State of Wisconsin
Legislative Audit Bureau
November 6, 2001
The Honorable, The Legislature:
We have completed an evaluation of the State of Wisconsin Investment Board, as directed by s.
25.17(51m), Wis. Stats. As of December 31, 2000, the Investment Board managed a total of $67.0 billion in investments that included assets of the Wisconsin Retirement System, the State Investment Fund, and five smaller insurance and trust funds.
The Investment Board has recently been successful in exceeding its performance benchmarks for the Fixed Retirement Trust Fund, which represented 81.8 percent of the assets under its management in 2000. However, the Fixed Retirement Trust Fund's long-term returns continue to lag those of other large public pension funds. As of June 30, 2000, its five-year returns ranked last among ten funds we surveyed.
We focused our analysis on the Investment Board's Opportunity Portfolio for the Fixed Retirement Trust Fund, which is a higher-risk portfolio that has focused on private equity investments in emerging markets in Asia and Eastern Europe. The portfolio, which has assets of approximately $1 billion, has failed to meet its performance benchmarks and is not meeting expectations of earning higher returns that the Investment Board achieves through its more traditional investments. In light of the lagging returns and controversy surrounding certain investments in South Korea, support for the portfolio among members of the Board of Trustees is divided. Another area of concern is the Board of Trustees' involvement in the Opportunity Portfolio. Of particular concern is the fact that some trustees own public stock in entities associated with the portfolio, These interests have previously not been publicly disclosed. We suggest that to avoid the appearance of conflicts of interest, the Investment Board revisit its policies to ensure trustees comply with provisions of the State Ethics Code.
We appreciate the courtesy and cooperation extended to us by the Investment Board. A response from the Board's Executive Director is Appendix 5.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Department of Revenue
November 1, 2001
The Honorable, The Legislature:
I am submitting the quarterly report of the Wisconsin Lottery for the quarter ending June 30, 2001. As required by s.
565.37(3), Wis. Stats., the attached materials contain unaudited Wisconsin Lottery year to date Sales and Expenditure information.
The summary information reported here is not intended to be a complete financial accounting of the Wisconsin Lottery Fund.
If you have any questions or comments regarding this report, please feel free to contact me at (608) 266-6466.
Sincerely,
Richard G. Chandler
Secretary of Revenue
__________________
Relating to hazardous air pollutant emissions from pulp and paper mills.
Submitted by Department of Natural Resources.
Report received from Agency, November 6, 2001.
Referred to committee on Environmental Resources, November 7, 2001.
Relating to sport fishing and commercial fishing for yellow perch in Green Bay.
Submitted by Department of Natural Resources.
Report received from Agency, November 6, 2001.
Referred to committee on Environmental Resources, November 7, 2001.
Relating to safe drinking water standards for radionuclides.
Submitted by Department of Natural Resources.
Report received from Agency, November 6, 2001.
Referred to committee on Environmental Resources, November 7, 2001.
__________________
By John A. Scocos, chief clerk.
Mr. President:
I am directed to inform you that the Assembly has passed and asks concurrence in:
Assembly Bill 39
Assembly Bill 109
Assembly Bill 256
Assembly Bill 263
Assembly Bill 326
Assembly Bill 327
Assembly Bill 373
Assembly Bill 427
Assembly Bill 436
Assembly Bill 464
Assembly Bill 470
Assembly Bill 580
Adopted and asks concurrence in:
Assembly Joint Resolution 65
Assembly Joint Resolution 72
Concurred in:
Senate Bill 259
__________________
Assembly Bill
39
Relating to: requiring the elections board to make recommendations regarding statewide voter registration and maintenance of a statewide voter registration list.
By committee on Campaigns and Elections.
Read first time and referred to committee on Universities, Housing, and Government Operations.
Relating to: surveys and questionnaires of pupils and providing a penalty.
By Representatives Pettis, Krawczyk, Ziegelbauer, Gronemus, Wade, Ainsworth, Owens, Urban, Hahn, Grothman, Albers, F. Lasee, McCormick and Vrakas; cosponsored by Senators Darling, Farrow and Lazich.
Read first time and referred to committee on Education.
Assembly Bill
256
Relating to: licensing perfusionists, creating a perfusionists examining council, and granting rule-making authority.
By Representatives Skindrud, Berceau, Duff, Gunderson, Hahn, La Fave, Musser, Ott, Plale, Shilling and Urban; cosponsored by Senators Erpenbach, Burke, George, Grobschmidt, M. Meyer, Plache, Risser and Rosenzweig.
Read first time and referred to committee on Health, Utilities, Veterans and Military Affairs.
Assembly Bill
263
Relating to: special event campground permits issued by the department of health and family services and granting rule-making authority.
By Representatives Johnsrud, Wade, Suder, Musser, Freese, Krawczyk, Townsend, Ott, Sykora and M. Lehman; cosponsored by Senators Schultz and Roessler.
Read first time and referred to committee on Universities, Housing, and Government Operations.
Assembly Bill
326
Relating to: expenditure of $12,600 from the general fund in payment of a claim against the state made by Alan and Marlene Sieker.
By Representatives Albers and Ziegelbauer; cosponsored by Senator Burke
, by request of Claims Board.
Read first time and referred to committee on Universities, Housing, and Government Operations.
Assembly Bill
327
Relating to: expenditure of $9,296 from moneys appropriated to the department of transportation in payment of a claim against the state made by Robert and Dorothy Messner.
By Representative
Albers
; cosponsored by Senator Burke
, by request of Claims Board
.
Read first time and referred to committee on Universities, Housing, and Government Operations.
Assembly Bill
373
Relating to: notice regarding ineligibility to vote.
