Day: September 26, 2016

Leak of John Doe Documents Being Looked at by AG

In what appears to be a targeted leak aimed at Gov. Walker, the Guardian US published sealed Wisconsin court documents from the controversial John Doe investigation. It has been reported that over six million records were seized in the politically driven investigation. The leak involved 1,350 records.

Assembly Speaker Robin Vos and other GOP leaders requested Attorney General Brad Schimel appoint a special prosecutor to “investigate this apparent violation of Supreme Court order and state law.” TheSeptember 15 letter notes that “should this potential crime go unprosecuted it runs the risk of undermining the integrity of our courts and judicial system.”

In an interview posted on September 23, Schimel noted that DOJ does not have the power to appoint a special prosecutor on its own. That authority resides in the courts, particularly the judge overseeing the John Doe.

In a related development, the Wisconsin Democracy Campaign filed a formal complaint with the IRSalleging that Wisconsin Club for Growth violated IRS regulations. The complaint alleges that the group engaged in deceptive and improper fundraising practices and that engaging in political campaigns was its “primary activity” that contravened the group’s tax-exempt status.

AG Schimel Files Complaint Against New DOL Overtime Rule

On Sept. 20, Wisconsin Attorney General Brad Schimel joined a bipartisan coalition of states in filing a federal complaint against the U.S. Department of Labor’s new overtime rule. The complaint cites federal overreach by DOL and asks the court to prevent implementation of the rule before it is scheduled to take effect on Dec. 1.

The rule, released in late May, would double the salary threshold for “white collar” workers who are exempt from overtime pay from $23,660 to $47,476. According to the rule, the new threshold will automatically increase every three years. DOL estimates the threshold will be $51,168 in 2020. Once implemented, the changes would impact 4.2 million salaried workers.

Business groups say the new rule will force millions of salaried professionals to be reclassified as hourly wage workers. They argue that small businesses, nonprofits, and public sector employers will be especially hurt. The U.S Department of Labor estimates businesses will end up paying workers an additional $1.3 billion a year.

In its fact sheet explaining the rule, DOL provides businesses a “choice” under the new rule:

  1. Increase their employees’ salaries to the $47,476 threshold.
  2. Pay workers the time-and-a-half overtime premium for every hour beyond 40 per week.
  3. Limit workers to a 40-hour work week.

Some groups assert that market considerations over time will prove the paycheck benefits an illusion. To curb costs, some businesses will simply forbid employees from working over 40 hours. They may also have to cut back other expenses such as non-cash benefits or suppress the base pay itself.

Wisconsin joins 20 other states in this complaint, which was filed in Texas on Tuesday, including Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas and Utah.

Department of Justice Submits Budget Request

Attorney General Brad Schimel submitted the Department of Justice (DOJ) 2017-19 budget request to Governor Walker on September 15, 2016. Including all funding sources, DOJ’s request is a 6.2 percent increase over the base fiscal year (2016-17) doubled. This increase amounts to $6.6 million in new general purpose revenue (GPR) over the biennium.

The largest cost drivers for the additional funding request are due to legislation that passed in the 2015-2016 session. 2015 Wisconsin Act 388 provided a funding increase to county grants for the Treatment Alternative and Diversion (TAD) program. The TAD program provides options for offenders for voluntary substance abuse treatment, case management, and other services, instead of incarceration. DOJ’s budget request includes $2 million in each year of the biennium to expand the TAD program.

DOJ’s budget request includes $1.5 million over the biennium for the cost-to-continue of overtime and training for local and state Internet Crimes Against Children (ICAC) taskforces. The additional investment for ICAC taskforces and staff is a result of 2015 Wisconsin Act 369, otherwise known as Alicia’s Law.

In addition to additional funding, DOJ’s request establishes an appropriation for new officer training and officer recertification training reimbursement to local law enforcement agencies. DOJ states that this change will ensure the training reimbursements are fully funded going forward.

Outside of his agency’s budget, Attorney General Brad Schimel asks in his budget letter that the governor address the staffing levels and compensation for District Attorneys. The District Attorneys submitted a separate budget request that included funding for a pay progression for assistant attorney generals and adds 96.3 positions across the state.