Sections
48.685(5g) and
50.065(5g) of the Wisconsin Statutes direct the Department to submit an annual report to the Legislature that specifies the number of persons who have sought waivers of employment or licensing bans by requesting to demonstrate that they have been rehabilitated. The report must also specify the number of requests that were approved and the reasons for the success or failure of the requests. Attached is the report for 2008.
Questions about this report should be referred to Diane Welsh, Chief Legal Counsel, at 608-266-1404.
Sincerely,
karen e. timberlake
Secretary
__________________
State of Wisconsin
Legislative Audit Bureau
January 27, 2009
The Honorable, The Legislature:
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.
Respectfully Submitted,
janice mueller
State Auditor
__________________
Relating to analytical methods used for Wisconsin pollutant discharge monitoring system (WPDES) compliance monitoring.
Submitted by Department of Natural Resources.
Report received from Agency, January 22, 2009.
Referred to committee on Environment,
January 26, 2009.
Relating to examinations for substance abuse professionals.
Submitted by Department of Regulation and Licensing.
Report received from Agency, January 22, 2009.
Referred to committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue,
January 26, 2009.
