Introduction.
Ayes, 16 - Senators
Burke, Decker, Moore, Shibilski, Wirch, Robson, Darling and Welch. Representatives Gard, Kaufert, Albers, Duff, Ward, Huebsch, Huber and Riley.
Noes, 0 - None.
To joint committee on Finance.
Brian Burke
Senate Chairperson
Pursuant to Senate Rule
36(2)(c) and section 13.52(6), Wisconsin Statutes, the Co-Chairs of the Joint Survey Committee on Tax Exemptions shall prepare and submit a report in writing setting forth an opinion on the desirability of
Senate Bill 55, relating to state finances and appropriations, constituting the executive budget act of the 2001 legislature, as a matter of public policy.
Pursuant to Senate Rule
36(2)(c) and section 13.50(6), Wisconsin Statutes, the Co-Chairs of the Joint Survey Committee on Retirement Systems shall prepare and submit a report in writing setting forth an opinion on the desirability of
Senate Bill 55, relating to state finances and appropriations, constituting the executive budget act of the 2001 legislature, as a matter of public policy.
__________________
State of Wisconsin
February 20, 2001
The Honorable, The Senate:
I will be unable to attend the Joint Committee on Finance meeting of February 20, 2001. Therefore, I am submitting my resignation from the committee.
I will be available to resume my position immediately for the next committee meeting. If you have any questions, please do not hesitate to contact me.
Sincerely,
Kimberly M. Plache
State Senator
State of Wisconsin
February 20, 2001
The Honorable, The Senate:
Pursuant to Senate Rule
20(2)(a), I have appointed Senator Judy Robson to the Joint Committee on Finance.
Sincerely,
Chuck Chvala
Chair, Committee on Senate Organization
State of Wisconsin
Office of the Governor
February 6, 2001
The Honorable, The Senate:
This is to inform you that I am withdrawing the nomination of George Meyer as Secretary of the Department of Natural Resources.
Thank you for your attention to this matter.
Sincerely,
Scott McCallum
Governor
State of Wisconsin
Legislative Audit Bureau
February 1, 2001
The Honorable, The Legislature:
This biennial report on the operations and performance of the Legislative Audit Bureau covers the period January 1, 1999 through December 31, 2000. It summarizes the Bureau's statutory responsibilities, significant developments affecting the Bureau, and reports released during the past two years and is required under s.
13.94(1)(j), Wis. Stats.
The Bureau conducts financial and program evaluation audits to assist the Legislature in its oversight of executive branch agencies. The Bureau's reports are received and reviewed by the Joint Legislative Audit Committee, whose 1999-2000 members were:
Senator Gary R. George, Co-chairperson
Senator Judith Robson
Senator Brian Burke
Senator Peggy Rosenzweig
Senator Mary Lazich
Representative Carol Kelso, Co-chairperson
Representative Stephen Nass
Representative John Gard
Representative Robert Ziegelbauer
Representative David Cullen
In total, we released 42 numbered reports during the biennium, as well as several dozen other documents of a narrow scope or intended for a limited audience. We make every effort to deliver accurate, timely, and useful analyses that enhance the accountability of state government, and we look forward to serving the Legislature, the Governor, and the people of Wisconsin in the coming years.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Legislative Audit Bureau
February 15, 2001
The Honorable, The Legislature:
S91
At the request of several legislators including Senator George, who first requested it, we have performed a limited review of the State's settlement with Fort James Corporation for natural resource damages to the Fox River. A legal settlement between the Department of Natural Resources (DNR), the Wisconsin Department of Justice, and Fort James Corporation stipulated that the State will not sue Fort James for natural resource damages arising from the release of polychlorinated buphenyls (PCBs) into the Fox River. In exchange, Fort James has agreed to provide or fund several environmental restoration projects at a cost that has been estimated to be $7.0 million. The settlement agreement, which was signed November 15, 2000, is subject to acceptance by the United States District Court for the Eastern District of Wisconsin.
Several aspects of the settlement agreement have been controversial, including the confidential nature of the negotiations that preceded the settlement; the use of consultants paid for by Fort James and other paper companies to value the environmental damages for which the State and local governments are to be compensated; the models used to value the environmental losses sustained; and the objections raised by the U.S. Fish and Wildlife Service, whose staff were not included in the negotiations. However, DNR strongly defends its approach as reasonable and effective. Based on our review, we have identified several issues that are contentious, may result in limited opportunities for legislative oversight, or are unresolved at this time.
We appreciate the courtesy and cooperation extended to us by DNR, the Department of Justice, and the Fish and Wildlife Service in conducting this review.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Legislative Audit Bureau
February 16, 2001
The Honorable, The Legislature:
We have completed a review of Employment Solutions, Inc. (ESI) and 15 other Wisconsin Works (W-2) agencies as part of a comprehensive audit of the state wide implementation of the W-2 program. We have identified charges for out-of-state work and other unallowable and questioned expenditures by ESI that are similar to those we identified for Maximus, Inc., an agency that also administers the W-2 program in Milwaukee County.
We identified $270,268 in unallowable costs that were related to ESI's activities outside of Wisconsin but charged to the W-2 program. Most were related to unsuccessful efforts to acquire a contract for administration of Arizona's welfare-to-work program. Our findings suggest the extent of ESI's out-of-state activities was greater than the agency had indicated.
Among $3.6 million in additional transactions for ESI, we identified $35,899 in unallowable cots and questioned another $61,234 in expenditures charged to the w-2 program. Unallowable and questioned transactions include expenditures for entertaining ESI employees, advertising, legal services, local hotel charges,and a variety of restaurant and other food charges.
We also reviewed staff performance incentives that were charged to the W-2 program by three agencies in 1999. ESI provided substantially higher incentives that the other agencies, partly because ESI has chosen to make a portion of employees' compensation contingent upon performance. ESI's incentives averaged $9,635 each for the 84 employees receiving them. ESI's chief executive officer received a total of $61,645 in 1999; that amount reflects incentive payments for performance in 1998 and 1999.
Finally, we identified $12,604 in unallowable costs and $114,487 in questioned costs made by six other W-2 agencies.
We appreciate the courtesy and cooperation extended to us by the W-2 agencies and the Department of Workforce Development during the course of our review.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Department of Administration
February 12, 2001
The Honorable, The Legislature:
This report is transmitted as required by sec. 20.002(11)(f) of the Wisconsin Statutes, (for distribution to the appropriate standing committees under sec. 13.172(3) Stats.), and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative balances during the month of January 2001.
On January 1, 2001, the Wisconsin Health Education Loan Repayment Fund balance was -$11 thousand. This shortfall increased to -$13 thousand on January 17, 2001, decreased to -$2 thousand on January 24, 2001, and continued into the month of February. As of the date of this letter, it is expected to be resolved soon. This shortfall is due to the timing of revenues.
On January 1, 2001 the Utility Public Benefits Fund balance was -$3.18 million. This shortfall decreased to -$1.76 million on January 4, 2001, increased to -$2.13 million on January 11, 2001, to -$3.08 million on January 23, 2001, to -$4.24 million on January 30, 2001, and continued into the month of February. As of the date of this letter, it is expected to be resolved soon. This shortfall is due to the timing of revenues.
On January 25, 2001 the University Trust-Income Fund balance was -$32 thousand. This shortfall decreased to -$24 thousand on January 26, 2001 and continued until January 29, 2001 when the balance reached $1.95 million. This shortfall was due to the timing of revenues.
The Wisconsin Health Education Loan Repayment Fund, Utility Public Benefits Fund, and University Trust-Income Fund shortfalls were not in excess of the statutory interfund borrowing limitation and did not exceed the balances of the Funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority.
Sincerely,
George Lightbourn
