I am vetoing these sections because they undermine the property tax system while providing no tax relief. Except for agricultural property, real property is assessed at market value. Consequently, no property impacted by these sections would receive a property tax reduction. In addition, determining the classification of land based on the characteristics of adjacent land rather than the characteristics of the land itself weakens the uniformity of the property tax system.
State Treasurer
24. Changes in Statutory Appropriations
Sections 395 [as it relates to s. 20.585 (2) (tm)] and 920x
S362 These sections convert a continuing appropriation to an annual appropriation for College Savings Program administrative expenses. I object to this conversion because it is premature. The current appropriation structure was approved less than four months ago in 2001 Wisconsin Act 7. Also, this change may be programmatically unwise. The Legislature's first choice of a continuing appropriation type for these administrative expenses was sound and, until we have more experience with the program, I believe that a continuing appropriation is most suitable for these program expenses. For these reasons, I am partially vetoing these sections to restore this appropriation as a continuing appropriation.
TOBACCO SECURITIZATION PERMANENT ENDOWMENT FUND
25. Technical Veto to Remove Erroneous Cross-Reference
Section 940
This section creates the appropriation for the annual transfer from the permanent endowment fund to the general fund.
I am partially vetoing this section to remove a cross-reference to a section that does not exist. This correction conforms Senate Bill 55 to the intent of the Conference Committee.
TRIBAL GAMING ALLOCATIONS
26. Health and Family Services – Minority Health Program
Section 2848r
This section provides $250,000 in tribal gaming funding for a minority health program. Of this funding, $200,000 will be used for grants to improve minority health and $50,000 will be used for a public awareness campaign. I am vetoing the grant funding in fiscal year 2002-03 because I believe the ongoing funding commitment is excessive. As a result, I am requesting the Department of Administration secretary to place $200,000 in unallotted reserve in fiscal year 2002-03 in appropriation s. 20.435 (5) (kb) to lapse to the tribal gaming appropriation, s. 20.505 (8) (hm), at the end of that fiscal year.
27. Office of Justice Assistance – County-Tribal Law Enforcement Grants
Sections 395 [as it relates to s. 20.505 (6) (kr)], 859r, 859s, 890g, 890h, 9101 (21k) and 9401 (3k)
These provisions create a cooperative county-tribal law enforcement grant program funded with Indian gaming receipts and administered by the Office of Justice Assistance. The new program will provide Vilas County with $210,600 PR-S annually to support a law enforcement agreement with the Lac du Flambeau and provide Oneida County with $50,000 PR-S annually to support a law enforcement agreement with the Lac du Flambeau.
I am vetoing these provisions because both counties already participate in existing law enforcement grant programs. Vilas County receives funding for an agreement with the Lac du Flambeau under the cooperative county-tribal law enforcement grant program under s. 165.90 in the Department of Justice. Oneida County has received statutorily- established maximum award amounts through the Office of Justice Assistance's county law enforcement grant program under s. 16.964 (7). Furthermore, these earmarks would provide disparate treatment for these two counties compared to other recipients of Indian gaming receipts for tribal law enforcement efforts. By creating a fourth separate but related grant program for tribal law enforcement assistance using Indian gaming receipts, these provisions are unnecessary and duplicative.
28. Natural Resources – Trout Management
Section 395 [as it relates to s. 20.370 (1) (jk)]
This provision appropriates $20,000 in fiscal year 2001-02 and $150,000 in fiscal year 2002-03 for the study and reintroduction of the coaster brook trout.
By lining out the appropriation and writing in a smaller amount in fiscal year 2002-03, I am limiting the appropriation to $20,000 in each fiscal year. I am vetoing this provision because I am concerned about the depletion of tribal gaming revenue. Appropriations from tribal gaming revenue in fiscal year 2002-03 exceed the revenues taken in that year. Without restraint, there will be a mismatch between revenues and expenditures for the next fiscal year. Further, funding for introduction should await the findings of the study. If the findings are favorable, full reintroduction should also be supported by fish and wildlife revenues. In addition, I am requesting the Department of Administration secretary not to allot these funds.
29. Natural Resources – Wild Crane Study
Sections 395 [as it relates to s. 20.370 (1) (kk)] and 9137 (6f)
This provision appropriates $30,000 in each fiscal year for the study of crop damage by wild cranes.
By lining out the appropriation and writing in smaller amounts that delete $10,000 in fiscal year 2001-02 and $30,000 in fiscal year 2002-03, I am limiting the appropriation to $20,000 in fiscal year 2001-02 only. I am vetoing this provision because I object to the continuing nature of this study. Funds were appropriated for such a study in the last biennium as well. That study was to have been completed by July 1, 2001, and this should not become a continuing obligation. There should be adequate revenues remaining to complete the study and report the findings. In addition, I am requesting the Department of Administration secretary not to allot these funds.
30. Tourism – Kickapoo Valley Reserve, Law Enforcement Services
Section 395 [as it relates to s. 20.380 (2) (kc)]
This provision appropriates $31,300 in fiscal year 2001-02 and $41,800 in fiscal year 2002-03 to provide law enforcement services for the Kickapoo Valley Reserve.
S363 By lining out the appropriation and writing in a smaller amount in fiscal year 2002-03, I am limiting the appropriation to $31,000 in each fiscal year. I am vetoing this provision because I am concerned about the depletion of tribal gaming revenue. Appropriations from tribal gaming revenue in fiscal year 2002-03 exceed the revenues taken in that year. Without restraint, there will be a mismatch between revenues and expenditures for the next fiscal year. This veto limits the amount provided in fiscal year 2002-03 to the amount appropriated in fiscal year 2001-02. This should be sufficient to provide the necessary services. In addition, I am requesting the Department of Administration secretary not to allot these funds.
31. University of Wisconsin-Extension – Grazing Education Grants
Sections 395 [as it relates to s. 20.285 (1) (kj)], 580t, 890n and 1356g
These provisions create and fund a grazing education grant program of $100,000 annually. The program would provide grants for education and technical assistance on intensive grazing.
I am partially vetoing these sections because I am concerned about the depletion of tribal gaming revenue. Appropriations from tribal gaming revenue in fiscal year 2002-03 exceed the revenues taken in that year. Further, such technical assistance to agriculture has been a long-standing mission of the University of Wisconsin-Extension. This assistance should be provided from its base resources. A new program is not warranted.
32. Workforce Development – Trade Masters Pilot Program
Section 2560r
This provision creates the Trade Masters Pilot Program. It also provides that an evaluation be submitted to the Legislature by July 1, 2010.
I am partially vetoing this provision because I find the nine year deadline excessive. Instead, I am directing the Department of Workforce Development to explain how the funds were spent at the conclusion of the fiscal year. Moreover, an independent evaluation of the program can be done on a continuing basis as necessary by the Legislative Audit Bureau or the Performance Evaluation Office in the Department of Administration.
State of Wisconsin
Office of the Secretary of State
To the Honorable, the Senate:
Sincerely,
Douglas La follette
Secretary of State
The State of Wisconsin
office of the governor
executive order #22
Relating to a Special election for the Forty-second Assembly District
WHEREAS, the Honorable Joan Wade submitted her resignation as a State Representative for the Forty-second Assembly District, effective September 1, 2001;
NOW, THEREFORE, I SCOTT McCALLUM, Governor of the State of Wisconsin, pursuant to section 8.50(4) of the Wisconsin Statutes, order that a special election be held on November 6, 2001 to fill the vacancy in the Forty-second Assembly District. If a primary is necessary, it shall be held on October 9, 2001. Circulation of nomination papers for candidates may begin on September 4, 2001 and nomination papers may be filed no later than 5:00 P.M., September 11, 2001 in the office of the State Elections Board. The term will expire on the first Monday in January, 2003. A description of the boundaries of the Forty-second Assembly District as created in Prosser et al. v. Elections Board et al., 793 F. Supp. 859 (W.D. Wis. 1992) is set out in the 1999-00 Wisconsin Statutes following section 4.005. This election shall be held, conducted, canvassed and returned in accordance with law.
IN TESTIMONY WHERE OF, I have hereunto set my hand and caused the Great Seal of the State of Wisconsin to be affixed. Done at the Capitol in the city of Madison this fourth day of September in the year two thousand and one.
SCOTT McCALLUM
Governor
By the governor:
DOUGLAS LA FOLLETTE
Secretary of State
State of Wisconsin
September 5, 2001
The Honorable, The Senate:
I will be unable to attend the Joint Finance Committee meeting of September 5, 2001. Therefore I am submitting my resignation from the committee.
I will be available to resume my position immediately for the next committee meeting. If you have any questions, please do not hesitate to contact me.
Sincerely,
Kevin W. Shibilski
State Senator, District 24
State of Wisconsin
September 5, 2001
The Honorable, The Senate:
Pursuant to Senate Rule 20 (2)(a), I have appointed Senator Judy Robson to the Joint Committee on Finance.
Sincerely,
Chuck Chvala
Chair, Committee on Senate Organization
State of Wisconsin
Legislative Audit Bureau
August 29, 2001
The Honorable, The Senate:
The Audit Bureau is required by statute to contract for the performance of an actuarial audit of the Wisconsin Retirement System (WRS) at least once every five years. After a formal request-for-proposal process, the Audit Bureau awarded a contract to an actuarial firm, Milliman USA, to perform the most recent actuarial audit. The audit has been completed and the actuary's audit report, much of which is quite technical, and a response from the Department of Employee Trust Funds and its consulting actuary have been released.
In its report, Milliman USA concluded that the actuarial method used to determine WRS liabilities and funding requirements is reasonable and appropriate for the WRS. Further, Milliman USA concluded that the actuarial functions of the WRS are being adequately performed and that the WRS actuarial assumptions are reasonable.
S364 Milliman USA also offered observations on trends in contribution rates, noting that contribution rates in the protective categories have declined more steeply than in other employment categories. An effect of declines in contribution rates have been to provide reduced values for separation, death, and money purchase retirement benefits for participants. Suggested alternatives for addressing these trends would require legislative action.
Copies of the actuarial report have been distributed to members of the Joint Audit Committee, the Retirement Research Committee, the Department of Employee Trust Funds and its board, and to others required by law to receive copies. If you are interested in receiving a copy of the report, please contact our office and request a copy of the 2001 actuarial report of the Wisconsin Retirement System. The report is also available on line at www.legis.state.wi.us\lab\windex.htm.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Department of Administration
August 28, 2001
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 July 2001.
On July 23, 2001 the General Fund balance was -$148.6 million. This shortfall continued until July 31, 2001 when the balance reached a positive $3.4 million. During this period, the General Fund balance reached a low of -$162.1 million on July 25, 2001. This shortfall was due to the difference in the timing of revenues and expenditures that occurs each July, and the delay in issuing the 2001 Operating Note.
On July 6, 2001 the College Savings Program Trust Fund balance was -$2 thousand. This shortfall continued until July 31, 2001 when the balance reached a positive $48 thousand. The shortfall was due to the initial start-up of the fund and a delay in the transfer of revenues into the fund.
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
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