I firmly believe the Council will continue its efforts to cultivate the climate of diversity in both Wisconsin State government and the university campuses around the state.
Sincerely,
Karen E. Timberlake
Director
State of Wisconsin
Legislative Audit Bureau
May 6, 2004
The Honorable, The Legislature:
At your request, we have completed a limited-scope review of the finances of the Milwaukee Brewers Baseball Club from 1994 through 2003. Our review was initiated following reports that the Brewers intended to reduce player payroll for the 2004 season. Under a January 2004 agreement with the Brewers, we were permitted to independently review financial statements and related documentation. This is the second time we have assessed the Brewers' finances. The first was in 1995, during legislative deliberations on the proposal to use a combination of public and private funding to build the new stadium that opened in 2001 as Miller Park.
Our review of the Brewers' financial statements and information provided by Major League Baseball indicates that the club has faced significant financial challenges. For example, although the Brewers' operating revenues increased from $67.7 million in 2000 to $115.9 million in 2003, or by 71.2 percent, they were lower in these years than operating revenues of many other major league clubs. In 2002 - the latest year for which comparison information is available - the Brewers ranked 20th among 30 clubs in operating revenues. When Miller Park opened in 2001, the Brewers ranked 16th.
The Brewers' operating expenses increased from $80.0 million in 2000 to $103.8 million in 2003, or by 29.7 percent. However, a 2.1 percent reduction in spending between 2002 and 2003 raises concerns about the club's ability to compete in the future if additional reductions are made, particularly to major league player compensation. Further, the Brewers have borrowed heavily: the financial statements indicate $133.2 million in outstanding debt at the end of 2003.
We reviewed concerns expressed by the public and many legislators about the club's ownership group. We found no evidence to indicate that club resources had been used during our review period to purchase ownership shares with the intention of benefiting continuing club owners. In addition, although owner Allan (Bud) Selig, his daughter, and her husband were employed in executive positions with the Brewers for all or part of the past ten years, these three individuals' combined annual compensation was never more than $735,500. This is less than amounts previously reported by some in the media.
As the Legislature continues to evaluate the effect of the Brewers' financial condition on the public's investment in Miller Park, we suggest close monitoring of the Brewers' ongoing relationship with the Southeast Wisconsin Professional Baseball Park District, including the effect that a proposed sale of the franchise could have on this relationship. The District issued revenue bonds and imposes the 0.1 percent local sales and use tax that was the primary source of funding for stadium construction and continues to fund District operations. Through March 31, 2004, $175.9 million in sales and use tax revenue has been collected in Milwaukee, Ozaukee, Racine, Washington, and Waukesha counties. The tax is expected to continue until 2014.
The Brewers indicate that no other professional sports team has granted the level of access to financial records that we were provided during this review. We greatly appreciate the courtesy and cooperation extended to us in conducting our work, as well as the responsiveness of Milwaukee Brewers Baseball Club staff in responding to our questions.
Sincerely,
Janice Mueller
State Auditor
__________________
State of Wisconsin
Office of the Governor
May 10, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Moore
, James E.,
of Kaukauna, as a member of the Prison Industries Board, to serve for the term ending May 1, 2008.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Judiciary, Corrections and Privacy.
State of Wisconsin
Office of the Governor
May 11, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Thorn
, Ellen M.,
of Sparta, as a member of the Public Defender Board, to serve for the term ending May 1, 2007.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Judiciary, Corrections and Privacy.
State of Wisconsin
Office of the Governor
May 11, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Haney
, James M.,
of Plover, as a member of the Judicial Commission, to serve for the term ending August 1, 2005.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Judiciary, Corrections and Privacy.
State of Wisconsin
Office of the Governor
May 11, 2004
The Honorable, The Senate:
S789
I am pleased to nominate and with the advice and consent of the Senate, do appoint
Brennan, James M.,
of Kaukauna, as a member of the Public Defender Board, to serve for the term ending May 1, 2007.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Judiciary, Corrections and Privacy.
__________________
Relating to public employee safety and health.
Submitted by Department of Commerce.
Report received from Agency, May 17, 2004.
Referred to committee on Labor, Small Business Development and Consumer Affairs, May 18, 2004
.
Relating to allowing the operation of double bottoms and certain other vehicles on certain specified highways.
Submitted by Department of Transportation.
Report received from Agency, May 17, 2004.
Referred to committee on Transportation and Information Infrastructure, May 18, 2004
.
__________________
The committee on Agriculture, Financial Institutions and Insurance reports and recommends:
Relating to the small employer uniform employee application.
No action taken, Ayes 5, Noes 0.
Ayes, 5 - Senators
Schultz, Brown, Kedzie, Hansen and Lassa.
Noes, 0 - None.
Dale Schultz
Chairperson
The committee on Health, Children, Families, Aging and Long Term Care reports and recommends:
Relating to the definitions of client and psychological treatment, degree requirements, interim determination of degree requirements met, continuing education courses, and professional conduct.
No action taken.
Carol Roessler
Chairperson
__________________
Senator Panzer, with unanimous consent, asked that the Senate adjourn until Wednesday, at 10:30 A.M.
Adjourned.
1:01 P.M.