Patrick Marley and Molly Beck

Milwaukee Journal Sentinel

MADISON - The U.S. Chamber of Commerce won't pour money into this year's state Supreme Court race, creating new challenges for conservative candidate Brian Hagedorn.

The national organization often funnels money to Wisconsin Manufacturers & Commerce to help conservatives in court races but won't do so this year, according to three sources familiar with the plans.

The move comes as other conservatives signal they're staying on the sidelines after reports about Hagedorn founding a school that can ban teachers and students in gay relationships and giving paid speeches to a legal organization that has argued in favor of anti-sodomy laws.

The Wisconsin Realtors Association last month withdrew its endorsement of Hagedorn and asked him to return an $18,000 donation. Soon afterward, longtime Republican consultants R.J. Johnson and Deb Jordahl — who have run past independent efforts to help conservatives running for the Supreme Court — wrote a column defending the Realtors' decision to stay out of the race.

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Hagedorn faces Lisa Neubauer in the April 2 election to replace retiring Justice Shirley Abrahamson. Hagedorn and Neubauer both sit on the District 2 Court of Appeals based in Waukesha.

Conservatives control the Supreme Court 4-3. A win by Neubauer would keep that majority in place, while a victory by Hagedorn would widen it to 5-2 in conservatives' favor.

The developments come as there are increasing signs Neubauer will benefit from spending by independent groups despite once saying she considered outside spending "toxic" and asked that they stay out of the race.

A group run by Eric Holder announced this week that it will be spending $350,000 to help Neubauer. Holder, who was President Barack Obama's first attorney general, will promote the group's plans at stops in Milwaukee and Madison next week. Neubauer is not participating in those stops.

The liberal Greater Wisconsin Committee last month began running digital ads criticizing Hagedorn and on Wednesday announced unveiled an ad for broadcast television.

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Hagedorn campaign adviser Stephan Thompson downplayed the significance of the spending plans by outside groups.

“The Hagedorn campaign is less concerned with Madison and Washington interests and more concerned with Wisconsin voters," Thompson said in a statement. "Clearly Eric Holder and liberal groups want to take over the court to accomplish their political agenda, but we’re confident voters prefer a justice who stands by the rule of law."

Nick Novak, a spokesman for Wisconsin Manufacturers & Commerce, declined to discuss the U.S. Chamber staying out of the race or say whether WMC would continue with an ad campaign using other sources of funding.

Contact Patrick Marley at patrick.marley@jrn.com. Follow him on Twitter at @patrickdmarley.