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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
February 16, 2007
To the Honorable, the Assembly:
We have completed a financial audit of the State of Wisconsin Unemployment Reserve Fund for the years ended June 30, 2006 and 2005. We performed the audit at the request of the Department of Workforce Development (DWD) and to meet our audit responsibilities under s.
13.94, Wis. Stats.
Our audit report contains our unqualified opinion on the financial statements and related notes. It does not discuss DWD's ongoing development of computer software to support the Unemployment Insurance program, which we will address in a future evaluation.
During the period of this audit, the seasonally adjusted unemployment rate was lower than in prior years and ranged between 4.5 percent and 5.0 percent. However, unemployment benefit payments and other expenses exceeded employer contributions and other revenues. Consequently, the Unemployment Reserve Fund's balance continued to decline from its high of $1.9 billion as of June 30, 2000. The Fund's balance was $971.0 million at the start of our audit period and $895.0 million as of June 30, 2006.
2005 Wisconsin Act 86 directed DWD to study the long‐term financial stability of the Fund and report to the Unemployment Insurance Advisory Council by July 1, 2007, on any measures required to maintain the Fund's stability.
As part of our audit, we matched data on unemployment benefit payments and individuals in the custody of the Department of Corrections. From this work, it was determined that two prisoners had inappropriately received $2,697 in unemployment benefits. We have therefore recommended in a separate audit communication that DWD work with the Department of Corrections to periodically identify any similar instances of inappropriate benefit payments.
We appreciate the courtesy and cooperation extended to us by DWD staff during the audit.
Respectfully submitted,
Janice Mueller
State Auditor
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Representatives Kerkman and Vos introduced Jim Wanasek of Burlington, the first Hometown Hero Award recipient of the 2007‐2008 Session, who addressed the members from the rostrum.
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Representative Honadel asked unanimous consent that the Assembly stand recessed. Granted.
The Assembly stood recessed.
11:37 A.M.
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5:14 P.M.
The Assembly reconvened.
Speaker Pro Tempore Gottlieb in the chair.
Representative J. Fitzgerald asked unanimous consent for a quorum call. Granted.
A quorum was present.
Representative Roth asked unanimous consent that his leave of absence be lifted. Granted.
Representative Wood asked unanimous consent that his leave of absence be lifted. Granted.
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Representative J. Fitzgerald asked unanimous consent that the rules be suspended and that
Senate Joint Resolution 7 be withdrawn from the committee on
Rules and taken up at this time. Granted.
Senate Joint Resolution 7
Relating to: the life and public service of Jerris Leonard.
The question was: Shall Senate Joint Resolution
7 be concurred in?
Motion carried.
Representative J. Fitzgerald asked unanimous consent that the rules be suspended and that Senate Joint Resolution 7 be immediately messaged to the Senate. Granted.
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Assembly Joint Resolution 9
Relating to: celebrating March 1, 2007, as St. David's Day.
The question was: Shall Assembly Joint Resolution 9 be adopted?
Motion carried.
Representative J. Fitzgerald asked unanimous consent that the rules be suspended and that Assembly Joint Resolution 9 be immediately messaged to the Senate. Granted.
Assembly Bill 31
Relating to: elimination of accumulated sick leave credit program for legislators, justices and judges, and all other state elected officials.
Representative Nass asked unanimous consent to be made a coauthor of Assembly Bill 31. Granted.
Assembly substitute amendment 1 to Assembly Bill 31 offered by Representative Strachota.
Assembly substitute amendment 2 to Assembly Bill
31 offered by Representative Kaufert.
Representative Kaufert asked unanimous consent that Assembly substitute amendment 2 to Assembly Bill 31 be withdrawn and returned to the author. Granted.
Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill
31 offered by Representative Boyle.
Representative Boyle asked unanimous consent that Assembly amendment 1 to Assembly substitute amendment 1 to Assembly Bill 31 be withdrawn and returned to the author. Granted.
Assembly amendment 2 to Assembly substitute amendment 1 to Assembly Bill
31 offered by Representatives M. Williams, Albers and Kaufert.
Representative J. Fitzgerald moved that Assembly amendment 2 to Assembly substitute amendment 1 to Assembly Bill 31 be laid on the table.
The question was: Shall Assembly amendment 2 to Assembly substitute amendment 1 to Assembly Bill 31 be laid on the table?
The roll was taken.
The result follows:
Ayes - Representatives Berceau, Black, Boyle, Davis, J. Fitzgerald, Friske, Gottlieb, Gunderson, Gundrum, Hahn, Hines, Hixson, Honadel, Hubler, Kerkman, Kestell, Kleefisch, Kramer, F. Lasee, LeMahieu, Lothian, Meyer, Montgomery, Moulton, Murtha, Musser, Nass, Nerison, Newcomer, Nygren, J. Ott, Owens, Petersen, Petrowski, Pridemore, Rhoades, Schneider, Seidel, Sinicki, Stone, Strachota, Suder, Tauchen, Toles, Vos, Vruwink, Vukmir, Wood, Young, Zipperer and Speaker Huebsch - 51.
Noes - Representatives Albers, Benedict, Bies, Colon, Cullen, Fields, Garthwaite, Grigsby, Gronemus, Hebl, Hilgenberg, Hintz, Hraychuck, Jeskewitz, Jorgensen, Kaufert, Kessler, Kreuser, Krusick, Mason, Molepske, Mursau, Nelson, A. Ott, Parisi, Pocan, Pope-Roberts, Richards, Roth, Sheridan, Sherman, Shilling, Smith, Soletski, Staskunas, Steinbrink, Townsend, Travis, Turner, Van Akkeren, Van Roy, Wasserman, Wieckert, A. Williams, M. Williams, Zepnick and Ziegelbauer - 47.
Absent or not voting - Representative Ballweg - 1.
Motion carried.
Assembly amendment 3 to Assembly substitute amendment 1 to Assembly Bill
31 offered by Representative Bies.
Representative Bies asked unanimous consent that Assembly amendment 3 to Assembly substitute amendment 1 to Assembly Bill 31 be withdrawn and returned to the author. Granted.
The question was: Shall Assembly substitute amendment 1 to Assembly Bill 31 be adopted?
The roll was taken.
The result follows:
Ayes - Representatives Bies, Cullen, Davis, J. Fitzgerald, Friske, Gottlieb, Gunderson, Gundrum, Hahn, Hines, Honadel, Hraychuck, Jeskewitz, Jorgensen, Kaufert, Kerkman, Kestell, Kleefisch, Kramer, Kreuser, Krusick, F. Lasee, LeMahieu, Lothian, Meyer, Montgomery, Moulton, Mursau, Murtha, Musser, Nelson, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Owens, Petersen, Petrowski, Pridemore, Rhoades, Richards, Roth, Sinicki, Steinbrink, Stone, Strachota, Suder, Tauchen, Van Roy, Vos, Vukmir, Wasserman, Wieckert, M. Williams, Wood, Zepnick, Ziegelbauer, Zipperer and Speaker Huebsch - 60.
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Noes - Representatives Albers, Benedict, Berceau, Black, Boyle, Colon, Fields, Garthwaite, Grigsby, Gronemus, Hebl, Hilgenberg, Hintz, Hixson, Hubler, Kessler, Mason, Molepske, Nass, Parisi, Pocan, Pope-Roberts, Schneider, Seidel, Sheridan, Sherman, Shilling, Smith, Soletski, Staskunas, Toles, Townsend, Travis, Turner, Van Akkeren, Vruwink, A. Williams and Young - 38.
Absent or not voting - Representative Ballweg - 1.
Representative Nass asked unanimous consent to be recorded as voting “Aye" on the previous question. Granted.
Motion carried.
The question was: Shall Assembly Bill 31 be ordered engrossed and read a third time?
Motion carried.
Representative J. Fitzgerald asked unanimous consent that the rules be suspended and that Assembly Bill 31 be given a third reading.
Representative Schneider objected.
Representative J. Fitzgerald moved that the rules be suspended and that Assembly Bill
31 be given a third reading.
The question was: Shall the rules be suspended and Assembly Bill 31 be given a third reading?
The roll was taken.
The result follows:
Ayes - Representatives Albers, Bies, Davis, J. Fitzgerald, Friske, Gottlieb, Gunderson, Gundrum, Hahn, Hines, Honadel, Jeskewitz, Kaufert, Kerkman, Kestell, Kleefisch, Kramer, F. Lasee, LeMahieu, Lothian, Meyer, Montgomery, Moulton, Mursau, Murtha, Musser, Nass, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Owens, Petersen, Petrowski, Pridemore, Rhoades, Roth, Stone, Strachota, Suder, Tauchen, Townsend, Van Roy, Vos, Vukmir, Wieckert, M. Williams, Wood, Zipperer and Speaker Huebsch- 51.
Noes - Representatives Benedict, Berceau, Black, Boyle, Colon, Cullen, Fields, Garthwaite, Grigsby, Gronemus, Hebl, Hilgenberg, Hintz, Hixson, Hraychuck, Hubler, Jorgensen, Kessler, Kreuser, Krusick, Mason, Molepske, Nelson, Parisi, Pocan, Pope-Roberts, Richards, Schneider, Seidel, Sheridan, Sherman, Shilling, Sinicki, Smith, Soletski, Staskunas, Steinbrink, Toles, Travis, Turner, Van Akkeren, Vruwink, Wasserman, A. Williams, Young, Zepnick and Ziegelbauer - 47.
Absent or not voting - Representative Ballweg - 1.
Motion failed.
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Visitors
During today's session, the following visitors honored the Assembly by their presence and were welcomed by the presiding officer and the members:
Nate Fiene of Weston, a 7th grade student from D.C. Everest Middle School, guest of Representative Seidel.
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Announcements
Representative Hraychuck asked unanimous consent that the Assembly adjourn in memory of 7 year‐old Zachery Wolf, who was murdered by his father on February 14. Granted.
Representative Williams asked unanimous consent that the Assembly adjourn in memory of Lance Corporal Andrew Gary Matus of Weyerhaeuser, who died on January 21 while serving in Iraq. Granted.
Representative Albers asked unanimous consent that the Assembly adjourn in memory of Richland County Deputy Sheriff Jerry Johnson of Richland Center, who was killed in a logging accident on February 17. Granted.
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