Budget Change Items
1. GENERAL OBLIGATION BONDING AUTHORITY
Governor: Provide general obligation bonding authority of $144,845,000 for the following purposes:
Agency Purpose Net Change
Administration Educational communication facilities $8,354,100 *
Agriculture, Trade
Consumer Protection Soil and water 3,575,000
Clean Water Fund Safe drinking water loan program 3,870,000
Educational Communications Board Educational communication facilities -8,354,100 *
Natural Resources Nonpoint source grants 14,400,000
Nonpoint source compliance 2,000,000
Transportation Rail acquisition 4,500,000
Harbor improvements 3,000,000
University of Wisconsin System Self-amortizing facilities 3,000,000
Veterans Affairs Self-amortizing mortgage loans 110,500,000
Total General Obligation Bonding $144,845,000
*This transfer of bonding authority would only occur if the Secretary of DOA determines that the FCC has approved proposed broadcast license transfers.
Update summary schedules relating to bonding and debt service that appear for informational purposes.
[Bill Section: 171]
2. REVENUE OBLIGATION AUTHORITY
Governor: Provide revenue obligation authority of $629,666,000 for the following purposes:
Agency Purpose Net Change
Commerce PECFA $450,000,000
Transportation Major highway projects 179,666,000 *
Total Revenue Obligations $629,666,000
*Does not include authority to cover financing costs associated with revenue obligation issues as under current law. The Building Commission would be authorized to issue transportation revenue obligations in an amount necessary to fund the financing costs associated with the obligations.
Update summary schedules relating to bonding and debt service that appear for informational purposes.
[Bill Section: 171]
BUDGET AND COMPENSATION RESERVES
1. REQUIRED GENERAL FUND STATUTORY BALANCE
Governor: Modify the requirement that the state maintain a statutory reserve equal to 1% of gross general fund appropriations plus compensation reserves in each fiscal year of a biennium to increase that percentage amount, beginning in 2000-01, as follows:
Fiscal Year Percent
2000-01 1.1%
2001-02 1.2
2002-03 1.4
2003-04 1.6
2004-05 1.8
2005-06 (and thereafter) 2.0
The Governor's budget provides, in the 1999-01 general fund condition statement, based on the recommended level of GPR appropriations plus compensation reserves, a statutory reserve of: (a) $105,538,300 for 1999-00 based on the current 1% reserve requirement; and (b) $121,472,000 for 2000-01 based on a proposed statutory reserve requirement of 1.1%. A 1% reserve requirement in 2000-01 would require a statutory reserve of $110,429,100.
[Bill Sections: 168 and 169]
2. COMPENSATION RESERVES
Governor: Provide, in the 1999-01 general fund condition statement, total compensation reserves of $ 98,327,700 in 1999-01 and $211,259,800 for the increased costs of state employe salaries and fringe benefits. Total compensation reserve amounts by fund source are shown in the table below.
Fund Source 1999-01 2000-01
General Purpose Revenue $44,100,000 $94,750,000
Federal Revenue 12,536,800 26,935,600
Program Revenue 33,814,900 72,652,300
Segregated Revenue 7,876,000 16,921,900
Total $98,327,700 $211,259,800
The administration has not provided details on the components included in these reserve amounts. However, typically included in compensation reserves are amounts to pay for: (a) the employer share of state employe health insurance premium increases in the next biennium; (b) the prior year's increase in the employer share of health insurance premium increases (because these were not included in agencies' adjusted base levels); (c) the costs of length of service payments for classified state employes; and (d) a reserve amount for the cost of pay plan and collective bargaining agreement pay increases in the next biennium which have yet to be determined. It is estimated that, after deducting amounts for potential costs increases other than across-the-board pay increases, there would be sufficient funds to provide a uniform across-the-board pay increase to all state employes of approximately 2% in 1999-00 and approximately 3% in 2000-01. However, actual employe pay plan and collective bargaining agreements for 1999-01 will not necessarily provide such uniform increases.
BUILDING COMMISSION
