On November 4, 1997, at 1830 central standard time, a Piper PA- 38, N2536N, operated by Wisconsin Aviation, collided with a runway light while maneuvering over on runway 18 (9,005' x 150') at the Dane Country Regional Airport, Madison, Wisconsin. The instructional flight was being conducted under 14 CFR Part 91. The certified flight instructor and student pilot were not injured. The airplane was substantially damaged. The flight was being operated in visual meteorological prevailed and no flight plan was filed. The flight originated at the Dane County Regional Airport at 1800 central standard time. The instructor reported that they were cleared to make a touch and go on runway 18. After touching down he instructed the student to climb to 50 feet and set up for another landing without flying around the traffic pattern. He reported he had the student fly the airplane down the runway in ground effect with full flaps. The instructor reported he then told the student he was going to raise the flaps to the first notch. He reported he may have been distracted and when his attention returned to the airplane it had drifted to the left side of the runway. The instructor reported they were flying too slow to fly out of ground effect so full power was applied at which time the right wing contacted a runway light. The instructor was able to get the airplane back over the runway where an uneventful landing was made. The student pilot reported that he and his instructor were practicing touch and go landings. The student reported that the instructor was flying the airplane down the runway in ground effect. The instructor then reduced the flaps at which time the airplane veered to the left. Power was added and the right wing contacted a runway light on the left side of the runway.