June 17, 2005
To the Honorable, the Legislature:
As required by s.
14.065, and on behalf of the Governor, I am transmitting a recommended modification to the Stripper XX Oil Overcharge Plan, and requesting the Joint Committee on Finance consider this modification at their next s.
13.10, Wis. Stats., meeting.
The modification is to the Ethanol Refueling Infrastructure program, which was allocated $230,000 of Stripper XX monies. The oil overcharge monies were for the development, installation and promotion of an E-85 refueling infrastructure in southeastern Wisconsin. E-85 is a mixture of 85 percent ethanol and 15 percent gasoline.
I am proposing that the program be modified so that the remaining unspent oil overcharge monies ($77,495), along with approximately $22,605 of matching monies from the Wisconsin Corn Growers can be used to fund E-85 infrastructure development and installation throughout Wisconsin. This will allow the monies to be used most effectively in responding to the statewide demand for E-85 refueling facilities.
I appreciate your support in helping Wisconsin increase its use of a home grown renewable energy resource. If you have any questions or need additional details regarding the proposed program modification, please contact Kimberly R. Walker, Administrator for the Division of Energy, at 261-6357.
Sincerely,
Gina Frank-Reece,
Deputy Secretary
Department of Administration
Referred to committee on Energy and Utilities.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
June 22, 2005
To the Honorable, the Legislature:
We have examined the Indian Gaming, Racing, and Charitable Gaming programs administered by the Division of Gaming in the Department of Administration, as required by s.
13.94(1)(eg), Wis. Stats. We have issued an unqualified opinion on the Division's budgetary financial schedules for the three-year period from fiscal year (FY) 2001-02 through FY 2003-04.
A346
Under the terms of the tribal-state gaming compacts, this office and the Department of Administration receive copies of independent financial audits of all Class III gaming operations for the 11 tribes that operate gaming facilities in Wisconsin. Based on these audited statements, total tribal revenue increased from $889.5 million in 2000 to almost $1.2 billion in 2004, or by 34.1 percent. Tribal expenditures increased from $470.8 million in 2000 to $676.2 million in 2004, or by 43.6 percent. Gaming profits, which are used by the tribes for payments to tribal members or for other purposes, increased from $418.7 million to $516.3 million, or by 23.3 percent.
Payments to the State increased under the 2003 compact amendments that were signed by 10 of the 11 tribes. The State received tribal payments of nearly $24.9 million in FY 2002-03 and $69.6 million in FY 2003-04. However, projecting future tribal payments is difficult pending the outcome of negotiations in response to a 2004 Wisconsin Supreme Court decision that invalidated certain compact provisions. In addition, because future payments to the State will be based on a percentage of net revenues, rather than on the lump-sum amounts most tribes paid in the past, it will be important for the Department of Administration to ensure that payments are correctly calculated and received in a timely manner. We note a number of potential concerns in these areas.
From FY 2001-02 through FY 2003-04, pari-mutuel tax revenue generated from greyhound racing and bingo tax revenue has declined. Nevertheless, during the three-year period we examined, the Racing and Charitable Gaming programs provided nearly $4.0 million to the Lottery Fund for property tax relief.
We appreciate the courtesy and cooperation extended to us by the Department of Administration and the 11 tribal nations located in Wisconsin. A response from the Department of Administration follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
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Representative Bies moved that the Assembly stand adjourned until 10:00 A.M. on Thursday, June 30.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
10:46 A.M.
