__________________
Referral of Agency Reports
State of Wisconsin
Department of Administration
Madison
June 29, 2005
To 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 2005.
On May 1, 2005, the
Medical Assistance Trust Fund cash balance closed at its intramonth low of a negative $146.6 million. The fund's negative cash balance continued through May 31, 2005, when the fund's cash balance closed at a negative $134.1 million. The deficit is due to federal revenues falling short of estimates included in Wisconsin Act 33. This deficit will decline by $125.0 million in June when revenue is transferred from the general fund to the Medical Assistance Trust Fund as required by
2005 Wisconsin Act 2 and
2005 Wisconsin Act 15.
The Medical Assistance Trust Fund was not in excess of the statutory interfund borrowing limitations 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, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.
Sincerely,
Marc J. Marotta
Secretary
Referred to committee on Ways and Means.
