Wednesday, September 25, 1996
The Chief Clerk makes the following entries under the above date.
__________________
State of Wisconsin
Department of Administration
September 10, 1996
The Honorable, The Legislature:
This report is transmitted as required by sec. 20.002(11)(f) of the Wisconsin Statutes, (for distribution to the appropriate standing committees under sec. 13.172(3) Stats.), and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative balances during the month of August, 1996.
On August 1, 1996 Wisconsin Health Education Loan Repayment Fund balance was - $29 thousand. This shortfall continued until August 2, 1996 when the balance reached $2 thousand. This shortfall was due to the timing of revenues.
On August 1, 1996, the Wisconsin Health Insurance Risk Sharing Fund balance was -$16 thousand. This shortfall grew to-$20 thousand on August 29 and continued through the end of the month. This shortfall was due to the timing of revenues.
The Wisconsin Health Education Loan Repayment Fund and Health Insurance Risk Sharing Fund shortfalls were not in excess of the $400 million ceiling and did not exceed the balances of the Funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority.
Sincerely,
James R. Klauser
Secretary
Referred to the joint committee on Finance.
State of Wisconsin
Investment Board
September 20, 1996
The Honorable, The Legislature:
Section
25.17(14r) of the Statutes, as created by
1995 Wisconsin Act 274, requires that the State of Wisconsin Investment Board (SWIB) submit a report to the Joint Committee on Audit, Joint Committee on Finance, and Chief Clerks of each House summarizing any change in the Board's investment policies, upon adoption of the change.
On September 12, 1996, the Board of Trustees approved a change to the investment guidelines for our domestic equities portfolios. The change is highlighted on the attached copy of the guidelines.
Our domestic equity investments are managed in three portfolios:
• The LARGE-CAP portfolio primarily invests in stocks with market capitalization of at least $5.0 billion. Up to 20% of the portfolio value may be invested in stocks with a market capitalization of between $1.0 and $5.0 billion.
• The MID-CAP portfolio primarily invests in stocks with market capitalization between $1.0 and $5.0 billion. Up to 50% of the value of the portfolio may be invested in stocks with market capitalization over $5.0 billion.
• The SMALL-CAP portfolio primarily invests in stocks with market capitalization of less than $1.0 billion. Up to 10% of the value of the portfolio may be invested in stocks with a market capitalization between $1.0 billion to $5.0 billion.
Guideline Change
The change in the guidelines delegates authority to the Chief Investment Officer (CIO) to approve variations from these market capitalization limits, up to a maximum of 5% of the asset value for each portfolio. For example, with the approval of the CIO, the portion of the LARGE-CAP portfolio invested in stock between $1.0 billion and $5.0 billion could be increased from the current 20% to up to 25% of the value of the portfolio.
The purpose of this change is to allow for some modest amount of additional flexibility in managing the portfolios. The flexibility is needed because our investment strategies periodically cross the capitalization limits for each portfolio. As the overall market moves up and down, the definition of "large" or "small" might be expected to move commensurately. Even in a stable market, individual stocks will move back and forth across the market cap limits.
With this guideline change the overall emphasis of each portfolio will be retained and the additional flexibility will be under the oversight of the CIO.
Please feel free to contact me if you have any questions about this item.
Sincerely,
Patricia Lipton
Executive Director
State of Wisconsin
Legislative Audit Bureau
September 19, 1996
The Honorable, The Legislature:
S891
We have completed a review of state agency efforts to provide prevention programs to children, youth, and families, as directed by the Joint Legislative Audit Committee. These programs have been developed to address a wide variety of problems, including adolescent pregnancy, child abuse and neglect, crime and juvenile delinquency, domestic abuse, alcohol and other drug abuse, poor academic performances and school dropouts, and health problems. In fiscal year (FY) 1994-95, 13 state agencies administered the 88 prevention programs we identified, and program costs totaled $181.8 million.
We found significant overlap in the services provided to prevent various types of problems and in the populations to which these services are directed. While federal regulations have in some instances created barriers to the consolidation of program funds, the State has also created specific requirements that act as barriers to program consolidation.
Some attempts have been made to evaluate the effectiveness of prevention programs. Specifically, within the past ten years, efforts were made to evaluate the effectiveness of 31, or 35.2 percent, of the programs. However, additional efforts are needed if the Legislature and the public are to be assured that funds are dedicated only to programs that are likely to be effective in accomplishing their objectives. In addition, additional efforts to coordinate prevention activities could allow services to be provided more efficiently and effectively at both the state and the local level.
Although most programs could be consolidated within a single agency, more feasible strategies are likely to include consolidating funding for state programs that provide similar services; enhancing local prevention efforts through funding strategies that encourage development of local prevention initiatives and provide more flexibility in the use of state funds; and providing more effective information and technical assistance services, such as identifying effective models that local agencies may use in establishing their own programs.
Appendices to the report include descriptions of each of the prevention programs administered by state agencies. We appreciate the courtesy and cooperation extended to us by the many state and local staff and representatives of community-based organizations who assisted us during the course of this evaluation. Responses from the Department of Health and Social Services and the Department of Public Instruction, the two agencies to whom we have directed recommendations, are Attachments VI and VII, respectively.
Sincerely,
Dale Cattanach
State Auditor
State of Wisconsin
Ethics Board
September 16, 1996
The Honorable, The Senate:
I am pleased to provide you with the accompanying report of the State of Wisconsin Ethics Board's activities for the year July 1995 through June 1996. This report provides information on the Board's operations and contains the texts of Wisconsin's Ethics Code and lobbying law. It also includes a description of complaints and investigations pursued by the Ethics Board, and summaries of advisory opinions issued by the Board during the year.
Sincerely,
r. roth judd
Executive Director
State of Wisconsin
Public Defender
