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
Budget Change Items
1. DEBT SERVICE REESTIMATE
GPR $26,111,400
Governor: Increase funding by $8,511,000 in 1999-00 and $17,600,400 in 2000-01 to reestimate debt service. Reestimates are associated with the following: (a) $9,728,900 in 1999-01 and $19,244,700 in 2000-01 for debt service on borrowing not initially allocated to specific programs; (b) -$1,176,800 in 1999-00 and -$1,603,200 in 2000-01 for debt service for capitol and executive residence projects; and (c) -$41,100 annually for debt service for the One West Wilson parking ramp project in Madison.
2. REVENUE OBLIGATIONS
Governor: Expand the definition of revenue obligations to include one or both of two types of obligations: (a) an enterprise obligation, which includes all revenue obligations types authorized under current law, but modifies certain provisions associated with these types of obligations; and (b) a special fund obligation, which would be created under the bill. Authorize the Building Commission to issue both types of revenue obligations. Under current law the Building Commission may issue revenue obligations to purchase, acquire, lease, construct, improve, operate or manage a revenue-producing enterprise. The obligations are payable solely from, and are secured solely by, the property or income from the revenue-producing enterprise.
Enterprise Obligations. Under the bill, enterprise obligations would be similar to current law revenue obligations, except that: (a) the requirement that the obligations be payable solely from, and are secured solely by, the property or income from the revenue producing enterprise would be eliminated; (b) a provision related to defeasance of the obligations could be included in a resolution authorizing enterprise obligations if the Commission deems that the provisions are needed to increase the marketability of the obligations or to protect the security interests of the holders of the obligations; (c) the income and property of the revenue-producing enterprise or program, rather than the enterprise itself, would be specified as subject to a lien until provision for payment in full has been made as provided in the authorizing resolution; and (d) acquisitions, expansions or improvements would be added to the list of purposes for which any reserved funds could be used in the event that no deficiency exists in the redemption fund.
Special Fund Obligations. Create a new type of revenue obligation called a "special fund obligation" which would be defined as every undertaking by the state to repay a certain amount of borrowed money that is both payable from a special fund consisting of fees, penalties or excise taxes and is not considered public debt. A special fund and special fund obligations would not require a revenue-generating enterprise. Special fund obligations could be used to fund special fund programs. A special fund program would be any state program or purpose, for which the Legislature has determined that special obligation financing is appropriate and serves a public purpose. The special fund would be a separate and distinct fund established in the state treasury or in an account maintained by a trustee. The state department or agency head would have authority to set the funding requirements for a special fund program, not to exceed the amount specified by the Legislature to be paid from special fund obligations.
Establish the following requirements related to special fund obligations.
a. A security interest for the benefit of the owners of the obligations, would be established in amounts that arise in the special fund related to the obligations, after the special fund program is created. Specify that amounts in the special fund would be accounted for on a first-in, first-out basis. Provide that no physical delivery, recordation or other action would be required to perfect the security interest. The special fund would remain subject to the security interest until provision for full payment of principal and interest of the obligation have been made as provided in the authorizing resolution. An owner of a special fund obligation could either at law, or in equity, protect or enforce the security interest and compel performance of all duties and requirements related to special fund obligations.
