Supreme Court grapples with governor’s 400-year veto, calling it ‘crazy’
U.S. Court News
Justices on the Wisconsin Supreme Court said Wednesday that Gov. Tony Evers’ creative use of his expansive veto power in an attempt to lock in a school funding increase for 400 years appeared to be “extreme” and “crazy” but questioned whether and how it should be reined in.
“It does feel like the sky is the limit, the stratosphere is the limit,” Justice Jill Karofsky said during oral arguments, referring to the governor’s veto powers. “Perhaps today we are at the fork in the road ... I think we’re trying to think should we, today in 2024, start to look at this differently.”
The case, supported by the Republican-controlled Legislature, is the latest flashpoint in a decades-long fight over just how broad Wisconsin’s governor’s partial veto powers should be. The issue has crossed party lines, with Republicans and Democrats pushing for more limitations on the governor’s veto over the years.
In this case, Evers made the veto in question in 2023. His partial veto increased how much revenue K-12 public schools can raise per student by $325 a year until 2425. Evers took language that originally applied the $325 increase for the 2023-24 and 2024-25 school years and instead vetoed the “20” and the hyphen to make the end date 2425, more than four centuries from now.
“The veto here approaches the absurd and exceeds any reasonable understanding of legislative or voter intent in adopting the partial veto or subsequent limits,” attorneys for legal scholar Richard Briffault, of Columbia Law School, said in a filing with the court ahead of arguments.
That argument was cited throughout the oral arguments by justices and Scott Rosenow, attorney for Wisconsin Manufacturers & Commerce Litigation Center, which handles lawsuits for the state’s largest business lobbying group and brought the case.
The court should strike down Evers’ partial veto and declare that the state constitution forbids the governor from striking digits to create a new year or to remove language to create a longer duration than the one approved by the Legislature, Rosenow argued.
Finding otherwise would give governors unlimited power to alter numbers in a budget bill, Rosenow argued.
Justices appeared to agree that limits were needed, but they grappled with where to draw the line.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.