27. Tourism 4,000,000 4,000,000 General tourism marketing, including grants to nonprofit tourism promotion organizations and specific earmarks.
28. University of Wisconsin System 0 0 Ashland full-scale aquaculture demonstration facility: debt service payments and operational costs. (No funding is provided in the 1999-01 biennium.)
29. Veterans Affairs 66,900 68,000 American Indian services coordinator project position and grants to assist American Indians in obtaining federal and state veterans benefits.
30. Workforce Development 350,000 350,000 Vocational rehabilitation services for Native American individuals and tribes or bands.
Program Revenue
Department 1999-00 2000-01 Purpose
31. Workforce Development $600,000 $600,000 Work-Based Learning Board grants for work-based learning programs.
Total Act 9 Allocations $20,191,900 $22,235,200
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 an identical amount of gaming revenue for the same purpose (funding provided in Act 9 reflects an increase previously approved under s. 16.515 of the statutes after the adjusted base was established).
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.
[Act 9 Sections: 546, 547, 3026 and 3027]
PR $1,030,700
2. TRIBAL GAMING COMPUTER SYSTEM [LFB Paper 155]
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.
Joint Finance/Legislature: Approve the provision. In addition, provide that the funding may not be expended or encumbered until a report on the costs associated with the computer system is approved by the Joint Committee on Finance under a 14-day passive review process.
Veto by Governor [F-2]: Delete the provision that the funding may not be expended or encumbered until a report on the costs associated with the computer system is approved by the Joint Committee on Finance under a 14-day passive review process.
[Act 9 Vetoed Section: 9101(17x)]
3. TRIBAL GAMING REGULATORY POSITIONS [LFB Paper 156]
Governor: Provide $242,800 in 1999-00 and $225,600 in 2000-01 and 5.0 positions annually 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.
Joint Finance/Legislature: Delete $84,200 in 1999-00 and $97,600 in 2000-01 and 2.0 positions annually (1.0 financial supervisor and 1.0 auditor position).
4. COMPULSIVE GAMBLING AWARENESS CAMPAIGNS [LFB Paper 164]
PR $372,000
Governor/Legislature: 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.
[Act 9 Sections: 455, 545 and 546 thru 548]
5. PARI-MUTUEL RACING POSITIONS
Funding Positions
PR - $258,800 - 3.00
Governor/Legislature: 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/Legislature: 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.
7. CONFORMANCE WITH 1999 ACT 5 PROVISIONS
Conference Committee/Legislature: Make the following technical changes to conform the 1999-01 biennial budget bill with the provisions of 1999 Act 5 relating to the use of certain gaming revenues for the lottery and gaming property tax credit:
a. Charitable Gaming Appropriations. Provide $247,400 PR and 4.0 PR positions annually for the bingo general program operations appropriation of the Division of Gaming in the Department of Administration. Delete $247,400 PR and 4.0 PR positions annually from the raffles and crane games general program operations appropriation of the Division. Correct the Chapter 20 schedule to reflect separate appropriations for raffles and crane games and for bingo. The modifications conform the appropriations for the regulation of charitable gaming in the 1999-01 biennium to the provisions of 1999 Act 5.
b. Pari-Mutuel Racing Revenue. Provide that any unencumbered balance in the racing general program operations appropriation of the Division of Gaming in the Department of Administration on June 30, 1999, would transfer to the lottery fund. Provide that an amount be transferred from the general fund to the lottery fund equal to any amounts transferred from the racing appropriation to the Department of Agriculture, Trade and Consumer Protection for agricultural aids or lapsed to the general fund on June 30, 1999. The provisions conform the bill to 1999 Act 5 and constitutional requirements that unencumbered racing revenue be used for property tax relief.
Veto by Governor [F-41]: Delete the provisions that: (a) any unencumbered balance in the racing general program operations appropriation of the Division of Gaming in the Department of Administration on June 30, 1999, would be transferred to the lottery fund; and (b) an amount be transferred from the general fund to the lottery fund equal to any amounts transferred from the racing appropriation to the Department of Agriculture, Trade and Consumer Protection for agricultural aids or lapsed to the general fund on June 30, 1999.
[Act 9 Section: 9101(20g)]
[Act 9 Vetoed Section: 9143(3h)]
8. UNCLAIMED PRIZES RETAINED BY RACETRACK LICENSEE
Senate/Legislature: Provide that, effective with the 2000 race year a pari-mutuel racetrack licensee may retain any winnings on a race that are not claimed within 90 days after the end of the race year. Under current law, unclaimed prizes are paid to the state and deposited to the racing general program operations appropriation in the Department of Administration and the gaming law enforcement appropriation relating to racing in the Department of Justice. Annual revenue from unclaimed prizes in the 1999-01 biennium is estimated at $814,000. The provision would take effect for the 2000 race year, reducing state revenues beginning in 2000-01.
Veto by Governor [F-3]: Delete provision.
[Act 9 Vetoed Sections: 481m, 545, 3023j and 9301(2g)]
9. LEGISLATIVE APPROVAL OF STATE-TRIBAL GAMING COMPACTS
Assembly: Require the Governor, before entering into any state-tribal gaming compact, to submit the proposed compact to the Legislature for approval. Provide that the Governor may not enter into any compact until the Legislature approves the compact by joint resolution. Require that, if the Legislature does not approve the proposed compact, the compact would be returned to the Governor for renegotiation.
Provide that the Governor may not concur with a determination of the U.S. Secretary of the Interior that a gaming establishment proposed to be located on tribal trust lands acquired after October 17, 1988, would not be detrimental to the surrounding community unless the Legislature approves the proposed gaming establishment by joint resolution.
Under current law, the Governor has the authority to negotiate state-tribal gaming compacts on behalf of the state. Under federal law, a tribal gaming establishment to be located on tribal trust land acquired after October 17, 1988, must be authorized by the U.S. Secretary of the Interior and agreed to by the Governor.
Conference Committee/Legislature: Adopt the Assembly provision but provide that legislative approval relating to Indian gaming establishments to be located on tribal trust lands acquired after October 17, 1998, would not be required for an Indian gaming establishment proposed to be located at Dairyland Greyhound Park.
Veto by Governor [F-17]: Delete provision.
[Act 9 Vetoed Sections: 7m thru 7q and 9301(1d)]
10. TRIBAL GAMING REVENUE FOR FARMLAND TAX RELIEF CREDIT
Senate: Provide that a share of a tribe’s payments under its state-tribal gaming compact would be applied towards the cost of the farmland tax relief credit, if the tribe acquires a pari-mutuel racetrack currently operating in Wisconsin and the tribe converts the racetrack into a casino gaming facility or expands the racetrack to include casino gaming. Provide that the amount so applied would be calculated on March 1 of each year, by: (a) dividing the net win in the prior calendar year at all of a tribe’s gaming facilities at which pari-mutuel racing is conducted and at which pari-mutuel racing was conducted on the effective date of this provision, by the net win in the prior calendar year at all of the tribe’s gaming facilities; and (b) multiplying the number calculated in (a) by the amount of Indian gaming receipts received by the state from the tribe in the prior calendar year. Provide that "net win" would be the amount wagered at an Indian gaming facility, less the amount paid out as winnings.
Conference Committee/Legislature: Adopt the Senate provision, but technically correct a requirement that would transfer the calculated share of tribal gaming payments to the lottery fund, to instead transfer the amount to a farmland tax relief credit appropriation authorized to receive Indian gaming receipts.
[Act 9 Sections: 586h, 612g, 612p, 1710db, 1744bd, 1757bd, 3025t, 3026h and 3026p]
General Statutory Provisions
1. AUTHORITY TO TRANSFER POSITIONS WITHIN DOA WITHOUT LEGISLATIVE APPROVAL [LFB Paper 180]
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.
Joint Finance/Legislature: Delete provision.
2. EXPANSION OF MASTER LEASE PROGRAM [LFB Paper 181]
a. Modify basic authority regulating the use of master leases.
Governor/Legislature: 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.
