State Ex Rel. Thomson v. Giessel

53 N.W.2d 726, 262 Wis. 51, 1952 Wisc. LEXIS 324
CourtWisconsin Supreme Court
DecidedJune 3, 1952
StatusPublished
Cited by38 cases

This text of 53 N.W.2d 726 (State Ex Rel. Thomson v. Giessel) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Thomson v. Giessel, 53 N.W.2d 726, 262 Wis. 51, 1952 Wisc. LEXIS 324 (Wis. 1952).

Opinions

Brown, J.

Sec. 26, art. IV of the Wisconsin constitution states:

“Extra compensation; salary change. Section 26. The legislature shall never grant any extra compensation to any public officer, agent, servant, or contractor, after the services [55]*55shall have been rendered or the contract entered into; nor shall the compensation of any public officer be increased or diminished during his term of office.”

Sec. 42.535, Stats., provides that every qualified retired teacher “shall be paid an additional $1 per month for each year of teaching experience” and it designates such payments as an “additional benefit” and an “additional annuity.” The benefits and annuities to which these are additional are those provided by other sections of ch. 42, Stats. By sec. 42.42 every contract of employment as a teacher made after July 8, 1921, is subject to the provisions of the State Retirement Law (secs. 42.20 to 42.54), which confers specific benefits. Thereby such retirement benefits become part of the teaching contract and are consideration for the teachers’ services; that is, compensation for them. Hence, “additional benefits” and “additional annuities” at first glance appear quite plainly to be additional compensation. Just as clearly, additional compensation is extra compensation; — that is, compensation outside of that previously agreed upon. Sec. 42.535 grants such benefits to certain teachers who retired before June 30, 1951. The new section became effective July 19, 1951. It is apparent, therefore, that this extra compensation is not granted until after the teaching contracts had not only been entered into but the teachers’ services had been performed and the teacher had ceased to serve. If it be true, then, that the additional benefits and annuities form extra compensation, which was not granted until after the contracts were entered into or until the services had been rendered, the prohibition of sec. 26, art. IV, Const., renders the legislation void.

The petitioner submits, however, that this legislation is of a sort not forbidden by the constitution, for several reasons, which are not necessarily consistent with each other but any one of which will serve to sustain the legislation. First, he says, benefits provided by sec. 42.535, Stats., are [56]*56merely restoration or preservation of economic value of the compensation already granted, and he argues that the legislature by giving the retired teacher more dollars was, as nearly as possible, giving him only the equivalent of the fewer dollars which his contract promised: Hence there is no extra or additional compensation. Unfortunately for this contention, it has long been established that the compensation is governed by the contract’s terms. The purpose of sec. 26, art. IV, Const., said Chief Justice Ryan in Carpenter v. State (1876), 39 Wis. 271, 285, is to limit contractors with the state to the precise compensation fixed by their contracts. The teachers’ contracts for retirement benefits were contracts with the state and the compensation provided therein may not thereafter be increased by the legislature when the teaching is over. Their contract compensation was not expressed in purchasing power. Contracts can be so drawn and many of them are, whereby compensation is governed by a “cost of living” index or some other standard. The instant contracts, however, did not demand performance by the state in terms of goods, wares, or merchandise. Compensation was expressed in dollars, and additional dollars are extra compensation, which the constitution forbids the legislature to grant.

The petitioner then suggests that the additional benefits need not be regarded as compensation at all and are not payments made upon any contract, but on the contrary they are gratuities given former teachers by a sympathetic state, genuinely concerned over their economic plight, for the purpose of encouraging third persons to enter the profession and those now in it to stay in. A number of questions present themselves affecting this hypothesis. We find no declaration by the legislature that it had any such purpose in mind nor is there anything in the legislation to indicate that the economic plight of persons who are eligible for the benefits under the petitioner’s interpretation of eligibility differs from that of [57]*57other teachers who were not included. The legislation itself, by requiring the return of deposits already withdrawn plus $100 per person indicates, rather, a lack of concern for the most destitute, when it extends its benefits only to those with some resources of cash or credit. Then, too, a purpose to retain or attract those whom the legislature wishes to have as teachers can hardly be read into an act for whose benefits such desirable teachers are not and cannot become eligible, and which tenders its advantages only to sixteen hundred thirty-five retired teachers (petitioner’s estimate of the number who are both theoretically and practically eligible) whom it does not expect or wish to attract. This alleged purpose of the legislation is the more doubtful when if it existed, it could obviously be easily, effectively, and directly served by similar inducements made to the prospective, desirable, teachers themselves. In this connection petitioner relies on State ex rel. Dudgeon v. Levitan (1923), 181 Wis. 326, 193 N. W. 499, in which we sustained the constitutionality of the 1921 Teachers’ Retirement Law and held that in establishing a pension system the legislature might constitutionally give pension credits for former teaching service. There was no element in that case of granting benefits to anyone whose teaching service was over, nor from the language used by the court can we infer that .the court would have considered such a provision constitutional. The opinion repeatedly stresses the fact that the prior-service credits are allowed only to teachers then active with the purpose of inducing them, not others, to continue in service. The reward was held out to the very persons whom the legislature hoped to induce to perform future service, which is directly the opposite of the present fact situation. It may even be argued that the emphasis placed upon the current and future services to be expected from the beneficiaries makes the Dudgeon Case, supra, authority for the proposition that benefits for past service are unconstitutional when no current or future [58]*58services are to be rendered. We cannot treat the case as going that far because that question was not before the court, the legislature not having attempted to include as beneficiaries those whose services were finished, but at least State ex rel. Dudgeon v. Levitan, supra, is not authority for petitioner’s proposition that the effort to give gratuities or bonuses to ex-teachers is constitutional because, supposedly, it benefits the educational system.

The petitioner also relies on State ex rel. Atwood v. Johnson (1919), 170 Wis. 251, 176 N. W. 224, in which the constitutionality of the Soldiers’ Educational Bonus Law was upheld. Petitioner submits that benefits paid in gratitude for past services to the state are for a proper public purpose,— an encouragement to others to go and do likewise,- — and do not constitute extra compensation within the contemplation of sec. 26, art. IV, Const. He reinforces this argument by Brodhead v. Milwaukee (1865), 19 Wis. *624, in which expenditure of public funds as bounties to induce men to volunteer for military service was upheld. The benefits in the Brodhead Case, supra, as in the Dudgeon Case, supra,

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Bluebook (online)
53 N.W.2d 726, 262 Wis. 51, 1952 Wisc. LEXIS 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-thomson-v-giessel-wis-1952.