Ruling causes $200 million state deficit - WAOW - Newsline 9, Wausau News, Weather, Sports

Ruling causes $200 million state deficit

MADISON, Wis. (AP) -- A ruling by the Wisconsin Supreme Court has blown a $200 million hole in the state budget.

The court ruled Tuesday that a $200 million transfer out of a medical malpractice fund to help balance the budget in 2007 was illegal. The court in a 5-2 ruling overturned a lower court's decision dismissing the lawsuit by the Wisconsin Medical Society.

The society, which represents doctors argued the transfer amounted to an illegal raid by the state and the Supreme Court agreed. The fund is used to help Wisconsin health care providers pay medical malpractice claims.

A Dane County judge dismissed the case in 2008, but the Medical Society appealed. The Supreme Court on Tuesday sent the case back to circuit court with directions that it order the state to pay back the money with interest.

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