State of Wisconsin
Legislative Audit Bureau
February 26, 2010
The Honorable, The Legislature:
We have completed a limited-scope review of the Wisconsin Health and Educational Facilities Authority (WHEFA) as authorized in s.
231.19(1), Wis. Stats. Through June 2009, WHEFA has issued 603 revenue bonds totaling more than $14.5 billion on behalf of tax-exempt healthcare and certain educational institutions. The tax-exempt bonds help the borrowing institutions finance capital projects. They are not debt or obligations of the State of Wisconsin and are repaid solely by the borrowing institutions.
WHEFA has no taxing power and does not receive state appropriations. It is governed by a seven-member board and has four full-time employees, whose salaries and fringe benefits are its primary operating costs. WHEFA funds those costs with annual fees paid by borrowing institutions.
As of June 30, 2009, WHEFA accumulated a surplus balance of $3.1 million, which is more than four times its annual operating expenses. We include a recommendation that WHEFA continue to carefully monitor its surplus balance for appropriateness. We are also concerned that the WHEFA Board's actions to increase compensation for the Executive Director have had the effect of circumventing a statutory salary limit on the Executive Director's salary. Since 2005, the WHEFA Board has provided him with 40 days of vacation each year. WHEFA paid him for unused leave, including vacation and sick leave, by making annual deposits into the Wisconsin Deferred Compensation Program. As a result, the Executive Director's annual compensation has exceeded the statutory limit established for his position by an average of $16,200 annually. In addition, we believe WHEFA is incorrectly reporting some unused leave as earnings that will effectively increase its employees' pension benefits under the Wisconsin Retirement System. We include recommendations for the Legislature to take steps to address these concerns and for WHEFA to work with the Department of Employee Trust Funds to correctly report future earnings.
We appreciate the courtesy and cooperation extended to us by the WHEFA Board and staff in completing this review.
Sincerely,
janice Mueller
State Auditor
__________________
Submitted by Public Service Commission.
Report received from Agency, February 23, 2010.
Referred to committee on Commerce, Utilities, Energy, and Rail, February 26, 2010.
Relating to electronic recording and release of liens by non-individual creditors.
Submitted by Department of Transportation.
Report received from Agency, February 25, 2010.
Referred to committee on Transportation, Tourism, Forestry, and Natural Resources, February 26, 2010.
Relating to fees for plan review and inspection of public swimming pools and water attractions and affecting small business.
Submitted by Department of Commerce.
Report received from Agency, February 24, 2010.
Referred to committee on Commerce, Utilities, Energy, and Rail, February 26, 2010.
__________________
The committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue reports and recommends:
Relating to combined reporting for corporation franchise and income tax purposes.
No action taken.
Jon Erpenbach
Chairperson
__________________
By Patrick E. Fuller, chief clerk.
Mr. President:
I am directed to inform you that the Assembly has passed and asks concurrence in:
Assembly Bill 116
Assembly Bill 247
Assembly Bill 296
Assembly Bill 482
Assembly Bill 549
Assembly Bill 552
Assembly Bill 588
Assembly Bill 600
Assembly Bill 633
Assembly Bill 642
Concurred in:
Senate Bill 116
Senate Bill 215
Senate Bill 244
Senate Bill 332
Senate Bill 439
Senate Bill 471
__________________
Assembly Bill
260
Relating to: extraterritorial plat approval on basis of land's use.
By Representatives Smith, Jorgensen, Roth, Hubler, Schneider, Vruwink, Danou, Fields, Clark, Dexter, Ripp, Kerkman, Kestell, Bies, Brooks, Gunderson, A. Ott, Ballweg and Suder; cosponsored by Senators Kreitlow, Vinehout, Holperin, Harsdorf and Olsen.
Read first time and referred to committee on Rural Issues, Biofuels, and Information Technology.
Assembly Bill
470
Relating to: membership of the Natural Resources Board.
By Representatives Vruwink, Garthwaite, Black, Tauchen, Hubler, Radcliffe, Molepske Jr., Danou, Hebl, Strachota, A. Williams, Zepnick and Brooks; cosponsored by Senator Schultz
.
Read first time and referred to committee on Transportation, Tourism, Forestry, and Natural Resources.
Assembly Bill
495
Relating to: membership of the Natural Resources Board.
By Representatives Danou, Zigmunt, Black, Vukmir, Molepske Jr., Radcliffe, Strachota, Vruwink, Sinicki, Mason and Van Roy.
Read first time and referred to committee on Transportation, Tourism, Forestry, and Natural Resources.
Assembly Bill
514
Relating to: time limitations for commencing prosecution of crimes.
By Representatives Staskunas, Jorgensen, Parisi, Kerkman, Suder, Wood, Turner, Roys, Cullen, Gunderson, Berceau, Pope-Roberts, Sinicki, A. Ott, Knodl, Hraychuck and Ballweg; cosponsored by Senators Risser, A. Lasee, Olsen, Coggs and Kedzie.
Read first time and referred to committee on Judiciary, Corrections, Insurance, Campaign Finance Reform, and Housing.
Assembly Bill
689
Relating to: Public Service Commission intervenor grants and making an appropriation.
By Representative
Pocan
; cosponsored by Senator Risser
.
Read first time and referred to committee on Commerce, Utilities, Energy, and Rail.
Assembly Bill
720
Relating to: repealing, consolidating, renumbering, amending, and revising various provisions of the statutes for the purpose of correcting errors, supplying omissions, correcting and clarifying references, eliminating defects, anachronisms, conflicts, ambiguities, and obsolete provisions, reconciling conflicts, and repelling unintended repeals (Correction Bill).
By Law Revision Committee.
Read first time and referred to committee on Ethics Reform and Government Operations.
Assembly Bill
742
Relating to: fuel products fees and inspection (suggested as remedial legislation by the Department of Commerce).
By Law Revision Committee.
Read first time and referred to committee on Commerce, Utilities, Energy, and Rail.
