Communications
State of Wisconsin
Revisor of Statutes Bureau
Madison
DATE: April 1, 1999
TO: Charles Sanders
Assembly Chief Clerk
Donald J. Schneider
Senate Chief Clerk
FROM: Gary L. Poulson
Deputy Revisor of Statutes
SUBJECT: Rules published in the March 31, 1999,
Wisconsin Administrative
Register, No. 519.
The following rules have been published:
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Referral of Agency Reports
State of Wisconsin
Department of Commerce
Madison
April 1, 1999
To the Honorable, the Legislature:
The department is submitting the 1998 Business Development Assistance Center Annual Report, as required under s.
560.42(5), Wisconsin Statutes.
The enclosed report provides data on the center's record of assisting persons and discussions with regulatory agencies. It includes information on the number of persons assisted; the kinds of assistance provided; and the center's major accomplishment and initiatives during 1998.
If you have any questions on any aspect of this report, please contact Hampton Rothwell, director of the Business Development Assistance Center, at email
hrothwell@commerce.state.wi.us or 608/267-0313.
Sincerely,
Brenda J. Blanchard
Secretary
Referred to committee on Small Business and Economic Development.
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State of Wisconsin
Technical College System Board
Madison
April 5, 1999
To the Honorable, the Assembly:
I am pleased to share with you the attached report in compliance with section
38.04(21) of the statutes. This provision requires the Wisconsin Technical College System (WTCS) Board to submit a report regarding high school pupils attending technical colleges. The report is to be submitted annually to the Legislature and to three state agencies (Departments of Administration, Public Instruction and Workforce Development).
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This is the second time that the WTCS Board has issued a report under this provision. The requirement was established in the 1997-99 state budget bill (
1997 Wisconsin Act 27). Although the statutory deadline for submitting the report is the third Monday in February, we were not able to obtain complete data from all 16 technical college districts until two weeks age. We apologize for the delay and will make every effort to comply with the deadline next year.
In summary, the report indicates that the number of high school pupils who attended technical college increased between 1996-97 and 1997-98. In particular, the following change in numbers occurred between the two years:
* The number of high school pupils who attended the WTCS under the 118.15 compulsory education option increased from 4,031 in 1996-97 to 4,375 in 1997-98.
* The number of high school pupils who attended the WTCS under the Postsecondary Enrollment Options (PSEO) program increased from 505 in 1996-97 to 624 in 1997-98. It should be noted that these figures do not reflect the recent changes made to this program. Beginning in 1998-99, the PSEO program was renamed the Youth Options Program and a number of changes related to WTCS attendance was enacted. The impact of these changes will be reflected in next year's report.
* The number of high school pupils who enrolled in WTCS postsecondary level courses through means other than 118.15 or PSEO increased from 6,047 in 1996-97 to 6,223 in 1997-98.
If you have any questions regarding this report, please contact Dan Clancy, Assistant State Director, at (608) 266-7983.
Sincerely,
Edward Chin
State Director
Referred to committee on Colleges and Universities.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
March 30, 1999
To the Honorable, the Assembly:
We have completed a financial audit of the Unemployment Reserve Fund for fiscal years 1997-98 and 1996-97. This audit was performed at the request of the Department of Workforce Development, which administers the Fund.
The Unemployment Reserve Fund's cash balance related to taxable employers increased $83 million during the past fiscal year, to over $1.6 billion as of June 30, 1998. This cash balance is used to determine the tax rate schedule to apply to taxable employers. Since the cash reserves exceed the amount that allows employers to be taxed under the lowest rate schedule, the Fund is able to charge employers the lowest authorized tax rates.
Copies of the report have been distributed to members of the Joint Legislative Audit Committee and those required by law to receive them. If you are interested in receiving a copy of this report, please contact our office and request report number 99-4.
Sincerely,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
March 31, 1999
To the Honorable, the Legislature:
We have completed an evaluation of the Department of Employment Relations' (DER'S) training programs for state employes, as requested by the Joint Legislative Audit Committee. These courses, which include statutorily required training for all new supervisors in the classified service, other training specific to state government, and general employe development training, represent 3 percent of all employe training expenditures reported though the State's accounting system from fiscal year (FY) 1993-94 through FY 1997-98. In FY 1997-98, expenditures for these courses totaled approximately $272,400 and enrollments totaled 1,943.
DER's training course expenditures are paid through its program revenue training appropriation, which is funded primarily by course fees. From FY 1993-94 through FY 1996-97, revenue from these fees declined steadily, primarily because of a 34.7 percent decline in enrollments that resulted from a large number of cancellations by DER, high course fees, and limited course applicability. DER made efforts to improve its training program in FY 1997-98, when both revenue and enrollments returned to levels comparable to FY 1993-94 levels.
The legislature can consider a number of options to address DER's role in providing training for state employes. These include maintaining DER's current role, directing DER to place more emphasis on coordinating state-sponsored training, or eliminating DER's training responsibilities and encouraging or mandating state agencies to play a larger role in providing training to their employes.
We appreciate the courtesy and cooperation DER extended to us. DER's response is the appendix.
Sincerely,
Janice Mueller
State Auditor
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State of Wisconsin
Investment Board
Madison
March 31, 1999
To the Honorable, the Legislature:
As provided under section
25.17(14m) of the Statutes, attached is the Investment Board's annual performance report to the Legislature. This report discusses our progress in meeting investment goals, the types of investments managed by the Board, our performance in 1998 and investments in Wisconsin.
Key points of note in this report:
* For the fourth consecutive year, the Fixed (balanced) Retirement Fund and Variable Retirement Fund both earned double digit returns. The performance of the US stock market was one of the most volatile on record and the disparity in returns from different sectors of the stock market was also among the largest ever. Market gains were driven by a handful of large company stocks, with only 15 companies accounting for half of the total return for the S&P 500.
* The Fixed (or balanced) Fund returned 14.6% in 1998. The Fixed Fund surpassed the 13.5% return for balanced mutual funds but fell short of the 15.3% median return for a peer group of public funds in 1998. Heavier exposure to small company stocks, and a large cash position in the non traditional portfolio, accounted for much of the difference in our performance relative to our peers.
* The Variable Fund returned 17.5% for the year matching the return for its benchmark. It trailed the 28.6% return for the S&P 500. The Variable Fund is primarily a stock fund but is diversified into a number of markets which are not represented in the S&P 500, including smaller company stocks, international stocks and emerging markets.
* We currently monitor the volatility of returns, interest rate sensitivity, foreign currency exposure, emerging market risk, liquidity and the use of derivatives. There has been no significant overall change in these risk elements for the fixed and Variable Funds since our last report to the Legislature in March 1998. They are considered prudent given our liability structure.
* SWIB completed a strategic plan that considered future financial needs of the WRS and investment strategies that are likely to add the greatest value:
1. The WRS actuary updated demographic and cash flow projections for the next 50 years. This study showed that the WRS is well positioned to meet its current and future obligations.
2. We worked with outside experts to confirm that a global and diversified investment strategy will earn the best return with the least risk over the long term. Within this strategy there will be a growing role for private market investments that offer greater returns but are more staff intensive to manage.
* The State Investment Fund (SIF) returned 5.3% for the year and outperformed its benchmark for the one- five- and ten-year periods. The SIF is the short-term cash management fund for local governments, state agencies and the Fixed and Variable Trust Funds. The SIF return ranked 8th out of 217 government funds in the IBC/Donoghue Government Index and 238th out of 897 money market funds in the IBC/Donoghue All Taxable Money Market Index.
* SWIB's investments in companies headquartered in Wisconsin totaled $2.4 billion as of June 30, 1998. An additional $5.6 billion was invested in companies not headquartered here but with 20 or more Wisconsin employes. Our investments in Wisconsin are made within the context of our fiduciary responsibility to the Retirement Funds. We are developing an initiative to invest up to $50 million in biotechnology companies - a plan that has the potential to earn attractive returns and spur development of a leading-edge industry in Wisconsin.
Several critical areas in our 1999-01 biennial budget will directly affect our performance. Assets under management have doubled in the last five years and increased by $10 billion in just the last 18 months. We are having increasing difficulty recruiting and retaining the experienced staff needed to manage portfolios that are among the largest in the world. Your support for budget measures to address this problem will be crucial.
Please contact me if you have any questions about this report or other matters.
Sincerely,
Patricia Lipton
Executive Director
