[Bill Sections: 940, 941, 9315(1)&(2) and 9415(1)]
13. INSTALLMENT PURCHASES OF FORFEITED WRS SERVICE
Governor: Modify current law to allow a WRS participating employe to submit one or more applications for the purchase and reestablishment of previously forfeited creditable service. Specify that a participating employe could apply for all or part of the previously forfeited creditable service, subject to rules promulgated by ETF, but could not submit more than two applications in each calendar year. Stipulate that ETF would have to receive any application and the required payment no later than the date the participating employe terminated employment with the participating employer.
Under current law, a WRS participant who leaves covered service prior to attaining the statutory minimum retirement age may request and receive a separation benefit, in which case all prior WRS creditable service is forfeited and the individual no longer has any claim to a WRS retirement benefit. Currently, if an individual returns to WRS covered service for at least three years, the participant may purchase previously forfeited service. The amount of forfeited service purchased may not exceed the smaller of either the number of years of new creditable service earned as of the date of application, or 10 years. The participant submitting the application must make a lump sum payment equal to the employe's statutory WRS contribution rate applied to the average of the three highest years of earnings.
[Bill Sections: 943 and 944]
14. MODIFIED DEATH BENEFIT UNDER TEMPORARY SOCIAL SECURITY INTEGRATED ANNUITY OPTION
Governor: Modify current law to provide that if a WRS annuitant who is receiving a temporary Social Security integrated annuity dies before attaining the age of 62, a death benefit payable to the decedent's beneficiary would continue to include the temporary Social Security integrated annuity payment until the month in which the decedent would have attained the age of 62. Stipulate that this provision would first apply to the calculation of death benefits for a beneficiary of an annuitant who dies after the general effective date of the biennial budget bill.
Under current law, if a WRS participant at retirement has not attained age 62 and, therefore, is not yet eligible for Social Security benefits, the participant may elect to receive a temporary Social Security integrated annuity. A temporary Social Security integrated annuity allows the annuitant to receive an accelerated WRS annuity in the form of higher payments before age 62 than the individual would ordinarily have received. The temporary annuity ends at age 62, when the participant begins receiving Social Security benefits. Under this arrangement, the amount of the temporary Social Security integrated benefit that a participant receives before age 62 is calculated to be equivalent to the sum of the annuitant's Social Security benefits payable at age 62 plus an on-going, reduced WRS monthly annuity that is less than the participant would ordinarily have received.
Also, under current law, if a participant with a temporary Social Security integrated annuity dies before age 62 and has a beneficiary, the temporary annuity ends upon the date of the annuitant's death and the death benefit automatically drops to the level of the reduced WRS annuity that would have been payable had the decedent attained age 62.
As the proposal is drafted, it would apply to any current annuitant receiving the temporary Social Security annuity option who dies after the effective date of the budget and also leaves a beneficiary. Under Article IV, Section 26 of the Wisconsin Constitution, additional benefits may not be paid to a former public employe after the service has been rendered unless the Legislature provides GPR funding for the increase and authorizes the change upon a three-fourths vote of all members. Whether this Constitutional limitation would apply in this case is uncertain; however, any ambiguity could be resolved by making a technical modification to make the change first applicable to those annuities commencing after the general effective date of the biennial budget act.
[Bill Sections: 942 and 9315(3)]
EMPLOYMENT RELATIONS
Budget Change Items
1. STANDARD BUDGET ADJUSTMENTS
GPR - $364,800
PR 3,400
Total - $361,400
Governor: Provide -$169,600 GPR and $1,700 PR in 1999-00 and -$195,200 GPR and $1,700 PR in 2000-01 for standard budget adjustments for: (a) turnover reduction (-$101,700 GPR annually); (b) removal of noncontinuing elements from the base (-$69,500 GPR in 1999-00 and -$96,500 GPR in 2000-01); (c) full funding of continuing salaries and fringe benefits costs (-$12,200 GPR and -$3,200 PR annually); (d) full funding of financial service charges ($2,100 GPR and $700 PR annually); (e) reclassifications ($4,200 PR annually); (f) fifth week of vacation as cash ($7,900 GPR in 1999-00 and $9,300 GPR in 2000-01); (g) full funding of lease costs and directed moves ($3,800 GPR annually); and (h) minor off-setting transfers within the same appropriation.
2. RESTORATION OF COLLECTIVE BARGAINING POSITION
Funding Positions
GPR $35,800 1.00
Governor: Provide $35,800 in 2000-01 and 1.0 labor relations specialist position in the Division of Compensation and Labor Relations. This new position would restore funding and position authority for a vacant labor relations specialist position that the agency chose to reallocate during the 1998-99 fiscal year to provide a database administrator position to oversee the implementation of the agency's Shared Human Resource System (an integrated personnel management database). Prior to this position reallocation, the agency had 9.0 FTE labor relations specialists who were involved in biennial negotiations with 19 separate bargaining units.
3. INFORMATION TECHNOLOGY FUNDING
GPR $139,000
Governor: Provide $69,500 annually for agency information technology costs. The funding would be used during 1999-00 to complete the master lease payments on the agency's local area network and to make other unspecified system upgrades. Thereafter, the agency indicates that the funds would be used for unspecified IT maintenance and upgrade projects. During the 1997-99 biennium, $69,500 was reallocated to provide one-time financing for the agency's IT master lease payments and other IT expenses. These funds were not provided on an on-going basis since the agency's master lease was expected to be retired in 1999. The Governor's recommendation would add $69,500 annually of on-going IT funding to the agency's base.
4. STATE EMPLOYE RECRUITMENT POSITION FUNDING CONVERSION
Funding Positions
GPR - $104,000 -1.00
PR 104,000 1.00
Total $0 0.00
Governor: Shift $52,000 annually and 1.0 state employe recruiter position from GPR to PR funding to reflect the conversion of this existing position to funding provided through the Temporary Assistance to Needy Families (TANF) block grant administered by DWD. This position (an executive human resources specialist) is currently assigned to the Division of Merit Recruitment and Selection and functions as an affirmative action recruiter in the Milwaukee area. Establish a new PR annual appropriation under DER to which would be credited funds received from other agencies to undertake interagency projects. Modify an existing TANF block grant administration and operations appropriation under DWD to authorize the transfer of TANF funds to the new DER interagency projects appropriation account.
[Bill Sections: 474 and 591]
5. INCREASED TRAINING PROGRAM COSTS
PR $125,900
Governor: Provide increased expenditure authority of $57,000 in 1999-00 and $68,900 in 2000-01 in the agency's employment development and training services appropriation: (a) $50,400 in 1999-00 and $62,300 in 2000-01 for increased costs of in-house and contractor-provided training courses; (b) $4,100 annually for LTE clerical support; and (c) $2,500 annually for permanent property purchases. All of these additional funds would be placed in unallotted reserve. The Executive Budget Book indicates that the release of the funds from unallotted reserve would be contingent upon DER demonstrating to DOA that the demand for training courses and the associated revenues raised would be sufficient to support the higher expenditure authority provided. The revenues to support these increased expenditures would come from fees collected for contractor-provided employe training courses and for a variety of employe recruitment, compensation and management training sessions offered by in-house staff.
6. ACCOUNTING OF MISCELLANEOUS REVENUES FROM OTHER AGENCIES
PR $32,000
Governor: Create a new PR continuing appropriation account to which would be credited all monies received by DER for its providing of employment services and materials to other state agencies. Provide expenditure authority of $16,000 annually under the new appropriation for this purpose. The revenues credited to this appropriation account would include reimbursements for such shared activities as career fairs or conferences where other agencies have agreed to share the costs of the undertaking with DER. While the agency in the past has attempted to treat such revenues from other agencies as refunds of expenditures, state accounting procedures specify that these receipts should be recorded as revenues and the previously offset costs should be recognized as expenditures. Such expenditures would now be recorded in this new appropriation.
[Bill Section: 590]
7. ADDITIONAL STAFFING FOR THE WISCONSIN CITY AND COUNTY TESTING SERVICE
Funding Positions
PR $83,600 1.00
Governor: Provide the following additional resources to the agency's Wisconsin City and County Testing Service: $36,700 in 1999-00 and $46,900 in 2000-00 and 1.0 human resources specialist position for staff and other support costs associated with providing additional personnel support services for local units of government. Provisions of 1997 Wisconsin Act 237 newly authorized the agency to provide any type of personnel service, rather than just testing services, to local units of government. Revenues to support these increased expenditures would come from fee-for-service charges to local units of government for such assistance as the planning of recruitment strategies, implementing affirmative action plans, developing position descriptions and conducting wage surveys.
Although the Executive Budget Book indicates that all of these additional funds have been placed in unallotted reserve pending DER's submission to DOA of a marketing and business plan supporting this program expansion, no such placement of the funds has actually been included in the bill. A technical amendment would be needed to accomplish the Governor's intent.
8. ARBITRATION COST INCREASES
PR $30,000
Governor: Provide increased expenditure authority of $15,000 annually to fund the cost of fees for additional private sector arbitrators and court reporters to hear arbitrations of grievances arising under state collective bargaining agreements. Depending on the provisions of the applicable collective bargaining agreement, the employing agency and the labor union involved either equally divide the costs assessed by DER for the arbitrators and court reporters or the losing party pays all such costs. Base level expenditure authority for contract arbitration costs is currently $70,000 annually.
9. INCREASED PUBLICATIONS COSTS
PR $68,800
Governor: Provide additional expenditure authority of $27,400 in 1999-00 and $41,400 in 2000-01 for increased publications costs relating to a greater frequency of reprinting current forms and documents, postage and mailing increases, development of an electronic documents distribution system and publications marketing activities. Revenues to support these increased expenditures would come from increased subscription and position vacancy announcement charges for the Current Opportunities Bulletin.
10. AGENCY REORGANIZATION
Governor: Delete the separate numeric appropriation (accounting units below the legislative appropriation level) structure for the agency's Division of Classification and Compensation and transfer the base level funding for that Division to the numeric appropriation set up for the agency’s Division of Collective Bargaining. This transfer would establish a single consolidated numeric appropriation for the newly created Division of Compensation and Labor Relations. This recommended consolidation of existing numeric appropriations reflects the merger of the two divisions as part of an agency reorganization approved by DOA on September 2, 1998. Under this reorganization, base level funding of $1,144,000 GPR, $15,200 PR and 19.0 GPR positions annually would be transferred to the consolidated numeric appropriation, resulting in total base level funding for the new Division of $1,934,300 GPR, $85,400 PR and 30.0 GPR positions annually. There would be no net change to overall agency base level funding or position authorizations as a result of this consolidation.
EMPLOYMENT RELATIONS COMMISSION
Budget Change Items
1. STANDARD BUDGET ADJUSTMENTS
GPR $80,800
PR - 180,800
Total - $100,000
Governor: Provide $40,400 GPR and -$90,400 PR annually for standard budget adjustments for: (a) full funding of continuing salaries and fringe benefits costs ($11,800 GPR and -$90,500 PR annually); (b) full funding of financial services charges ($500 GPR and $100 PR annually); and (c) fifth week of vacation as cash ($28,100 GPR annually).
2. REQUIRED STATE OPERATIONS FUNDING LAPSE
GPR - $99,600
Governor: Reduce base level funding by $49,800 annually in the agency's general program operations appropriation to make permanent a 2% annual lapse requirement originally imposed by 1997 Wisconsin Act 27.
3. DATA TRANSMISSION AND DATABASE MANAGEMENT COST INCREASES
GPR $38,700
