To the Honorable, the Assembly:
At the request of the Department of Workforce Development and to meet our audit responsibilities under s.
13.94, Wis. Stats., we have audited the financial statements of the State of Wisconsin Unemployment Reserve Fund, which funds unemployment benefits paid to eligible workers, primarily through taxes paid by employers. The Unemployment Reserve Fund operates on a fiscal year that ends June 30. This audit report contains our unqualified opinion on financial statements and related notes for the years ended June 30, 2008 and 2007. During our audit period, the seasonally adjusted unemployment rate ranged between 4.3 percent and 5.1 percent, and unemployment benefit payments exceeded employer payments to the Unemployment Reserve Fund.
As a result, the Fund's balance has continued to decline from its high of $1.9 billion as of June 30, 2000. As of June 30, 2008, the Unemployment Reserve Fund balance was $608.8 million. It has continued to decline after that date, and as of November 30, 2008, $312.0 million was available to pay benefits. The Department expects that the Fund's cash balances will be depleted in February 2009, at which time borrowed federal funds will be needed in order to continue unemployment benefit payments.
2007 Wis. Act 59 included several provisions to strengthen the Unemployment Reserve Fund, including increasing the amount of wages subject to unemployment taxes starting in calendar year 2009, with additional increases in 2011 and 2013. However, given current economic conditions, it is unclear whether anticipated increases in revenues from the taxes paid by employers will be sufficient to restore the Fund's balances, and further changes may be needed to increase employer taxes or reduce unemployment benefit payments.
Accompanying the financial statements is the Schedule of Cash Balance Related to Taxable Employers, which is used to determine the tax rate paid by employers. Section
108.18 (3m), Wis. Stats., requires the second-highest tax rate schedule to be applied when the cash balance as of June 30 is between $300 million and $900 million. Consequently, the second-highest of four tax rate schedules will continue to be applied in calendar year 2009.
We appreciate the courtesy and cooperation extended to us by Department of Workforce Development staff during the audit.
Sincerely,
Janice Mueller
State Auditor
__________________
A36
Representative Barca asked unanimous consent that the Assembly stand recessed. Granted.
The Assembly stood recessed.
11:20 A.M.
__________________
1:46 P.M.
The Assembly reconvened.
Speaker Pro Tempore Staskunas in the chair.
Representative Nelson asked unanimous consent for a quorum call. Granted.
A quorum was present.
Representative Gunderson asked unanimous consent that his leave of absence be lifted. Granted.
Representative Ziegelbauer asked unanimous consent that his leave of absence be lifted. Granted.
The committee on Rules introduced a privileged resolution.
__________________
Assembly Resolution 3
Relating to: establishing a special order of business for Wednesday, January 28, 2009.
By
committee on Rules.
The question was: Shall Assembly Resolution 3 be adopted?
The roll was taken.
The result follows:
Ayes - Representatives Ballweg, Barca, Benedict, Berceau, Bernard Schaber, Bies, Black, Brooks, Clark, Colon, Cullen, Danou, Davis, Dexter, Fields, J. Fitzgerald, Friske, Garthwaite, Gottlieb, Grigsby, Gunderson, Gundrum, Hebl, Hilgenberg, Hintz, Hixson, Honadel, Hraychuck, Hubler, Huebsch, Jorgensen, Kaufert, Kerkman, Kessler, Kestell, Kleefisch, Knodl, Kramer, Krusick, LeMahieu, Lothian, Mason, Meyer, Milroy, Molepske Jr., Montgomery, Mursau, Murtha, Nass, Nelson, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Parisi, Pasch, Petersen, Petrowski, Pocan, Pope-Roberts, Pridemore, Radcliffe, Rhoades, Richards, Ripp, Roth, Roys, Schneider, Seidel, Sherman, Shilling, Sinicki, Smith, Soletski, Spanbauer, Staskunas, Steinbrink, Stone, Strachota, Suder, Tauchen, Toles, Townsend, Turner, Van Akkeren, Van Roy, Vos, Vruwink, Vukmir, A. Williams, M. Williams, Wood, Young, Zepnick, Ziegelbauer, Zigmunt, Zipperer and Speaker Sheridan - 99.
Noes - None.
Absent or not voting - None.
Motion carried.
Assembly Bill 5
Relating to: payment of Wisconsin supplemental and extended unemployment insurance benefits in this state.
Assembly Bill 5 was made a special order of business at 10:01 A.M. on Wednesday, January 28, 2009 pursuant to Assembly Resolution 3. Granted.
Representative Gottlieb introduced a privileged joint resolution.
__________________
Assembly Joint Resolution 3
Relating to: creating the Joint Committee on Economic Stimulus Accountability.
By
Representatives Gottlieb, J. Fitzgerald, Ballweg, Bies, Brooks, Davis, Friske, Gunderson, Gundrum, Honadel, Huebsch, Kaufert, Kerkman, Kestell, Kleefisch, Knodl, Kramer, LeMahieu, Lothian, Meyer, Montgomery, Mursau, Murtha, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Petersen, Petrowski, Pridemore, Rhoades, Ripp, Roth, Spanbauer, Stone, Strachota, Suder, Tauchen, Townsend, Van Roy, Vos, Vukmir, M. Williams and Zipperer.
To committee on Rules.
__________________
Assembly Bill 1
Relating to: state procurement of products and services from businesses located in this state and setting a goal for local government to purchase a certain percentage of products and services from businesses located in this state.
Assembly amendment 1 to Assembly amendment 1 to Assembly Bill 1 offered by Representatives Petersen and Spanbauer.
The question was: Shall Assembly amendment 1 to Assembly amendment 1 to Assembly Bill
1 be adopted?
The roll was taken.
The result follows:
A37
Ayes - Representatives Ballweg, Barca, Benedict, Berceau, Bernard Schaber, Bies, Black, Brooks, Clark, Colon, Cullen, Danou, Davis, Dexter, Fields, J. Fitzgerald, Friske, Garthwaite, Gottlieb, Grigsby, Gunderson, Gundrum, Hebl, Hilgenberg, Hintz, Hixson, Honadel, Hraychuck, Hubler, Huebsch, Jorgensen, Kaufert, Kerkman, Kessler, Kestell, Kleefisch, Knodl, Kramer, Krusick, LeMahieu, Lothian, Mason, Meyer, Milroy, Molepske Jr., Montgomery, Mursau, Murtha, Nelson, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Parisi, Pasch, Petersen, Petrowski, Pocan, Pope-Roberts, Pridemore, Radcliffe, Rhoades, Richards, Ripp, Roth, Roys, Schneider, Seidel, Sherman, Shilling, Sinicki, Smith, Soletski, Spanbauer, Staskunas, Steinbrink, Suder, Tauchen, Toles, Townsend, Turner, Van Akkeren, Van Roy, Vos, Vruwink, Vukmir, A. Williams, M. Williams, Wood, Young, Zepnick, Zigmunt, Zipperer and Speaker Sheridan - 95.
Noes - Representatives Nass, Stone, Strachota and Ziegelbauer - 4.
Absent or not voting - None.
Motion carried.
The question was: Shall Assembly amendment 1 to Assembly Bill 1 be adopted?
Motion carried.
The question was: Shall Assembly amendment 2 to Assembly Bill 1 be adopted?
Motion carried.
Assembly amendment 3 to Assembly Bill 1 offered by Representatives Krusick, Clark and Zipperer.
The question was: Shall Assembly amendment 3 to Assembly Bill 1 be adopted?
Motion carried.
The question was: Shall Assembly Bill 1 be ordered engrossed and read a third time?
Motion carried.
Representative Nelson asked unanimous consent that the rules be suspended and that Assembly Bill
1 be given a third reading. Granted.
The question was: Assembly Bill 1 having been read three times, shall the bill be passed?
The roll was taken.
The result follows:
Ayes - Representatives Barca, Benedict, Berceau, Bernard Schaber, Bies, Black, Brooks, Clark, Colon, Cullen, Danou, Davis, Dexter, Fields, Friske, Garthwaite, Grigsby, Hebl, Hilgenberg, Hintz, Hixson, Honadel, Hraychuck, Hubler, Huebsch, Jorgensen, Kaufert, Kessler, Kestell, Krusick, Mason, Meyer, Milroy, Molepske Jr., Montgomery, Mursau, Murtha, Nelson, Nerison, Nygren, A. Ott, J. Ott, Parisi, Pasch, Petersen, Petrowski, Pocan, Pope-Roberts, Radcliffe, Rhoades, Richards, Ripp, Roth, Roys, Schneider, Seidel, Sherman, Shilling, Sinicki, Smith, Soletski, Spanbauer, Staskunas, Steinbrink, Tauchen, Toles, Townsend, Turner, Van Akkeren, Vruwink, A. Williams, M. Williams, Young, Zepnick, Zigmunt, Zipperer and Speaker Sheridan - 77.
Noes - Representatives Ballweg, J. Fitzgerald, Gottlieb, Gunderson, Gundrum, Kerkman, Kleefisch, Knodl, Kramer, LeMahieu, Lothian, Nass, Newcomer, Pridemore, Stone, Strachota, Suder, Van Roy, Vos, Vukmir, Wood and Ziegelbauer - 22.
Absent or not voting - None.
Motion carried.
Representative Nelson asked unanimous consent that the rules be suspended and that Assembly Bill
1 be immediately messaged to the Senate. Granted.
Assembly Bill 2
Relating to: state procurement of contractual services.
Assembly amendment 1 to Assembly Bill 2 offered by Representatives Zipperer and Ballweg.
The question was: Shall Assembly amendment 1 to Assembly Bill 2 be adopted?
The roll was taken.
The result follows:
Ayes - Representatives Ballweg, Bies, Davis, J. Fitzgerald, Friske, Gottlieb, Gunderson, Gundrum, Honadel, Huebsch, Kaufert, Kerkman, Kestell, Kleefisch, Knodl, Kramer, Krusick, LeMahieu, Lothian, Meyer, Montgomery, Mursau, Murtha, Nass, Nerison, Newcomer, Nygren, A. Ott, J. Ott, Petersen, Petrowski, Pridemore, Rhoades, Ripp, Roth, Spanbauer, Stone, Strachota, Suder, Tauchen, Townsend, Van Roy, Vos, Vukmir, M. Williams, Ziegelbauer and Zipperer - 47.
Noes - Representatives Barca, Benedict, Berceau, Bernard Schaber, Black, Brooks, Clark, Colon, Cullen, Danou, Dexter, Fields, Garthwaite, Grigsby, Hebl, Hilgenberg, Hintz, Hixson, Hraychuck, Hubler, Jorgensen, Kessler, Mason, Milroy, Molepske Jr., Nelson, Parisi, Pasch, Pocan, Pope-Roberts, Radcliffe, Richards, Roys, Schneider, Seidel, Sherman, Shilling, Sinicki, Smith, Soletski, Staskunas, Steinbrink, Toles, Turner, Van Akkeren, Vruwink, A. Williams, Wood, Young, Zepnick, Zigmunt and Speaker Sheridan - 52.
Absent or not voting - None.
Motion failed.
Assembly amendment 2 to Assembly Bill 2 offered by Representatives Zipperer, Strachota and Krusick.
Representative Molepske Jr. moved that Assembly amendment 2 to Assembly Bill 2 be laid on the table.
The question was: Shall Assembly amendment 2 to Assembly Bill 2 be laid on the table?
The roll was taken.
The result follows: