Assembly Chief Clerk
208 RJC
Dear Patrick:
Could you please add my name to the list of co-sponsors for Representative Gielow's Assembly Bill 280? Representative Gielow knows that I am making this request.
Sincerely,
Rob Kreibich
State Representative
93rd Assembly District
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May 11, 2005
Patrick Fuller, Assembly Chief Clerk
208 RJC
Hand Delivered
Dear Assembly Chief Clerk Fuller:
I co-sponsored Assembly Bill 63 and I regret that I had to miss the Assembly's floor session on Tuesday, May 3, 2005 due to my recent knee replacement surgery. I would like to go on the record that had I been able to be present I would have voted to override the Governor's veto of Assembly Bill 63.
Sincerely,
Suzanne Jeskewitz
State Representative
24th Assembly District
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Referral of Agency Reports
State of Wisconsin
Department of Administration
Madison
April 29, 2005
To the Honorable, the Legislature:
This report is transmitted as required by s.
20.002(11)(f), Wisconsin Statutes, (for distribution to the appropriate standing committees under s.
13.172(3), Wisconsin Statutes) 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 cash balances during the month of March 2005.
On March 1, 2005, the
Medical Assistance Trust Fund cash balance closed at its intramonth low of a negative $158.3 million. The fund's negative cash balance continued through March 31, 2005, when the fund's cash balance closed at a negative $149.8 million. The deficit is due to federal revenues falling short of estimates included in
2003 Wisconsin Act 33. This deficit will decline by $50.0 million in June when revenue is transferred from the general fund to the Medical Assistance Trust Fund as required by
2005 Wisconsin Act 2.
On March 1, 2005, the Wisconsin Health Education Loan Repayment Fund cash balance closed at a negative $1 thousand. This negative balance continued until March 9, 2005, when the fund cash balance closed at a positive $1 thousand. The negative balance was due to the difference in the timing of revenues and expenditures.
On March 31, 2005, the Lottery Fund cash balance closed at a negative $1.7 million. The negative balance was due to the difference in the timing of revenues and expenditures.
The Medical Assistance Trust Fund, Wisconsin Health Education Loan Repayment Fund, and the Lottery Fund shortfalls were not in excess of the statutory interfund borrowing limitations and did not exceed the balances of the funds available for interfund borrowing.
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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.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
May 11, 2005
To the Honorable, the Legislature:
As required by s.
13.94(1)(em), Wis. Stats., we have completed our annual financial audit and biennial program evaluation of the Wisconsin Lottery, which is administered by the Department of Revenue. We have issued an unqualified opinion on the Wisconsin Lottery's fiscal year (FY) 2002-03 and FY 2003-04 financial statements.
Total sales increased from $406.7 million in FY 1999-2000 to $482.9 million in FY 2003-04, or 18.7 percent. Both instant game and on-line ticket sales increased during this period. Approximately $2.2 billion in property tax relief has been provided through gaming-related proceeds since the Wisconsin Lottery's inception in 1988.
Because instant game ticket sales account for the majority of the Wisconsin Lottery's revenues, we reviewed the process used to develop instant games, including those affiliated with copyrighted or trademarked properties. We include a recommendation to formalize game development and management practices and analyses. We also found that a loss of approximately $212,000 was incurred in 2003 when participation in a Super Bowl prize drawing tied to the Powerball game was cancelled. We include a recommendation that the Wisconsin Lottery protect itself by ensuring that its contracts require a performance bond or similar guarantees.
We appreciate the courtesy and cooperation extended to us by Wisconsin Lottery staff in the Department of Revenue. The Department's response follows the appendices.
Respectfully submitted,
Janice Mueller
State Audit
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State of Wisconsin
Legislative Audit Bureau
Madison
May 12, 2005
To the Honorable, the Legislature:
In March 2005, we completed our fiscal year (FY) 2003-04 single audit of the State of Wisconsin and issued our report (report 05-5). During the course of our audit and subsequent follow-up, we identified $4.5 million available to the General Fund from other funds and accounts that the Legislature may wish to consider during the current biennial budget deliberations. In addition, we identified an error in the State Historical Society of Wisconsin's internal accounting records that understated the balance in its endowment fund by $1.1 million.
First, in FY 2003-04, the Department of Workforce Development (DWD) received $3.0 million in federal funds as reimbursement for costs incurred in prior years by local governments as well as expenditures charged to a prior-year general purpose revenue appropriation. However, rather than accounting for these funds as general purpose revenue of the General Fund, as required by statute, DWD deposited these funds in an unrelated federal appropriation. Alternatives include either lapsing these funds to the General Fund or allowing DWD to retain all or a portion of the funds but requiring the agency to seek legislative authority before expending them.
Second, we identified a bank account holding $906,000 related to Wisconsin Health Education Assistance Loan (WHEAL) revenue bonds. This bank account is no longer needed because the related revenue bonds have been fully repaid. If desired, the Legislature could direct the Higher Educational Aids Board, which administers the loan program, to close the account and transfer the balance, as well as any future student loan repayments, to the General Fund for general appropriation.
Third, the Department of Commerce administers the Wisconsin Development Fund, which was established to provide loans and grants for economic development. At the time a loan or grant is awarded, Commerce encumbers either general purpose revenues or program revenues. However, we identified several inactive loans and grants for which it had previously encumbered funds. If desired, the Legislature could direct the Department of Commerce to liquidate and lapse to the General Fund $337,000 in inactive encumbrances related to general purpose revenue appropriations. In addition, we have identified a total of $7.3 million in inactive encumbrances and additional balances related to a Department of Commerce program revenue appropriation for loans and grants.
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Fourth,
2001 Wisconsin Act 109 directed the Department of Administration (DOA) to offer for sale 21 aircraft and to deposit the sales proceeds, less any related liabilities, to the General Fund. As of March 31, 2005, DOA had sold 11 of those aircraft. However, it deposited all sales proceeds to one of its own program revenue appropriations. If the Legislature believes that DOA should instead have lapsed funds at the end of each fiscal year, it could direct DOA to immediately lapse net sales proceeds for FYs 2002-03 and 2003-04, which total to approximately $241,000, as general purpose revenue of the General Fund.
Finally, the State Historical Society of Wisconsin accounts for certain donations in the Historical Society Trust Fund, the Society's endowment fund. However, we found that the Society has not taken into consideration an additional $1.1 million that has been available in the Trust Fund since FY 1997-98. The majority of these funds are restricted for purposes specified by the donors, and the Society's current policy is to spend up to 5 percent of its balances each year. The Legislature may wish to direct that the Society's Board of Curators take into consideration the additional $1.1 million in trust fund balances when developing future expenditure plans.
A more detailed explanation of these available funds is attached. We hope that you find this information useful. If you have any questions or comments, please contact me.
Sincerely,
Janice Mueller
State Audit
