Sincerely,
Cloyd A. Porter
State Representative
66th Assembly District
State of Wisconsin
Legislative Audit Bureau
Madison
March 30, 1995
To the Honorable the Legislature:
We have completed an evaluation of the Wisconsin Waterways Commission, as requested by the Joint Legislative Audit Committee. The Commission provides funding for local government recreational boating projects on the Great Lakes and Wisconsin's inland waters.
Since fiscal year 1985-86, the Commission has provided $12.3 million in grants for inland lake projects and $12.9 million for Great Lakes projects, of which $7.6 million was for harbor projects in Racine, Kenosha, and Sheboygan. Questions have been raised about the Commission's role in the development of these project's including whether funds were spent on ineligible costs and whether the Commission's participation contributed to an oversupply of boat slips along the Lake Michigan shoreline and, by extension, increased property taxes in some communities.
Despite questions concerning the eligibility of these harbor projects, we found that all funds approved by the Commission for these projects were spent on eligible expenses. Although construction of berths, or marinas, is not an eligible cost, some believe that by funding even eligible expenses in these projects, such as breakwater construction the Commission encouraged marina development while there is an apparent interrelationship between Commission-supported activities and marina development, this interrelationship is contemplated in the statutes that specifically designate harbor and breakwater improvements, which are often a prelude to marina development, as eligible expenses.
Overall, we believe the Commission has reasonably interpreted the statutes in defining the scope of its project review. If the Legislature believes the Commission needs to take a more authoritative role in assessing the need for, and feasibility of, local projects, the Legislature could direct the Commission to: 1) require information in feasibility studies regarding local government liability and risk; 2) evaluate the quality of feasibility studies; 3) conduct its own independent feasibility studies. An expansion of the Commission's responsibilities would require additional staff resources. Further, because of the potential of increasing balances in the Commission's appropriation, the Legislature may also wish to review the Commission's funding level.
We appreciate the courtesy and cooperation extended to us by the commissioners, Department of Natural Resources staff, and local officials in Sheboygan, Racine and Kenosha. The Commission's response to the audit is Appendix IV.
Sincerely,
Dale Cattanach
State Auditor
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REFERENCE BUREAU CORRECTIONS
Assembly Substitute Amendment 1 to Assembly Bill 51
1. Page 2, line 10: substitute "board" for "baord".
Assembly Bill 130
1. Page 235, line 22: delete "938. 13" and substitute "938.13".
Assembly Bill 130
1. Page 400, line 22: after "9359" insert "of this act".
Assembly Amendment 1 to Assembly Substitute Amendment 1 to Assembly Bill 145
1. Page 2, line 1: substitute "section" for "sections".
Assembly Bill 176
1. Page 8, line 6: delete ", 773.03(50)" and substitute "and (49)".
Assembly Bill 203
1. Page 1, line 4: delete "(title)".
