December 22, 1997
The Honorable, The Legislature:
As required by
1995 Wisconsin Act 5, we have completed an evaluation of state-funded loan guarantee programs administered by the Wisconsin Housing and Economic Development Authority (WHEDA). The programs, which guarantee commercial loans to eligible small businesses and farmers, are managed in the Wisconsin Development Reserve Fund. A 40 percent decrease in the Reserve Fund balance, from $21.1 million at the end of fiscal year 1991-92 to $12.9 million as of June 30, 1997, heightens the need for effective fiscal management of the Fund and guarantee programs. The Reserve Fund balance could decrease even more quickly if any one of several events occurs, including changes in the economy or default on a large guaranteed loan.
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In light of the decreasing balance, WHEDA has taken a number of steps to help improve the efficiency and reduce the costs of the guarantee programs. However, we identified several areas in which WHEDA needs to continue to improve its fiscal management of the Reserve Fund. For example, because it does not record or monitor actual time or costs spent on the guarantee programs, WHEDA is unable to adequately support the appropriateness and necessity of costs allocated to the Reserve Fund. In addition, staffing levels and expenses appear relatively high compared to those of commercial lenders and other state agencies. WHEDA also lacks adequate investment policies and strategies to guide investment decisions for the Reserve Fund.
In the future, additional state funds are likely to be required to maintain WHEDA's loan guarantee programs. However, whether to provide additional state funding in the future will depend on program need, demand, and results. WHEDA's loan guarantee programs for small businesses, which are the most costly to administer, are similar to those provided by the federal Small Business Administration. To help the Legislature assess the continued need for the small business loan guarantee programs, WHEDA needs to measure and report program results, such as the number of actual jobs created and retained.
We appreciate the courtesy and cooperation extended to us by WHEDA. A response from WHEDA is the appendix.
Sincerely,
Dale Cattanach
State Auditor
State of Wisconsin
Legislative Audit Bureau
December 30, 1997
The Honorable, The Legislature:
We have audited the financial statements of WHA Radio and Television, which are public telecommunications entities operated by the University of Wisconsin-Extension, for the period July 1, 1996 through June 30, 1997 and have issued our reports on these statements, dated December 9, 1997.
The audit was requested by the University of Wisconsin-Extension to fulfill audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities and certifications of these entities' non-federal revenue sources in determining future funding levels. The audit reports include no major findings, conclusions, or recommendations.
Copies of the audit 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 97-26 and 97-27.
Sincerely,
Dale Cattanach
State Auditor
State of Wisconsin
Legislative Audit Bureau
December 30, 1997
The Honorable, The Legislature:
We have audited the financial statements of ECB\ Radio and Television Networks, which are public telecommunications entities operated by the Wisconsin Educational Communications Board, for the period July 1, 1996 through June 30, 1997 and have issued our reports on these statements, dated December 5, 1997.
The audit was requested by the Educational Communications Board t fulfill audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities and certifications of these entities' non-federal revenue sources in determining future funding levels. The audit reports include no major findings, conclusions, or recommendations.
Copies of the audit 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 97-24 and 97-25.
Sincerely,
Dale Cattanach
State Auditor
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Relating to the design and construction of elevators and other mechanical lifting devices.
Submitted by Department of Commerce.
Report received from Agency, December 29, 1997.
Referred to committee on Economic Development, Housing and Government Operations, December 30, 1997.
Relating to erecting outdoor advertising signs where messages may be changed by electronic process.
Submitted by Department of Transportation.
Report received from Agency, December 23, 1997.
Referred to committee on Labor, Transportation and Financial Institutions, December 30, 1997.
Relating to the inmate complaint review system.
Submitted by Department of Corrections.
Report received from Agency, December 29, 1997.
Referred to committee on Health, Human Services, Aging, Corrections, Veterans and Military Affairs, December 30, 1997 .
Relating to allowing the operation of double bottoms and certain other vehicles on certain specified highways.
Submitted by Department of Transportation.
Report received from Agency, December 23, 1997.
Referred to committee on Labor, Transportation and Financial Institutions, December 30, 1997.
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The committee on Labor, Transportation and Financial Institutions reports and recommends:
Relating to the waiver of the motorcycle skills test and to required attendance of motorcycle rider courses and motorcycle instruction permit issuance.
No action taken.
Kimberly Plache
Chairperson
State of Wisconsin
Office of the Secretary of State
To the Honorable, the Senate:
Sincerely,
Douglas La follette
Secretary of State
for the Month of December 1997
A certificate of congratulations by Senator Schultz for Frank A. Anstett on the occasion of being recognized on 25 years of dedication to the citizens of Baraboo.
A certificate of congratulations by Senator Moen for Badger Challenge Program and Major General James Blaney on the occasion of his success in assisting Wisconsin's at-risk youth over the past 5 years.
A certificate of congratulations by Senator Moen for Badger Challenge Program and Lieutenant Peter J. Blum on the occasion of his success in assisting Wisconsin's at-risk youth over the past 5 years.
A certificate of congratulations by Senator Moen for Badger Challenge Program and Brigadier General Roger Greenwood on the occasion of his success in assisting Wisconsin's at-risk youth over the past 5 years.
A certificate of congratulations by Senator Moen for Badger Challenge Program and Colonel Andrew Schuster, and on the occasion of his success in assisting Wisconsin's at-risk youth over the past 5 years.
A certificate of congratulations by Senator Moen for Badger Challenge Program, all the Leaders, Instructors, Cadets, and Mentors on the occasion of their success in assisting Wisconsin's at-risk youth over the past 5 years.
A certificate of commendation by Senator Moore for Emerald City owners John Carr, Travis Belcher and Nick Anton on making the 1997 National Black Caucus of State Legislators Annual Meeting's "Main Event" which was held at Emerald City, for their extraordinary efforts in making the evening a tremendous success.
A certificate of commendation by Senator Moore for Mr. Erroll Davis for his extraordinary effort in support of the 1997 National Black Caucus of State Legislators Annual Meeting.
A certificate of commendation by Senator Huelsman for Justin Freiberg on the occasion of earning and attaining the rank of the Eagle Scout Award.
A certificate of congratulations by Senator Clausing for the Glenwood City High School Football Team and coach Phil Ottney on the occasion of winning the 1997 WIAA Division 5 State Championship.
A certificate of commendation by Senator Cowles for Norm Habeck on the occasion of his 46 year career with WTCH-AM/WOWM-FM radio in Shawano and being named 1997 Employee of the Year.
A certificate of commendation by Senator Wirch for Jacob Martin Hansen on the occasion of his years of dedication and achievement throughout his scouting career.
A certificate of commendation by Senator Moore for the Hyatt Regency Hotel, Kathy Kuhle and the entire staff on making the welcoming reception in the Lakeshore Ballroom for the 1997 National Black Caucus of State Legislators Annual Meeting a memorable event and throughout the Delegates stay where they received the highest of standards and excellent service.
A certificate of commendation by Senator Roessler for Tom Langenhorst on the occasion of his outstanding service to the WRA Lake-to-Lake Chapter.
A certificate of commendation by Senator Drzewiecki for Brett Mandli on the occasion of earning and attaining the rank of the Eagle Scout Award.
A certificate of commendation by Senator Drzewiecki for Craig Mandli on the occasion of earning and attaining the rank of the Eagle Scout Award.
A certificate of commendation by Senator Adelman for Norman F. McGarvie on the occasion of his retirement as the Assistant City Engineer for the City of Franklin after nearly 28 years of dedication to the City of Franklin.
A certificate of congratulations by Senator Clausing for the Menomonie High School Football Team and coach Joe LaBuda on the occasion of the 1997 WIAA Division 2 State Championship game.
A certificate of congratulations by Senator Jauch for Jerry and Mary Phillips proprietors of the Old Rittenhouse Inn on the occasion of the 20th Anniversary of the Wassail Dinners.
A certificate of commendation by Senator Wirch for Paul Raddatz on the occasion of his years of dedication to the Kenosha City Council.
A certificate of congratulations by Senator Decker for Sharon Ryan on the occasion of being nominated for the Presidential Award for Excellence in Science Teaching.
A certificate of congratulations by Senator Huelsman for Lynn Saxe, co-owner of the Saxe's Casual Fine Dining on the occasion of being chosen as the 1998 Outstanding Restaurateur of the Year by fellow members of the Wisconsin Restaurant Association's Milwaukee Chapter.
A certificate of congratulations by Senator Risser for Edward Schneider, Jr. on the occasion of his retirement after 37 years of commitment and dedication to the State of Wisconsin and as a member of the WILIS staff and wish him well on all his future endeavors.
A certificate of congratulations by Senator Schultz for George B. Smith on the occasion of his years of dedication to the Kiwanis Club of Richland Center.
A certificate of congratulations by Senator Rosenzweig for Conrad "Connie" Sobczak on the occasion of his retirement any his many years of dedication to the Family Health Care.
