Wednesday, July 3, 2002
Ninety-Fifth Regular Session
The Chief Clerk makes the following entries under the above date
__________________
The committee on Environmental Resources reports and recommends:
Lisle
, Thomas A.,
of De Pere, as a member of the Fox River Navigational System Authority, to serve for the term ending July 1, 2004.
Confirmation.
Ayes, 5 - Senators
Baumgart, Hansen, Wirch, Cowles and Schultz.
Noes, 0 - None.
Nelson
, Elwyn (Jack),
of Oshkosh, as a member of the Fox River Navigational System Authority, to serve for the term ending July 1, 2004.
Confirmation.
Ayes, 5 - Senators
Baumgart, Hansen, Wirch, Cowles and Schultz.
Noes, 0 - None.
Van De Hey, Ron,
of Kaukauna, as a member of the Fox River Navigational System Authority, to serve for the term ending July 1, 2004.
Confirmation.
Ayes, 5 - Senators
Baumgart, Hansen, Wirch, Cowles and Schultz.
Noes, 0 - None.
Willis
, Billy R.,
of Green Bay, as a member of the Fox River Navigational System Authority, to serve for the term ending July 1, 2005.
Confirmation.
Ayes, 5 - Senators
Baumgart, Hansen, Wirch, Cowles and Schultz.
Noes, 0 - None.
Jim Baumgart
Chairperson
__________________
State of Wisconsin
Department of Administration
June 19, 2002
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 May 2002.
On May 8, 2002 the General Fund balance was -$4.7 million. This shortfall continues until May 9, 2002 when the balance reached a positive $66.5 million. The shortfall was due to the timing of revenues and expenditures, in combination with the overall budget shortfall.
On May 23, 2002 the Wisconsin Health Education Loan Repayment Fund balance was -$1 thousand. This shortfall continued through May 31, 2002. The shortfall was due to the difference in the timing of revenues and expenditures.
The General Fund and the Wisconsin Health Education Loan Repayment Fund shortfalls were not in excess of the statutory interfund borrowing limitation 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,
George Lightbourn
Secretary
Referred to the joint committee on Finance.
State of Wisconsin
Office of the Governor
June 26, 2002
The Honorable, The Senate:
This is to inform you that I am withdrawing the nomination of Todd Kaufmann for appointment to the Fox River Navigational System Authority.
Thank you for your attention to this matter.
Sincerely,
Scott McCallum
Governor
State of Wisconsin
Legislative Audit Bureau
June 27, 2002
The Honorable, The Legislature:
S762
As required by s.
13.94(1)(dm), Wis. Stats., we have completed our first annual financial audit of the State Fair Park, which is administered by a 13-member board and is attached to the Department of Tourism for administrative purposes. We have issued an unqualified opinion on State Fair Park's fiscal year (FY) 2000-01 financial statements. We found that State Fair Park's total revenues increased 21.9 percent, from $13.1 million in FY 1995-96 to $15.9 million in FY 2000-01. However, total expenditures increased at a greater rate and exceeded revenues in three of the last six fiscal years. The Pettit National Ice Center's failure to make $371,785 in rent payments contributed to a FY 2000-01 deficit, but even if all rent payments had been made, the increase in State Fair Park's expenditures still would have outpaced the increase in its revenues.
Expenditures increased largely because construction of new facilities and improvements to existing facilities increased debt service costs. From FY 1995-96 through FY 2000-01, State Fair Park incurred $12.7 million in construction costs that will be repaid with program revenue, and its annual debt service costs increased 72.1 percent, from nearly $1.2 million to $2.0 million. State general purpose revenue (GPR) funded an additional $17.1 million in construction costs, and GPR debt service payments will be approximately $1.0 million annually through FY 2016-17. State Fair Park is assuming additional debt by undertaking an aggressive building program to renovate and replace other aging facilities. It will include a new exposition center, which is being built and will be managed by a not-for—profit corporation created by the State Fair Park Board; a renovated Milwaukee Mile grandstand; a new building known as the Wisconsin Heritage Hall, which will serve as a showcase for Wisconsin products; and the Agriculture Village, which will include new or remodeled livestock facilities.
Successful changes to fairgrounds operations and major facilities improvements may allow State Fair Park to become fore financially secure in the future. However, even though all of the new building projects except the Agriculture Village are expected to be self-supporting, debt associated with the building program may represent additional financial risk for both State Fair Park and the State. Efforts to privatize operations, such as the creation of the exposition center's not-for-profit corporation, are increasing State Fair Park's independence at the same time the State is assuming additional financial risk. Consequently, the Legislature may wish to ensure it retains adequate oversight of the State's investment in State Fair Park.
We appreciate the courtesy and cooperation extended to us by State Fair Park staff. A response from State Fair Park is Appendix 4.
Sincerely,
