__________________
State of Wisconsin
Legislative Fiscal Bureau
October 18, 2010
The Honorable, The Legislature:
Under s.
16.40(3), of the statutes, the Department of Administration (DOA) is required to prepare, by October 15, an accounting of actual revenues and expenditures for the previous fiscal year. The Annual Fiscal Report for 2009-10 was released on October 15.
The report indicates that the gross, closing general fund balance for 2009-10 is $71 million. This is $265 million below the $336 million amount estimated at the conclusion of the 2009-10 legislative session. The $265 million variance is due to reduced departmental revenues (non-tax receipts deposited in the general fund) of $43 million and increased net expenditures of $222 million.
Revenues. Actual, general fund tax collections for 2009-10 were virtually identical to the estimated amount. Departmental revenues, however, were $43 million below the budgeted amount. This is primarily due to a reduction in estimated lapses/transfers to the general fund of $34 million and a decline in estimated tobacco settlement revenues of $14 million. These shortfalls were offset by increases, above estimated amounts, of tribal gaming revenues of $6 million and $10 million in fees collected by the Department of Financial Institutions. Other changes resulted in a net reduction of the remaining $11 million.
S876
2009 Acts 2 and
28 require that the DOA Secretary lapse/transfer $642 million to the general fund during 2009-11 biennium. Of this, it was budgeted that $334 million would be transferred to the general fund in 2009-10 and $308 million would be transferred in 2010-11. The actual lapse/transfer amount in 2009-10 was $308 million, $34 million less that what was budgeted. Thus, to meet the Act 2 and 28 requirements, that $34 million will need to be realized in 2010-11.
Net Appropriations. Net appropriations exceeded budgeted amounts by $222 million. This is primarily due to the fact the medical assistance (MA) program spent $207 million more than budgeted in 2009-10. To fund a shortfall in the MA program in 2009-10, the administration transferred amounts from the biennial appropriation for MA from 2010-11 to 2009-10. Similarly, $8 million was transferred from 2010-11 to 2009-10 to offset a shortfall in the private bar appropriation of the Office of the Public Defender. In addition, a number of sum sufficient appropriations exceeded budgeted amounts by $19 million. These expenditure increases were offset by reduced spending in fuel and utilities ($9 million) an compensation reserves ($3 million).
Regarding medical assistance, it is currently estimated that the GPR appropriation for that program will be insufficient by approximately $148 million for the 2009-11 biennium. To address this shortfall, the Department of Health Services (DHS) intends to seek approval to apply an estimated surplus in the SeniorCare program appropriation of $20 million to MA. DHS also intends to seek approval to delay certain MA capitation payments that would otherwise be paid to managed care organizations in May, 2011, to the 2011-12 fiscal year, thereby reducing the 2009-11 shortfall by an additional $44 million GPR. With respect to the remaining projected GPR deficit of $84 million, the Department is exploring a number of alternatives including seeking additional federal matching funds.
If you have questions regarding this memorandum or the 2009-10 fiscal report, please contact me.
Sincerely,
Bob lang
Director
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The committee on Commerce, Utilities, Energy, and Rail reports and recommends:
Relating to electric rate changes due to the cost of fuel.
Modifications requested, Ayes 7, Noes 0.
Ayes, 7 - Senators
Plale, Wirch, Erpenbach, Kreitlow, Cowles, Harsdorf and Kedzie.
Noes, 0 - None.
relating to the siting of wind energy systems.
Modifications requested, Ayes 7, Noes 0.
Ayes, 7 - Senators
Plale, Wirch, Erpenbach, Kreitlow, Cowles, Harsdorf and Kedzie.
Noes, 0 - None.
Jeffrey Plale
Chairperson
