Is it unconstitutional to use referenda in funding decisions?

The answer depends upon the type of funding decision to be made by referendum. A critical distinction exists between the use of referenda to determine a group's eligibility to receive funds and the use of referenda to determine the amount of funds allocated to a group that has already been deemed eligible. Although the distinction may seem pedantic, the difference is of the utmost significance.

If in order to be eligible for funding a group had to win majority support in a referendum, it is easy to see how minority and unpopular viewpoints would be discriminated against. So, it is clear that referenda as a means of determining eligibility for funding are inappropriate. However, when a referendum is used to determine or advise the amount of an allocation for a group or activity, then the referendum can serve as a legitimate measure of the number or amount of services to be provided by the group.

It is a common sense notion that the amount of funds allocated should be a function of the ... more.

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