Program Revenue
Department 1999-00 2000-01 Purpose
30. Wisconsin Housing and
Economic Development Auth. $2,500,000 $0 One-time funding to guarantee loans to small businesses located in, or adjacent to, counties with tribal casinos.
31. Workforce Development 350,000 350,000 Vocational rehabilitation services for Native American individuals and tribes or bands.
Total $20,605,700 $22,134,400
1 Would eliminate GPR funding and provide an identical amount of gaming revenue for the same purpose.
2 Would eliminate PR lottery and racing revenue funding and provide tribal gaming revenue in a greater amount for the same purpose.
3 Would eliminate GPR and PR penalty assessment funding and provide gaming revenue in a greater amount for the same purpose.
4 Would increase revenue for fish and wildlife account, possibly holding down fee increases or preventing certain program reductions.
5 Would eliminate GPR and SEG funding and provide an identical amount of gaming revenue for the same purpose.
6 Would supplant SEG funding (fish and wildlife account) currently used for this purpose.
7 Would eliminate GPR funding and provide gaming revenue in a greater amount for the same purpose.
[Bill Sections: 546, 547, 3026 and 3027]
2. INDIAN GAMING COMPUTER SYSTEM
PR $1,030,700
Governor: Provide $879,800 in 1999-00 and $150,900 in 2000-01 for a computer system to process gaming data provided to the state by tribal casino operations. Under the recently completed state-tribal gaming compact amendments, the tribes agree, with some variations, to provide the state with electronic access to certain slot machine accounting data (as an alternative to on-site physical access allowed under the original compacts). The proposed new computer system would be designed for processing this data. The funding would be placed in unallotted reserve, to be released by DOA, pending a final determination of cost.
3. TRIBAL GAMING REGULATORY POSITIONS
Funding Positions
PR $468,400 5.00
Governor: Provide $242,800 and 5.0 positions in 1999-00 and $225,600 in 2000-01 for the Office of Indian Gaming. The Office of Indian Gaming is responsible for state regulatory activities under the state-tribal gaming compacts. The positions provided would include 1.0 financial supervisor position, 2.0 auditor positions, 1.0 regulation compliance investigator position and 1.0 program assistant position. The funding would also provide $30,000 in one-time funding in 1999-00 to contract with a private investigator to assist with a backlog of vendor background investigations. Base funding for DOA’s Indian gaming appropriation is $913,100 with 10.0 positions authorized.
4. COMPULSIVE GAMBLING AWARENESS CAMPAIGNS
PR $372,000
Governor: Provide $186,000 annually for compulsive gambling awareness campaigns, as follows: (a) provide $200,000 annually from tribal gaming revenue; and (b) delete $14,000 annually currently provided from pari-mutuel racing revenue. Under current law, the Department of Health and Family Services (DHFS) is provided $100,000 annually ($50,000 from tribal gaming, $14,000 from pari-mutuel racing and $36,000 from the state lottery) for grants to one or more individuals or organizations in the private sector to conduct compulsive gambling awareness campaigns. Under the bill, payments from pari-mutuel racing and the state lottery for this purpose would be eliminated and DHFS would receive a total $250,000 annually from tribal gaming revenue for compulsive gambling awareness campaign grants.
[Bill Sections: 455, 545 and 546 thru 548]
5. PARI-MUTUEL RACING POSITIONS
Funding Positions
PR - $258,800 - 3.00
Governor: Delete $129,400 and 3.0 positions annually from the general program operations for pari-mutuel racing regulation. The positions include a program assistant, a senior accountant and a regulation compliance investigator. The program assistant and accountant positions are currently vacant. The incumbent investigator would be transferred to the general program operations appropriation for Indian gaming as one of the new positions proposed for tribal gaming regulation.
6. POSITION ALLOCATIONS
Governor: Delete $150,500 PR and 2.75 PR positions annually from the general program operations for pari-mutuel racing and provide $87,900 PR and 1.75 PR positions annually for charitable gaming regulation and $62,600 PR and 1.0 PR position annually for Indian gaming regulation. The transfer of funding for the positions is in response to an audit recommendation by the Legislative Audit Bureau that DOA develop an equitable process for allocating administrative costs among all Division of Gaming programs and to seek expenditure authority from the Legislature to pay these allocated costs from the program operations funding for racing, charitable gaming and Indian gaming.
General Statutory Provisions
1. AUTHORITY TO TRANSFER POSITIONS WITHIN DOA WITHOUT LEGISLATIVE APPROVAL
Governor: Authorize DOA to change, without seeking legislative approval, the funding source for any positions funded in whole or in part from program revenue, within any of DOA's program revenue appropriations except for those listed under "Committees and Interstate Bodies," "Attached Divisions, Boards, Councils and Commissions," "Office of Justice Assistance" and "College Tuition Prepayment Program," which are all entities attached to DOA for administrative purposes except for the College Tuition Prepayment Program. Affected positions would include classified as well as unclassified positions and full or part-time positions. This authority would be available during the period from the effective date of the budget to June 30, 2001, or on the date of publication of the 2001-03 budget, whichever is later. During this period, DOA would be required only to report quarterly to the Co-chairs of the Joint Committee on Finance concerning any position changes made during the previous quarter under this authority. The reports would be required to include, for each position, the position type, and the appropriations between what each position was shifted. Although the authority to shift positions in this manner without legislative approval would expire upon enactment of the next biennial budget, all position changes made during the period would remain in effect after the period of authorization expires.
In general, under current law, program revenue positions may only be created, abolished, or transferred to another funding source if authorized by: (a) the Legislature by law or in the budget; (b) the Joint Committee on Finance under ss. 13.10 or 16.515; or (c) for positions funded from federal funds the Governor may act without approval of the Legislature.
There are, in addition, two other special exceptions provided. One exception allows the UW Board of Regents to unilaterally change the number of positions authorized for the UW System--but only for positions funded from certain program revenue or federal revenue accounts. A second exception allows the UW Hospital and Clinics Board to unilaterally change the number of positions authorized for the Board funded from program revenues. The UW Board of Regents and the UW Hospitals and Clinics Board are required to report quarterly to the Department of Administration and Joint Committee on Finance on position changes made under these provisions.
[Bill Sections: 72 thru 75]
2. EXPANSION OF MASTER LEASE PROGRAM
Governor: Amend current law regarding the state master lease program as follows:
Expand basic authority regulating the use of master leases. Modify current law to allow DOA to enter into a master lease to obtain property or services, rather than for the lease of goods or the provision of services. Specify that a master lease may not be used to obtain a facility for use or occupancy by the state, a state agency, or any other instrument of the state or to obtain an internal improvement. Broaden the authority of DOA to enter varied financing agreements, which the Department determines are necessary to facilitate the use of a master lease, and repeal the seven specific financing tools currently identified in the statute (liquidity facilities, re-marketing or dealer agreements, letters of credit, insurance policies, interest rate guarantees, reimbursements and indexing agreements). Exempt master leases from the statutory requirements governing contractual services and lowest responsible bidder requirements. Lastly, clarify the uniform commercial code exemption for master leases from the requirement to file a perfect security interest with Department of Financial Institutions (DFI). DOA is directed to record and preserve the record of perfect interest throughout the master lease and language is included that clarifies that master leases have priority of interest over conflicting interest of an encumbrancer or owner of the real estate.
Under current law, the master lease program may be used for the lease of goods or the provision of services on behalf of one or more state agencies. The types of financing are enumerated in the statutes. Under current law the fiscal agent services are exempt from the requirements governing contractual services and lowest responsible bidder requirements; but the master lease contracts are not. The current process of perfecting security interest is necessary to determine the order of ownership of a property dispute. This is normally done by filing a notice of security interest with DFI. Master leases are currently exempt form the uniform commercial code and DOA may grant a security interest rather than DFI.
Municipalities. Authorize the use of state master leases for municipalities and create an appropriation to expend monies received from municipalities to make state master lease payments. Provide that use of a master lease by a municipality would be restricted to obtaining property or services related to public safety functions of the municipality. Require that when DOA uses a master lease on behalf of a municipality, the Department is required to enter into an installment sales contract with the municipality to obtain any property or service. Specify that the municipality shall issue a general obligation promissory note to DOA as security for the property or services obtained under the master lease. In addition, stipulate that a state agency's ability to use a master lease may not be dependent upon payment by a municipality unless the obligation of the municipality constitutes a general obligation.
The master lease program cannot currently be used to finance municipal purchases.
[Bill Sections: 93 thru 101, 515 and 2819 thru 2822]
3. FINANCING OF ENERGY CONSERVATION CONSTRUCTION PROJECTS
Governor: Modify current law regarding DOA's energy conservation audits and construction projects program to newly allow construction work under this program to be initially financed by the state.
Under current law, DOA may contract with a qualified contractor for the conduct of an energy conservation audit to be performed at any state-owned building, structure or facility. After the audit, if DOA believes that projected potential savings from any proposed energy conservation construction project would be sufficient to enable recovery of the costs of the construction within a reasonable period of time, DOA may contract with the audit contractor to undertake the proposed construction work. The contract must require that the contractor undertake the construction work at its own expense. DOA may then make payments to the contractor for the construction work from the fuel and utility costs appropriation in the respective agency as the projected energy savings are realized.
Under the Governor's proposal, the state would be able to directly finance the initial construction work. If the state chooses to do so, the state would also be newly authorized to finance any portion of the construction work using master lease financing. Further, for any project for which the state provides initial financing, DOA would be required to recover from the contractor any amount paid by the state to the contractor that is greater than the amount of savings realized by the state from the project within the reasonable period of time identified in the contract. The proposed language would also require that DOA, in its required annual report on construction projects contracted for under this program, include information on amounts of money due from contractors under this proposed change in how energy savings realized would be used. Finally, the bill would provide that if master lease financing is used to pay for any energy conservation construction projects, payments under the master lease could not be conditioned upon contractors making the above required payments to the state.
[Bill Sections: 102, 106 and 107]
4. MODIFICATIONS TO DOA REVIEW OF ANNEXATIONS IN POPULOUS COUNTIES
Governor: Extend from the current 20 days to 60 days the period of time during which DOA may review a proposed annexation of town territory that is contiguous to a city or village in a county with a population of at least 50,000 and have the opportunity to state that in DOA's opinion, the annexation is against the public interest.
Under current law, within five days of the publication of notice of intent to circulate an annexation petition to be filed with a city or village clerk in such a county, a legal description and a scale map of the proposed annexation must be sent to DOA. Within 20 days of receipt of these materials, DOA may mail to the clerks of the municipalities affected by the proposed annexation a notice that in its opinion the annexation is against the public interest. Within 10 days of mailing this notice, DOA must provide the reasons for its determination. This determination may be based on considerations of: (a) whether governmental services, including zoning, may clearly be better supplied by an adjacent municipality that has filed with the county circuit court a copy of a resolution adopted by a two-thirds vote of the municipality's governing body indicating a willingness to annex the area upon the filing of a valid annexation petition; or (b) the shape of the proposed annexation and the homogeneity of the territory with the annexing municipality and any other contiguous municipality.
Newly authorize DOA to refuse to accept the documents filed with it, if within five days of their receipt, the legal description or scale map is illegible, contains errors that prevent DOA from ascertaining the territory to be annexed or does not conform to generally accepted standards for the preparation of legal descriptions and scale maps. Provide that if the documents are refused by DOA, the annexation process may not continue. Stipulate that if the documents are resubmitted no later that 10 days after they were initially returned by DOA and the agency determines that they are legible, accurate and conform to generally accepted standards for legal descriptions and scale maps, the annexation process may proceed.
Specify that an annexation ordinance would become effective when it is recorded with the county register of deeds, rather than upon enactment, as currently provided. In conjunction with this change, delete a provision stating that a clerk's failure to file or record the necessary final documents relating to the annexation does not invalidate the annexation and that the clerk has a continuing duty to make such filings. There continues to be an on-going statutory obligation for the city or village clerk to record the ordinance with the county register of deeds. Clarify that one copy of all relevant annexation ordinances, certificates and plats must be filed with affected utility companies serving the annexed area. Currently, the documents that must be provided to the affected utilities are not explicitly referenced.
Specify that these modifications would first apply to annexation proceedings that commence with the filing of annexation petitions with a city or village clerk on and after the general effective date of the biennial budget act.
[Bill Sections: 1597 thru 1599 and 9358(1)]
5. PROCUREMENT -- EXEMPTION FROM BUYING FROM WORK CENTERS FOR THE SEVERELY HANDICAPPED
Governor: Authorize the Secretary of DOA to waive, at the request of an agency, the procurement requirements that provide preference to work centers for the employment of severely handicapped individuals if such a preference contravenes competitive requirements under federal law or regulations.
Under current law, procurement regulations governing agency purchases, or purchases made for an agency, require that preference be given to work centers for severely handicapped individuals. The State Use Board maintains a list of approved work centers and state agencies are directed to purchase goods produced from these work centers. The requirement does not apply to: (a) printing and stationary purchases; (b) goods produced by another state institution; (c) goods produced by prison industries; and (d) major procurements. Agencies may also obtain written certificates of exception from the State Use Board if all of the following conditions are met: (a) the work center cannot furnish the material, supply, equipment, or service in the time period specified in the order; and (b) the material, supply, equipment, or service is available from commercial sources in quantities and at an earlier time.
[Bill Sections: 90 and 91]
6. CREATION OF DUTIES DUE TO ELIMINATION OF EDUCATIONAL COMMUNICATIONS BOARD
Governor: Provide that if the Secretary of DOA would determine that the Federal Communications Commission (FCC) has approved the transfer of all broadcasting licenses held by the Educational Communications Board (ECB) and the University of Wisconsin Board of Regents to the proposed nonstock Educational Broadcasting Corporation, on and after the effective date of the last license transferred, the following would occur:
Emergency Weather Warning System Operation
1. DOA would be required to operate an emergency weather warning system which, under current law, is operated by the ECB;
2. An annual, program revenue appropriation would be created under DOA for the operation of the emergency weather warning system. The amounts in the schedule would be provided from funds received for the provision of state telecommunications and data processing services and sale of telecommunications and data processing inventory items primarily to state agencies. A technical correction would be necessary to achieve the intent of the bill. No funding would be provided in 1999-01; and
