In 1982, Earl ran for governor when Lee S. Dreyfus unexpectedly declined to run for re-election, and soon the Wisconsin Democratic Party's hopes of reclaiming the governor's mansion became very real. As head of the state DNR, Earl was well-received as a staunch defender of the environment and a problem-solver. Earl used that reputation to defeat former Acting Governor Martin J. Schreiber in the Democratic primary for governor. Earl went on to defeat the Republican candidate, Terry Jodok Kohler, in a landslide victory. However, Earl's tenure as governor was a challenge from the start. By the time he took office, Wisconsin was marred by a budget deficit of nearly $1 billion and a 12% unemployment rate. Earl signed legislation making the 5% sales tax permanent and also added a 10% surtax on state income tax which was later reduced. Once the state was fiscally sound, Earl passed initiatives improving the environment, education, and equal opportunity. Earl appointed Doris Hanson, the State's first and only female to hold the office of secretary of the Department of Administration and Howard Fuller, the first African-American appointed to a cabinet position heading the Department of Employee Relations. Due to disagreements over healthcare reform, prison staffing, wage freezes and other matters, Earl's relations with state labor soured and made his tenure as governor all the more complicated. After restoring the state following one of the worst economic predicaments in state history, Governor Earl was ousted after one term. State Assembly Minority LeaderTommy Thompson, a Republican, staunchly opposed Earl's policies and was elected in 1986 to the first of four consecutive terms.
Post-gubernatorial career
Earl currently serves on the governing board of Common Cause in Wisconsin, a non-partisan, non-profit citizen's lobby affiliated with national Common Cause. In 1990, Earl was elected to the Common Cause National Governing Board. CC/WI promotes campaign finance reform, ethics and lobby reform, open meetings laws and other issues concerning the promotion and maintenance accountable government. Earl is also on the board of the Chicago-based Joyce Foundation. In July 2004, Earl was recognized at the 12th Annual Outreach Awards for his acknowledgment of the needs of the gay and lesbian community during his term in office; he received the organization's Political Courage Award. He served on the Board of Directors of the American Transmission Company which assumed ownership, operation, planning, maintenance and monitoring of all the electrical transmission assets formerly owned by a number of Wisconsin utility companies, cooperatives and municipal utilities. He was formerly a partner in one of the largest law firms in Wisconsin, Quarles and Brady. The Pestigo River State Forest in Marinette and Oconto counties has been renamed Governor Earl Peshtigo State Forest according to the Wisconsin Department of Natural Resources. September 25, 2019, as reported in the Appleton Post-Crescent on September 26, 2019.
