dale cattanach
State Auditor
__________________
State of Wisconsin
Claims Board
Madison
March 13, 1995
To the Honorable, the Assembly:
Enclosed is the report of the State Claims Board covering the claims heard on February 22, 1995.
The amounts recommended for payment under $5,000 on claims included in this report have, under the provisions of s.
16.007, Stats., been paid directly by the Board.
The Board is preparing the bill(s) on the recommended award(s) over $5,000, if any, and will submit such to the Joint Finance Committee for legislative introduction.
This report is for the information of the Legislature. The Board would appreciate your acceptance and spreading of it upon the Journal to inform the members of the Legislature.
Sincerely,
Edward D. Main
Secretary, Claims Board
__________________
State of Wisconsin
Department of Health and Social Services
Madison
March 13, 1996
To the Honorable, the Assembly:
1995 Wisconsin Act 27, Section
9126, (27g) requires the Department of Health and Social Services to submit a proposal to the Governor and the Legislature by April 1, 1996 to transfer the duty and authority to provide child welfare services in Milwaukee County from the county to the Department. The attached document summarizes the Department's proposal, as well as the implementation plan for a transfer of duty and authority for Milwaukee child welfare services to the Department no later than January 1, 1998.
This proposal is the result of collaborative efforts among the Department, the Milwaukee community, and the Milwaukee Child Welfare Project Steering Committee. The list of members of the Steering Committee, who advised the Department and guided the decision making process, is attached.
Sincerely,
Joe Leean
Secretary, DHSS
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
March 14, 1996
To the Honorable, the Legislature:
We have completed an audit of the State Fair Parks Board, to help meet our audit requirements under s.
13.94, Wis. Stats. The State Fair Park Board is responsible for operations of the Wisconsin State Fair and numerous other events held at the fairgrounds, as well as management of the 190 acres and 79 facilities that constitute the fairgrounds. In fiscal year (FY) 1994-95, State Fair Park's operating budget totaled $11.1 million in program revenues.
A1167
Although State Fair Park has been financially self-supporting since 1935, we found its financial condition is deteriorating. While revenues have exceeded operating expenditures in each of the past five years, expenditures have increased at a greater rate. In addition, the balance in the capital improvement fund is declining, and State Fair Park is limited in its ability to fund debt for the construction or major renovation of facilities.
State Fair Park's declining financial position has been caused by several factors, including a decline in attendance at the State Fair and a significant drop in automobile racing revenues. Although several options exist for the agency to enhance its revenues, it is difficult to determine which of these options will be most cost effective because State Fair Park lacks the detailed financial information necessary to make appropriate management decisions.
There is also uncertainty about State Fair Park's future relationship with the Pettit National Ice Center, located on the fairgrounds. The Pettit National Ice Center, Inc., a private, nonprofit corporation that leases the facility, was expected to provide full funding for the facility's operations as well as for debt service on state bonds that financed its construction. However, the corporation has struggled financially since the Pettit Center opened in December 1992. We estimate State Fair Park has paid $361,052 in support of the Pettit Center to date, but this amount would increase if the corporation were unable to uphold the terms of the lease or chose to exercise its option to not pay rent during the summer months.
In addition to questions about the Pettit Center, there are a number of unresolved concerns about buildings on the fairgrounds. While a 1993 study by the Department of Administration identified $29.2 million in remodeling, repair, and renovation needs, State Fair Park also has plans to construct a new youth dormitory at a total cost of $13.0 million and to renovate the existing coliseum at a total cost of $11.3 million. Given State Fair Park's current financial status, it is not certain how these projects will be funded.
We believe State Fair Park could take a number of steps to improve its operations. However, there are also several issues that require legislative consideration. In the short term, for example, the Legislature will need to decide whether to increase general purpose revenue-supported bonding in order to complete construction of the youth dormitory. Long-term considerations include how to finance the proposed coliseum renovation and whether general-purpose revenue will need to be provided in support of State Fair Park's operations.
We appreciate the courtesy and cooperation extended to us by the State Fair Park Board and its staff and by representatives of the Pettit National Ice Center, Inc. A response from State Fair Park Board's Executive Director is the appendix.
Sincerely,
Dale CAttanach
State Auditor