Taxpayers at Risk

(Washington, D.C.) - As Microsoft Chairman Bill Gates wrapped up his testimony in the Microsoft antitrust case today, Citizens Against Government Waste (CAGW) once again called for the remaining states' attorneys general to reveal to taxpayers the cost of the trial.

"While nine states and the Department of Justice have agreed to settle this matter, nine other states and the District of Columbia continue to prolong the case at taxpayers' expense.  The attorneys general represent the people of the remaining states and should properly inform them of the costs involved in such long-term litigation.  Unfortunately, these states have been less than forthcoming in revealing such information," CAGW President Tom Schatz said. 

CAGW has repeatedly asked for information regarding the states' expenditures in the case by filing Freedom of Information Act requests with the attorneys general, most recently in January 2002.  The states have either denied the requests or provided incomplete responses.  California, which is leading the effort to prolong the litigation, has not revealed any of the current costs it is bearing in this case.

As a result of the lack of response from the states CAGW estimated the cost of the trial based on information collected from other leading litigation firms in Washington.  The analysis reveals that each day in court costs at least $30,000.  Once pretrial preparation, estimated at $250,000, is factored in the total cost by the end of this week will be $1 million.

"We have reached the $1 million mark in this trial and it is obvious that the final price tag will not be cheap.  The states have hired Brendan Sullivan as lead counsel, an outside trial lawyer whose firm, Williams & Connolly, has represented the likes of Oliver North and former President Bill Clinton," Schatz continued.  "In addition, Iowa Attorney General Tom Miller has already made several trips, at taxpayer expense, to D.C. to view the trial.  With many of these states already facing financial difficulties, this money and the attorneys' general time could be better spent on homeland security and other critical needs."

According to an analysis by the Evergreen Freedom Foundation, the nine states (excluding Washington, DC) are facing a combined budget shortfall of $20.6 billion.  Leading the way is California with $14.5 billion, followed by Minnesota with $2 billion, Florida with $1.4 billion, and Massachusetts with $1.35 billion.  Iowa is facing a $158 million deficit.  "These recalcitrant states are gambling with taxpayer dollars and simply cannot guarantee a victory if the draconian remedies they are seeking are not approved by Judge Colleen Kollar-Kotelly," Schatz also said.  "In fact, these remedies look like a competitor's dream, which is why they have instigated and lobbied for this litigation – to win in court what they cannot win in the marketplace."

"CAGW's one million members and supporters, along with all Americans, should be upset that their tax dollars are being risked on prolonged litigation that the majority of them do not even support.  A recent survey released by Americans for Technology Leadership found that 55 percent believe the proposed settlement by the federal government and nine states 'does about the right amount,' while 25 percent think that it 'goes to far,'" Schatz concluded.  "Clearly it is time for this costly litigation to end."

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.