                                               Immigration Program
                                                                                                               $532,812 (19%)

                                                                                2002-2003 ANNUAL REPORT                                   | 19
 C O M B I N E D S TAT E M E N T                   OF     CASH FLOW
                                                                        2003              2002
                   Cash received from grants and contributions
                          for programs and supporting services     $ 3,068,389      $ 2,725,318
                              Cash received from special events      1,041,549          890,625
               Cash received from professional fees and awards         802,729          996,624
                                        Rental income received         279,942          449,381
                                  Interest and dividend income         203,615          277,383
                                          Miscellaneous income          90,451           97,187
                                                                     5,486,675        5,436,518
               Cash paid for programs and supporting services       (6,065,017)      (5,610,103)
               Cash paid for rental expenses, excluding interest      (422,996)        (457,467)
                                                   Interest paid       (35,490)         (96,889)
             Net Cash Provided (Used) By Operating Activities         (1,036,828)        (727,941)
                Net (additions) withdrawals from investments             15,850           335,627
                             Building & tenant improvements              (1,671)                -
                        Purchases of furniture and equipment            (64,444)          (75,059)
              Net Cash Provided (Used) By Investing Activities          (50,265)          260,568
                           Increase (decrease) in line of credit         46,046           (125,919)
                             Principal payments on SBA Loan              (5,786)            (6,086)
                         Principal payments on capital leases           (72,385)           (65,497)
                     Increase (decrease) in fiduciary accounts         (913,373)        (1,046,947)
                          Cash received for capital campaign            250,000             25,000
                    Endowments and other capital additions                    -                  -
              Net Cash Provided (Used) By Financing Activities         (695,498)        (1,219,449)
                                Net Increase (Decrease) In Cash       (1,782,591)       (1,686,822)
                                       Beginning Cash Balance         2,901,322         4,588,144
                                          Ending Cash Balance      $ 1,118,731      $ 2,901,322
                                 Change in net assets              $ (1,356,630)    $ (1,100,262)
                                        Capital additions              (250,000)          122,000
                           Depreciation and amortization                406,329           392,531
                                Investment (gains) losses               723,399           454,181
                                  (INCREASE) DECREASE IN:
                                    Grants & pledges receivable        (500,495)         (252,191)
                                           Accounts receivable          (40,955)         (234,520)
                                              Prepaid expenses          (49,977)          (11,827)
                                                      Deposits                -                 -
                                  INCREASE (DECREASE) IN:
                                             Accounts payable             7,026           (64,987)
                                             Accrued vacation            24,475            (2,208)
                                              Accrued interest                -                 -
                                       Accrued property taxes                 -           (27,870)
                                     Tenant and event deposits                -            (2,788)
             Net Cash Provided (Used) By Operating Activities      $ (1,036,828)    $    (727,941)
                                     FINANCING ACTIVITIES
             Write-off of uncollectible pledges upon termination
                               of Los Angeles Capital Campaign                      $    (122,000)

                                                             C O M B I N E D S TAT E M E N T              OF     ACTIVITIES
F O R T H E Y E A R S E N D E D A P R I L 3 0 , 2 0 0 3 , A N D 2 0 0 2 (With Summary Information for Prior Year)

                                                                        PERMANENTLY RESTRICTED
                                                              Temporarily             Rockefeller                 Total All Funds
                                         Unrestricted          Restricted  Endowment Prog. Reserve              2002           2001

Public Support
Grants from foundations and trusts       $    505,818          $ 1,493,830    $         –    $   –        $ 1,999,648      $ 2,337,640
Individual and corporate contributions        230,088            1,339,148              –        –             1,569,236      639,869
Capital Campaign                                         –        250,000               –        –              250,000       (122,000)
Special Events                               1,041,549                   –              –        –             1,041,549      782,570
Total Public Support                         1,777,455           3,082,978              –        –             4,860,433     3,638,079

Professional fees and awards                  682,025                    –              –        –              682,025      1,366,824
Net rental income (loss)                      (392,102)                  –              –        –             (392,102)      (264,875)
Interest income                               121,119                    –              –        –              121,119        152,611
Dividend income                                82,496                    –              –        –               82,496       124,772
Investment gains (Losses)                     (700,416)                  –        (22,983)       –             (723,399)      (454,181)
Other income (expense)                         90,451                    –              –        –               90,451         97,187
Total Revenue                                 (116,427)                  –        (22,983)       –             (139,410)     1,022,338

Total Support & Revenue                      1,661,028           3,082,978        (22,983)       –             4,721,023     4,660,417

Net Assets Released from Restrictions        3,413,811          (3,413,811)             –        –

Program Services
Litigation                                   2,847,715                   –              –        –             2,847,715     2,526,880
Public policy and research                   1,617,436                   –              –        –             1,617,436     1,771,796
Community education and services             1,121,544                   –              –        –             1,121,544      896,830
Total Program Services                       5,586,695                   –              –        –             5,586,695     5,195,506

Supporting Services
Management and general                        183,606                    –              –        –              183,606       195,828
Fundraising and special events                307,352                    –              –        –              307,352       369,345
Total Supporting Services                     490,958                    –              –        –              490,958       565,173

Total Expenses                               6,077,653                  –               –        –             6,077,653     5,760,679

Change in Net Assets                      (1,002,814)            (330,833)        (22,983)       –          (1,356,630)     (1,100,262)

Net Assets at Beginning of Year              7,371,702          5,094,163         299,389    1,608,905      14,374,159      15,474,421

Net Assets at End of Year                $ 6,368,888           $ 4,763,330    $ 276,406      $1,608,905   $ 13,017,529     $14,374,159

                                                                              2002-2003 ANNUAL REPORT                              | 21
 C O M B I N E D S TAT E M E N T                              OF    FINANCIAL POSITION
 A P R I L 3 0 , 2 0 0 3 (With Summary Information for Prior Year)

                                                                              PERMANENTLY RESTRICTED
                                                                    Temporarily             Rockefeller                       Total All Funds
                                                     Unrestricted    Restricted  Endowment Prog. Reserve                    2002           2001

 Cash and cash equivalents                       $      369,498     $    442,129    $ 250,000         $     57,104    $ 1,118,731       $ 2,901,322
 Investments                                           3,024,860        2,718,951            26,406       1,551,801        7,322,018         8,061,271
 Accounts receivable                                    561,659                 –                –               –          561,659           520,704
 Grants and pledges receivable                                –         1,602,250                –               –         1,602,250         1,101,755
 Prepaid expenses                                        76,829                 –                –               –           76,829            26,852
 Deposits                                                40,930                 –                –               –           40,930            40,930
 Land and building                                   10,064,565                 –                –               –        10,064,565        10,062,894
 Furniture and equipment                               1,282,686                –                –               –         1,282,686         1,218,242
 Law library                                            217,499                 –                –               –          217,499           217,499
 Less: accumulated depreciation                      (3,543,012)                –                –               –        (3,543,012)       (3,136,684)
 Total Assets                                    $ 12,095,514       $ 4,763,330     $ 276,406         $ 1,608,905     $ 18,744,155      $21,014,785

 Accounts payable                                $      148,058             $   –       $        –           $   –    $     148,058     $     141,032
 Accrued vacation                                       150,197                 –                –               –          150,197           125,722
 Deposits                                                 7,267                 –                –               –            7,267             7,267
 Line of credit                                         398,511                 –                –               –          398,511           352,465
 Capital lease obligations                              107,070                 –                –               –          107,070           179,455
 Note payable, small business admin.                    115,526                 –                –               –          115,526           121,312
 Construction loan payable, CRA                        4,800,000                –                –               –         4,800,000         4,800,000
 Fiduciary accounts                                           –                 –                –               –                 –          913,373
 Total Assets                                    $ 5,726,629                $   –       $ 276,406            $   –    $ 5,726,629       $ 6,640,626

 Designated for litigation reserve               $       44,775     $           –   $            –    $          –    $      44,775     $      53,849
 Undesignated                                          3,210,462                –                –               –         3,210,462         3,870,420
 Plant fund                                            3,113,648         250,000                 –               –         3,363,648         3,447,433
 Restricted by donors                                         –         4,513,330           276,406       1,608,905        6,398,641         7,002,457
 Total Net Assets                                $ 6,368,885        $ 4,763,330     $ 276,406         $ 1,608,905     $ 13,017,526      $14,374,159

 Total Liabilities and Net Assets                $ 12,095,514       $ 4,763,330     $ 276,406         $ 1,608,905     $ 18,744,155      $21,014,785

 See the accompanying notes and accountant’s report.

                                                                                     NOTES                    TO         F I N A N C I A L S TAT E M E N T S

MEXICAN AMERICAN LEGAL DEFENSE                              assumptions that affect certain reported amounts and                    All investment income, including interest, dividends,
AND EDUCATIONAL FUND                                        disclosures. Accordingly, actual results could differ                   and gains and losses (both realized and unrealized),
NOTES TO FINANCIAL STATEMENTS                               from those estimates.                                                   is reported as unrestricted unless specifically
APRIL 30, 2003                                                                                                                      restricted by the donor.
                                                            Property and Equipment
                                                            Purchases of land and building, furniture, fixtures,                    For the year ended April 30, 2003, the net investment
NOTE A - ACCOUNTING PRINCIPLES                              equipment, and capitalized additions to the law library, if             losses of $723,399 reported in the combined statement
AND POLICIES                                                any, are recorded at cost. Property and equipment received              of activities include net realized losses of $162,754
The financial statements of the Mexican American            as donations are recorded at estimated fair market value.               and investment fees of $49,573.
Legal Defense and Educational Fund (MALDEF),
have been prepared on the accrual basis of                  Depreciation of property and equipment is calculated                    NOTE D - GRANTS AND PLEDGES
accounting. The following summary of significant            using the straight-line method over the estimated useful                RECEIVABLE
accounting principles and policies is presented to          lives of the assets. (See Note E.)                                      Grants and pledges receivable consist of formal
enhance the usefulness of the financial statements to       Investments                                                             grants and other unconditional promises to give to
the reader.                                                 MALDEF accounts for and presents its investments in                     the organization. The scheduled collection of grants
Nature of Activities                                        marketable securities in accordance with SFAS No.                       and pledges receivable at April 30, 2003, is as follows:
MALDEF is a national nonprofit organization that            124, “Accounting for Certain Investments Held by                        Scheduled to be received within one year         $1,264,750
seeks to promote and protect the civil rights of            Not-for-Profit Organizations.” Under SFAS No. 124,                      Scheduled to be received over two to five years     337,500
Hispanics in the areas of education, employment,            the organization is required to report its investments
                                                            in marketable securities at fair market value and,                                                                      $1,602,250
voting rights, immigration and language issues.
MALDEF also administers scholarships for Hispanic           accordingly, recognize currently all gains and losses
                                                            both realized and unrealized. (See Note C.)                             NOTE E - PROPERTY AND EQUIPMENT
law students and conducts leadership development                                                                                    Property and equipment as of April 30, 2003, and the
and community education programs.                           Income taxes                                                            estimated lives used for depreciation are summarized
MALDEF is headquartered in Los Angeles and has              MALDEF is exempt from income taxes under Section                        as follows:
regional offices in Chicago, San Antonio, Atlanta and       501(c)(3) of the Internal Revenue Code and under
Washington D.C., and satellite offices in Sacramento        Section 23701d of California’s Revenue and Taxation                                                   or Basis      Useful Life
and Houston.                                                Code. Therefore, provisions for Federal and State
                                                                                                                                                     Land         $660,000            N/A
                                                            income taxes are not required on income related to
Revenue and Expense Recognition                             the organization’s exempt purpose.                                        Building (including
Public support is recognized as it is received or when                                                                              total renovation costs
an unconditional promise to give has been made to           Accrued Vacation (Personal Leave)                                           of $6,186,858 plus
                                                            Personal leave may be used by all MALDEF full-time                       tenant improvement
the organization. Revenue is recognized as it accrues                                                                                   costs of $676,036)       9,404,565           40 Yrs.
and expenses are recognized as they are incurred.           employees for any purpose, including vacations and
                                                            illnesses. Personal leave is earned as follows:                                   Furniture &
Donated assets other than cash are recorded when                                                                                               equipment         1,282,686         5-10 Yrs.
received at their estimated fair market value.                 *Employees hired before January 5, 1996, accrue 20                             Law library          217,499           10 Yrs.
Support restricted by the donor to a specific program          work days per year the first two years of
or for a specific period is reported as an increase in                                                                                                         $11,564,750
                                                               employment and 25 days thereafter.
temporarily restricted net assets. Endowments and                                                                                   Depreciation expense for non-building related furniture,
other nonspendable grants are reported as increases            *Employees hired after January 5, 1996, accrue 20                    fixtures, equipment, law library, and leasehold
in permanently restricted net assets. As the funds are         work days per year the first four years of                           improvements for the current year was $170,215 and is
released from their restrictions, they are reported as a       employment and 25 days thereafter.                                   allocated within program and supporting services
transfer to unrestricted net assets. All investment         All employees will cease to earn personal leave if                      expenses. Depreciation expense for the building and the
income, including interest, dividends, gains and            their personal leave balance exceeds their yearly                       related furniture, fixtures, and equipment was $236,114
                                                            allotment minus 5 days. Rights to payment of any                        and is included in the net rental loss shown in the
losses, is recognized as unrestricted unless
                                                                                                                                    combined statement of activities.
specifically restricted by the donor. All program and       unused personal leave at termination vest at the
supporting expenses are reported as reductions in           outset of employment. Liability for unused                              NOTE F - ROCKEFELLER PROGRAM
unrestricted net assets.                                    vacation/personal leave is accounted for in                             RESERVE FUND
                                                            accordance with Statement of Financial Accounting                       In May 1988, MALDEF received a special stabilization
Financial Statement Presentation
                                                            Standards No. 43, “Accounting for Compensated                           grant from The Rockefeller Foundation in support of
MALDEF presents its financial statements in
                                                            Absences,” promulgated by the Financial Accounting                      its litigation activities and establishing a program
accordance with Statement of Financial Accounting
                                                            Standards Board.                                                        reserve fund endowment of $736,963. In April 1994
Standards (SFAS) No. 117, “Financial Statements for
Not-for-Profit Organizations.” Under SFAS No. 117, the                                                                              and January 1999 the Foundation increased its grant
                                                            NOTE B - CASH AND CASH EQUIVALENTS                                      to the reserve fund, adding $371,942 and $500,000,
organization is required to report information
                                                            Cash and equivalents at April 30, 2003, were as                         respectively, to the endowment.
regarding its financial position and activities according
to three classes of net assets: unrestricted net assets,                                 MALDEF Fiduciary                           To-date, the Foundation’s nonspendable additions to
temporarily restricted net assets, and permanently                                         Funds     Accounts     Total             the program reserve fund total $1,608,905, and are
restricted net assets.                                                      Petty cash      $ 3,672             $ 3,672             reported as a permanent endowment in support of
In order to ensure observance of limitations and            General savings & checking       702,820             702,820            MALDEF’s litigation activities.
restrictions placed on the use of resources available to         Money market funds &
MALDEF, its internal accounts continue to be                       other cash equivalents 351,634        0     351,634              NOTE G - LINE OF CREDIT
maintained in accordance with the principles of fund            Certificates of deposit      60,605              60,605             The organization has an unsecured revolving line of
accounting. Resources for various purposes are                                            $1,118,731    $0    $1,118,731            credit of $1,000,000, of which $600,000 was unused at
classified for internal accounting purposes into funds                                                                              April 30, 2003. Bank advances on the credit line are
established according to their nature and purpose.          The amount of cash placed with financial institutions                   payable on demand and carry an interest rate equal
                                                            and in excess of federally insured limits at April 30,                  to the bank’s prime rate (4.25% as of April 30, 2003).
Contributions                                               2003, was $464,846.
MALDEF accounts for the contributions it receives in                                                                                NOTE H - FIDUCIARY ACCOUNTS
accordance with SFAS No. 116, “Accounting for               NOTE C - INVESTMENTS                                                    MALDEF is often selected to act as the custodian of
Contributions Received and Contributions Made.”             Investments, which consist of publicly traded                           funds raised in certain collaborative efforts of other
Under SFAS No. 116, the organization recognizes             marketable securities, are stated at fair market value.                 nonprofit organizations. As the fiscal agent for these
contributions at the time they are pledged. Accordingly,    The cost and market values of investments at April                      cooperative programs, MALDEF holds donated
pledges receivable as of the end of each period are         30, 2003, were as follows:                                              funds in trust to be paid out as directed by the
included in the recognized public support for the period,                                                                           participating organizations. As of April 30, 2003,
which is categorized as unrestricted, temporarily                                           Cost      Market        Unrealized
                                                                                                                           G(L)     there were no outstanding funds held in trust.
restricted, or permanently restricted depending on the
existence and nature of any donor restrictions.              U.S. Treasury notes & funds $1,068,720    $1,196,961        $128,241
                                                                     Other fixed income 968,999        1,067,108          98,109    NOTE I - COMMITMENTS AND
Estimates                                                                                                                           CONTINGENCIES
                                                                        Common stocks 4,107,171        4,814,087         706,916
The preparation of financial statements in conformity                                                                               Employee Health Insurance Plan
                                                                           Mutual funds 386,012          243,862       (142,150)
with generally accepted accounting principles                                                                                       MALDEF offers all full-time employees, effective on
                                                                                        $6,530,902    $7,322,018        $791,116    the first day of the month following employment, a
requires management to make estimates and

                                                                                                           2002-2003 ANNUAL REPORT                                                    | 23
    NOTES               TO       F I N A N C I A L S TAT E M E N T S

comprehensive choice health insurance plan at no         operating the newly acquired office building housing       believes no further draws will be required. If no further
cost to the employee, with 100% coverage for in-         its national office in Los Angeles. The name of this       amounts are drawn, the current principal balance of
network services. The monthly premiums paid by           sponsored corporation is “MALDEF Property                  $115,526 will be fully amortized by January, 2017.
MALDEF for individuals and families range from           Management Corp.” (MPMC).
                                                                                                                    Summary of Loan Maturities
$250 to $800, respectively.                              The assets, liabilities, and net income of MPMC are        Principal payments under the pending CRA repayment
Operating Leases                                         combined with MALDEF’s in the combined financial           plan and the SBA note are scheduled as follows:
MALDEF leases the office facilities at each of its       statements. The net income or loss from the
regional and satellite locations. In addition, MALDEF    building’s rental operations is presented as a single      Year Ending      Construction         SBA
leases various items of office equipment used at these   item of revenue in the combined statement of               April 30,           Loan              Loan        Total
locations and its national headquarters. As of April     activities. All intercompany revenue and expense
                                                                                                                    2004                   $560,000      $6.442   $566,442
30, 2003, the future minimum rentals due under these     items have been eliminated.
                                                                                                                    2005                    280,000       6,705    286,705
operating leases were as follows:                        The following information describes the nature and
                                                                                                                    2006                    280,000       6,978    286,978
   Year Ended                                            activities of MPMC, and provides details regarding
     April 30,           Facilities       Equipment      certain items combined under MALDEF’s plant fund.          2007                  2,280,000       7,263 2,287,263
         2004            $299,020             $94,867                                                               2008                    280,000       7,559    287,559
                                                         Nature of Activities (MPMC)
         2005             213,035              77,243    MPMC is a California public benefit corporation,           Thereafter            1,120,000      80,579 1,200,579
         2006             124,584              38,070    formed on May 3, 1991. Its purpose is to own and                                $4,800,000    $115,526 $4,915,526
         2007              39,654              15,717    operate the building housing MALDEF’s national
                                                                                                                    Income Taxes (MPMC)
                                                         headquarters in Los Angeles, providing lease space
         2008                   0               5,680                                                               MPMC is exempt from income taxes under Section
                                                         exclusively to governmental agencies and
                         $676,293            $231,577                                                               501(c)(3) of the Internal Revenue Code and under
                                                         organizations which are tax-exempt under Section
                                                                                                                    Section 23701d of California’s Revenue and Taxation
                                                         501(c)(3) of the Internal Revenue Code.
Rent expense for the current year was $322,103, and                                                                 Code. Accordingly, provisions for Federal and State
equipment rental was $106,354. Both have been            Construction Loan Payable, CRA (and contingent             income taxes are not required on income related to
appropriately allocated among both program and           interest accrual)                                          the Organization’s exempt purpose.
supporting services.                                     On June 4, 1992, MPMC entered into an “Owner               Pursuant to the Internal Revenue Service’s
                                                         Participation and Loan Agreement” with The                 determination letter, MPMC is to lease space
Capital Leases                                           Community Redevelopment Agency of the City of Los
MALDEF leases a substantial amount of its computer                                                                  exclusively to governmental agencies and
                                                         Angeles (the “CRA”) in connection with MPMC’s              organizations which are exempt under Section 501(c)(3)
systems under two capital leases. The economic           renovation project. In accordance with the agreement,
substance of these leases is that MALDEF is financing                                                               of the Internal Revenue Code and which are dedicated
                                                         the CRA provided construction financing of $4,500,000.     to serving the minority communities within the inner
the acquisition of the systems through them, and
accordingly, the computer systems are recorded as        The CRA’s construction loans are currently presented       city of Los Angeles. The organization’s activities go
assets and the lease obligations as liabilities.         on MALDEF’s balance sheet at $4,800,000, consisting of     beyond merely acting as landlord, and extend to
                                                         a “commercial rehabilitation loan” for $2,000,000 and a    facilitating and assisting the programs carried on by its
As of April 30, 2003, the cost basis and accumulated     “residual receipts loan” of $2,500,000 plus accrued        tenants and providing common facilities for their use.
depreciation for these computer systems were             interest of $300,000 through August 1, 1996.               In addition, MPMC will require its tenants to
$352,052 and $246,435, respectively, and are included                                                               participate in a joint council to coordinate their
in MALDEF’s property and equipment.                      On June 28, 2002, the City Council approved a fee-for-
                                                                                                                    activities to best serve the community.
                                                         service repayment plan for the $2,800,000 residual
As of April 30, 2003, the future minimum rentals due     receipts loan over ten years and a waiver of the annual    Due to MALDEF
under these capital leases were as follows:              3.0% interest ($60,000) on the commercial rehabilitation   MALDEF assisted MPMC throughout its development
                      Year Ended                         loan until 2006. Under this plan, expenditures by          stage and initial operations with short-term operating
                        April 30,                        MALDEF on its educational and healthcare outreach          advances required to meet both operating and capital
                                                         programs in the City of Los Angeles, above an              campaign expenses. As of April 30, 2003, the unpaid
                             2004             $82,460
                                                         established baseline, together with all lease subsidies    balance of these advances was $249,310.
                             2005               26,640   by MPMC to its nonprofit tenants, will be credited
                                                                                                                    In July 1995, MALDEF’s board of directors
        Total minimum payments                109,100    toward repayment of principal on the residual receipts
                                                                                                                    unanimously approved a -0-% interest rate on all
                                                         loan and interest on the commercial rehabilitation
    Amount representing interest               (2,030)                                                              loans made to MPMC.
                                                         loan. No principal payments will be required on the
      Present value of payments              $107,070    commercial rehabilitation loan until 2006.                 Leasing Operations
                                                         In the CRA’s draft agreement dated May 2, 2003,            MPMC leases the office space of its entire building
Capital Campaign                                                                                                    under operating leases for varying terms and rates per
MALDEF has embarked on a new capital campaign            interest of $791, 036 (accrued from August 1, 1996
                                                         through April 30, 2002) has been added to the residual     square foot. As of April 30, 2003, the building is rented
program to acquire a permanent facility for its                                                                     out at seventy-five percent (75%) of capacity. Its
Washington D.C. regional office. Until a building is     receipts loan. MALDEF’s management does not agree
                                                         with this addition of interest and is negotiating the      rentable square footage is leased under operating leases
acquired, contributions to this capital campaign are                                                                providing for future minimum rentals as follows:
considered temporarily restricted and held within        elimination or reduction of the accrual. Should the
MALDEF’s Plant Fund.                                     CRA’s understanding prevail, in whole or in part,                  Year Ending
                                                         MALDEF will recognize in its financial statements the                 April 30,                               Total
Commitments Under Construction Loan Payable to           appropriate accrual of interest.                                         2004                             $107,171
CRA (See Note K.)
                                                         MALDEF has guaranteed the CRA loan plus all                              2005                              111,830
NOTE J - RETIREMENT PLAN                                 accrued interest.                                                        2006                              116,490
On May 1, 1991, MALDEF adopted a defined                 Note Payable, Small Business Administration                              2007                              121,150
contribution tax-deferred annuity plan in accordance     On May 10, 1995, the Small Business Administration                                                        $456,641
with rules provided under Section 403(b) of the          (SBA) authorized a loan to MPMC of up to $189,700
Internal Revenue Code. The plan covers all MALDEF        to repair damages caused by the January 1994               NOTE L - RESTRICTIONS ON NET ASSETS
employees as they become eligible to participate.        Northridge earthquake. Interest on amounts                 Temporarily restricted net assets consist of donations
Under the plan, employees may elect to contribute a      borrowed is at 4.0% per annum. Monthly payments            earmarked for specific programs or to be utilized
percentage of their gross salary up to a statutory       of $913, principal and interest, began October 18,         over a designated period. Included in this amount as
maximum. MALDEF makes a matching contribution            1995, and are to continue at the same amount on any        of April 30, 2003, is $2,360,000 earmarked for
of the first four percent (4.0%) of an employee’s        remaining balance through the full 30-year term of         Affirmative Action and scheduled for release evenly
elective contribution.                                   the note, which matures on May 18, 2025.                   over the next two fiscal years through April 2005. The
MALDEF’s matching contributions for the current          The note is secured by deed of trust but is                balance of $2,153,330 is earmarked for other
year were $55,981.                                       subordinate to the CRA construction loans. MALDEF          programs and uses and is also scheduled for release
NOTE K - COMBINED FINANCIAL                              has guaranteed the note.                                   over the next two fiscal years.
STATEMENTS                                               Through April 30, 1999, $160,500 had been drawn on         Permanently restricted net assets consist of
On May 3, 1991, MALDEF formed a California               the note, leaving an additional $29,200 available. No      endowment and other nonspendable funds to be held
corporation for the purpose of holding title to and      additional funds have been drawn and management            in perpetuity or for an extended period.

ABOUT THE COVER ARTIST                                       OTHER ACKNOWLEDGEMENTS
José Ramirez                                                 Writer/Producer                                           J.C. Flores
José Ramirez is an artist and teacher who was born and       National Director of Communications
lives in Los Angeles. He has been teaching for 10 years in   Editor
the South Central, East L.A. and Pico-Union neighbhoods      Vibiana Andrade
of Los Angeles, and his work as an artist has taken him to   Vice President of Public Policy and Communications
New York, Japan, San Francisco, Washington, D.C. and         Graphic Design and Printing by
Mexico. He received his teaching credential from Cal State   Chenoah Mickalites
Los Angeles and a BFA and MFA in Art from U.C.               Macson Printing and Lithography
“My paintings combine references to history and culture
to provide a context for understanding the contemporary
issues we face. I try to comment on these struggles while
visualizing the hopes and dreams of our community.”

Paintings by
Manuel Abril
Irene Carranza
Yolanda Gonzalez
Cristian Guerrero
Olivia Villanueva

Photography by
George Rodriguez
Teryl Jackson                                                                                         “Two Guitars in Love”
                                                                                                        OLIVIA VILLANUEVA
MALDEF Offices
LOS ANGELES                      REGIONAL OFFICE
REGIONAL OFFICE                  1717 “K” St., NW, Suite #311
634 S. Spring. St., 11th Floor   Washington, DC 20036
Los Angeles, CA 90014            (202) 293-2828
(213) 629-2512                   FAX (202) 293-2849
FAX (213) 629-0266
                                 SACRAMENTO PUBLIC
41 Marietta St., Suite #1000     926 “J” St., Suite #422
Atlanta, GA 30303                Sacramento, CA 95814
(678) 559-1071                   (916) 443-7531
FAX (678) 559-1079               FAX (916) 443-1541

188 W. Randolph St.,             Ripley House
Suite #1405                      4410 Navigation, Suite #229
Chicago, IL 60601                Houston, TX 77011
(312) 782-1422                   (713) 315-6494
FAX (312) 782-1428               FAX (713) 315-6404

140 E. Houston St., Suite #300
San Antonio, TX 78205
(210) 224-5476
FAX (210) 224-5382

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