Policy-making in Wisconsin and across the country could feel the effects of the Enron scandal, state officials say.
Congress’ General Accounting Office is expected to proceed with a lawsuit against the White House, citing its refusal to release the names of Enron Corp. executives who are said to have given advice to President Bush on his energy proposal.
Enron Corp., which recently filed for bankruptcy, was a major financial contributor to the Republican campaign.
U.S. Rep. Tammy Baldwin, D-Wis., said she expects the Enron scandal and contributions to campaigns at the federal and state level to have many affects on future policy making.
“We don’t want private interests writing our laws,” she said. “At the state level, it is likely that you will see debates over issues such as pension security and campaign-finance reform.”
Enron’s pension security plan allowed employees to plan for retirement, but insisted that much of the money be put into the company’s own stock. The stock plummeted after word of the company’s financial trouble spread, and employees lost their money.
Workers in Wisconsin could be as vulnerable to losses at their own company and are likely to see a push for bills that require more diversity in the plans so the same problems can be avoided, legislators say.
Those in favor of the lawsuit by the GAO also see the Enron scandal as another sign of the need for campaign-finance reform. Enron not only gave large amounts of money to leading federal politicians from both parties, but also aided state representatives.
“The bottom line is, there is a lack of campaign-finance reform,” state Sen. Fred Risser, D-Madison, said. “The money is still unreasonably significant. When you get right down to it, reform is essential.”
State Rep. Al Ott, R-Brillion, said passing any type of reform bill on the state level is still unlikely.
“I suspect Enron makes people think more about [campaign finance],” he said. “But it has been around before and it will be around again. We are focusing more on issues that affect our state, such as corporate etiquette.”
Jay Heck, executive director of Common Cause, a non-partisan public interest organization, said the Enron scandal has pushed campaign-finance reform to the forefront on a national level, and along with the caucus scandals within the state, has increased its importance in Wisconsin.
“It is a perfect example of how huge amounts of money have a corrupting influence,” he said. “It has taken [campaign-finance reform] from the back burner to front and center on the agenda.”
UW-Madison political science professor Jeff Coleman agreed, but offered skepticism.
“[Enron] has given reform a real boost in the House, but it has not moved President Bush into an active sponsor,” he said. “The key is to get Bush behind this. The issue keeps coming up but not going anywhere.”
Risser said the Bush administration’s alleged involvement with Enron has greater influence on the public’s perception of government.
“The general public tends to look at government as one entity,” he said. “The whole concept of secrecy in government applies to local, state and federal. Any adverse effects at the federal level will trickle down.”
