Madison, Wisconsin 53703
Dear Chief Clerk Fuller:
Pursuant to Assembly Rule 3, I have made the following changes to the appointments to the two joint committees of the Legislature listed below:
Joint Committee for Review of Administrative Rules: Representative Berceau will replace Representative Kreuser.
Joint Legislative Council: Representative Nelson will replace Representative Berceau.
Should you have any questions, please contact my office.
Mike Huebsch
Assembly Speaker
Executive Communications
State of Wisconsin
Office of the Governor
November 16, 2007
To the Honorable Members of the Assembly:
The following bills, originating in the Assembly, have been approved, signed and deposited in the office of the Secretary of State:
Bill Number   Act Number   Date Approved
Assembly Bill 153   31   November 16, 2007
Assembly Bill 425   32   November 16, 2007
Respectfully submitted,
JIM Doyle
November 14, 2007
Speaker Mike Huebsch
211 West State Capitol
Madison, WI 53707
Dear Speaker Huebsch:
I respectfully request the following changes to the Joint Committees listed below. The Assembly Democratic membership, effective immediately, should be as follows:
A363 Joint Committee for Review of Administrative Rules: Representatives Spencer Black and Terese Berceau
Joint Legislative Council Committee: Representatives Jim Kreuser, Thomas Nelson, Mark Pocan and Marlin Schneider
Thank you in advance for your consideration.
Jim Kreuser
Assembly Democratic Leader
State of Wisconsin
Office of the Secretary of State
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 153   31   December 3, 2007
Assembly Bill 425   32   December 3, 2007
Douglas La Follette
Secretary of State
Referral of Agency Reports
State of Wisconsin
Department of Administration
November 15, 2007
To the Honorable, the Legislature:
Attached please find the Department of Administration's contractual service purchasing report for Fiscal Year 2007 pursuant to §16.705(8), Wis. Stats. This report also includes information on cost‐benefit analyses produced by state agencies and campuses during FY07. I am pleased to announce positive results that inure to the benefit of state taxpayers.
The State of Wisconsin significantly reduced contracting costs in FY07. Overall contracting decreased from $489.8 million in FY06 to $419.6 million in FY07. These results represent a one‐year reduction of more than $70 million, or 14%, and continue a longer‐term downward trend in state contracting. Contractual services represented 16% of total state operation costs in FY07.
In addition, state government in FY07 fully implemented cost‐benefit legislation signed by Governor Doyle in January 2006. Wisconsin Act 89 requires state agencies and campuses to conduct a cost‐benefit analysis prior to each proposed contractual service procurement over $25,000. This report includes a summary of the more than 240 cost‐benefit analyses produced during FY07.
These results are consistent with Governor Doyle's directives to make government run more resourcefully. State government will continue to seek ways to reduce costs, eliminate inefficiencies, and create sustainable sources of savings for state and local governments.
If you have questions about this report, please contact James Langdon, Deputy Administrator, DOA Division of Enterprise Operations, at 267‐2715.
Michael L. Morgan
Referred to committee on State Affairs.
Agency Reports
State of Wisconsin
Legislative Audit Bureau
November 16, 2007
To the Honorable, the Assembly:
As directed by s. 13.94 (1)(p), Wis. Stats., we have completed a limited‐scope review of the Private Employer Health Care Coverage Program created by 1999 Wisconsin Act 9. The Department of Employee Trust Funds (ETF) and the Private Employer Health Care Coverage Program Board were to have established a voluntary purchasing pool designed to allow a large number of small employers to provide a choice of competing health plans for their employees, reduce administrative costs, provide leverage in negotiating lower premiums, and reduce financial risk for insurers. It has not been implemented, in part because of a lack of interest by insurers, and program development efforts ended in 2003.
ETF and the Board attempted to design an actuarially sound statewide program and to contract with a private program administrator, as required by statutes. However, no contract proposals were received in response to a request issued by ETF in November 2000. Potential administrators cited numerous concerns, including the risk of adverse selection, which occurs when an insurance pool attracts individuals who have greater health care needs and are more expensive to serve, but not those who are less‐expensive to serve and can pay lower premiums elsewhere.
After working with insurers and representatives of small employers, seeking changes to statutory program requirements, and commissioning an independent study, ETF and the Board recommended in March 2003 that the program be repealed, the Board disbanded, and any remaining funds returned to the General Fund. The Legislature has taken no further action on the Private Employer Health Care Coverage Program but has developed other proposals to expand access to health care for small employers, including several bills introduced in the 2007 session. Other states have established small employer purchasing pools with mixed results.
We appreciate the courtesy and cooperation extended to us by ETF staff during the course of our review.
Janice Mueller
State Auditor