Jim Doyle
Governor
__________________
April 15, 2004
To the Honorable Members of the Assembly:
I have approved Assembly Bill 859 as 2003 Wisconsin Act 256 and have deposited it in the Office of the Secretary of State. I have vetoed Section 3 (1)(b).
This bill increases funding for manufacturing extension grants by $750,000 GPR annually in fiscal years 2003-04 and 2004-05 and decreases funding to the Wisconsin Development Fund by $1,500,000 GPR in fiscal year 2003-04. In addition, the bill allows the Department of Commerce to award $1,500,000 in manufacturing extension grants in each fiscal year, beginning in fiscal year 2004-05. The bill also removes the restriction that organizations receiving manufacturing extension grants cannot receive grants and loans from the Wisconsin Development Fund.
While I fully endorse providing additional funds to promote and advance technology in manufacturing processes, I object to a reduction in funds to the departments Wisconsin Development Fund. This fund is a key tool in our statewide effort to grow Wisconsin. I am vetoing Section 3(1)(b) to delete the decrease of $1,500,000 GPR to the appropriation under s. 20. 143(l)(c). I am confident that the investments by the Manufacturing Extension Partnership and the Wisconsin Development Fund will result in economic benefits to Wisconsin that far exceed this additional expenditure.
Respectfully submitted,
Jim Doyle
Governor
A925__________________
Communications
State of Wisconsin
Office of the Secretary of State
Madison
To Whom It May Concern:
Acts, Joint Resolutions and Resolutions deposited in this office have been numbered and published as follows:
Bill Number Act Number Publication Date
Assembly Bill 738222April 26, 2004
Assembly Bill 265223April 26, 2004
Assembly Bill 652224April 26, 2004
Assembly Bill 341225April 26, 2004
Assembly Bill 390226April 26, 2004
Assembly Bill 533227April 26, 2004
AB 323 (in part)228April 27, 2004
Assembly Bill 812229April 27, 2004
Assembly Bill 650230April 27, 2004
Assembly Bill 437231April 27, 2004
Assembly Bill 485232April 27, 2004
Assembly Bill 608233April 27, 2004
Assembly Bill 695234April 27, 2004
Assembly Bill 868235April 27, 2004
Assembly Bill 913236April 27, 2004
Assembly Bill 197239April 27, 2004
Assembly Bill 519240April 27, 2004
Assembly Bill 13242April 27, 2004
Assembly Bill 157243April 27, 2004
Assembly Bill 200244April 27, 2004
Assembly Bill 210245April 27, 2004
Assembly Bill 286246April 27, 2004
Assembly Bill 424247April 27, 2004
Assembly Bill 530248April 27, 2004
Assembly Bill 623249April 27, 2004
Sincerely,
Douglas La Follette
Secretary of State
__________________
Referral of Agency Reports
State of Wisconsin
University of Wisconsin System
Madison
DATE: April 6, 2004

TO: Patrick E. Fuller
Assembly Chief Clerk
FROM: Katharine C. Lyall, President

TO: Report pursuant to s. 36.25 (14m)(c),
Wis. Stats.
At its meeting April 2, 2004, the Board of Regents accepted the attached report for submission to the Chief Clerk of each house of the Legislature for distribution to the appropriate standing committees under s. 13.172 (3).
Section 36.25 (14m)(c), Wis. Stats., requires the Board of Regents to submit a report to the Governor and to the Chief Clerk of each house of the legislature annually by April 15 on its precollege, recruitment, and retention plan for minority and disadvantaged students. The report must also include information on financial aid programs serving those students. The report for 2002-2003 is attached.
If you need additional information regarding this report, please contact Andrea-Teresa Arenas, Assistant Vice President for Academic Affairs, at 262-8636.
Referred to committee on Colleges and Universities.
__________________
State of Wisconsin
Department of Administration
Madison
April 7, 2004
To the Honorable, the Legislature:
In accordance with Wisconsin Statutes section 13.172 (2) and section 16.957 (2)(d)4, the department submits the FY2003 Annual Report on the Public Benefits Fund.
The Public Benefits Fund supports the Focus on Energy program and Wisconsin Home Energy Assistance programs.
If you would like to receive this report electronically, you may call Pat Middleton at 6-9770 to make that request.
Please let me know if you have any questions about the report or the programs.
Sincerely,
Marc J. Marotta
Secretary
Referred to committee on Energy and Utilities.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
April 14, 2004
To the Honorable, the Legislature:
At the request of the Department of Health and Family Services (DHFS), we have completed a financial audit of the Health Insurance Risk-Sharing Plan (HIRSP) for fiscal year (FY) 2002-03. HIRSP provides medical and prescription drug insurance for more than 17,000 policyholders who are unable to obtain coverage in the private market or who lost employer-sponsored group health insurance. We have provided an unqualified opinion on HIRSP's financial statements.
A926 HIRSP's financial position continues to improve: its accounting deficit was $0.9 million on June 30, 2003, compared to $6.0 million on June 30, 2002. In addition, a balance in the excess policyholder premium account increased significantly during FY 2002-03, from $3.0 million to $10.4 million as of June 30, 2003. By statute, the excess premium balance can be used only for purposes that benefit policyholders, such as for reducing premium levels to a statutory floor of 140 percent of standard risk rates.
Despite an improving financial position, HIRSP faces continuing management and funding challenges because of increasing enrollment and claims costs. In FY 2002-03, enrollment increased 16.9 percent and claims costs increased 27.8 percent. In addition, general purpose revenue (GPR) support was eliminated beginning in FY 2003-04. Costs previously covered by GPR, which totaled $10.2 million in FY 2002-03, are now covered by policyholders, insurers, and health care providers. Further, legislative action will be needed to address a technical issue that DHFS and HIRSP's contracted actuary have identified in HIRSP's statutory funding formula.
During our prior audit, we recommended DHFS increase its oversight of prescription drug claims, which totaled $32.4 million in FY 2002-03, through independent audits of the pharmacy benefit management company's controls. DHFS is currently conducting a competitive procurement process to select the plan administrator that will be administering HIRSP beginning in January 2005, and it has included a requirement for such audits in the Request for Vendor Proposals that will be used to award a new contract.
We appreciate the courtesy and cooperation extended to us by DHFS and the plan administrator for HIRSP. A response from DHFS follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
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