These sections create a grant program in fiscal year 2018-19 for school districts to enter into a whole grade sharing agreement. Grants of $150 per pupil enrolled in a shared grade would be provided to school districts in the first four years of the agreement. In the fifth year, grants are prorated to 50 percent. In addition, the Department of Public Instruction is required to provide a report to the Joint Committee on Finance by February 1, 2019, regarding the number of grant applicants, the number of approved whole grade sharing agreements, the names of participating districts and the grades shared in each district, and how much of the appropriation is awarded or encumbered.
I am vetoing these sections in their entirety to eliminate the grant program for whole grade sharing and related reporting requirements. Whole grade sharing is intended to create savings, which should be a built-in incentive; however, school districts have not taken advantage of whole grade sharing since it became permissible under 2015 Wisconsin Act 55. Therefore, I believe these funds can be repurposed to support more effective programs that support rural schools. 36. Shared Services Aid
These sections create a grant program funded at $2,000,000 in fiscal year 2018-19 for school districts that share administrative functions with local governments or other school districts. Grants would be provided in the following amounts during the first three years of an agreement to share services: $40,000 for sharing a district administrator; $22,500 for sharing a human resources director, information technology coordinator or business manager; and $17,500 for other administrative positions, excluding principals and assistant principals. In the fourth year, grants are prorated to 50 percent, unless the parties to the agreement also are whole grade sharing.
I am vetoing these sections in their entirety to eliminate the grant program for shared services. Sharing services will create savings for school districts; therefore, providing state grants would nullify savings to taxpayers that would result from local actions. In addition, I believe these funds can be repurposed to support more effective programs that support rural schools.
37. Summer School Grants
Section 1482j [as it relates to grant eligibility and uses]
This provision creates a grant program in fiscal year 2018-19 for the Milwaukee Public Schools district and any other school district that receives a "fails to meet expectations" rating on its district report card. These competitive grants are to be awarded to school districts to increase attendance, improve low-performing schools, improve academic achievement and expose pupils to innovative learning activities, all through development, redesign or implementation of a summer school program.
I am partially vetoing this provision to create a grant to the Milwaukee Public Schools for summer school programs. The program proposed in my Executive Budget was targeted to the district to augment the Milwaukee Public Schools district's summer school expansion efforts. I object to the expansion of eligibility because it will dilute the funding, and therefore effectiveness, of the funds in the district. I also believe that language specifying outcomes is unnecessary absent a competitive process, and would diminish the ability of a district to employ the funds in the most effective way. As a result of this veto, the district will receive a grant of $1,400,000 in fiscal year 2018-19 for summer school programs, and no other districts will be eligible to apply for these funds.
38. Virtual Charter School Funding Study
Section 9135 (1t)
This provision requires the Department of Public Instruction to submit a report by January 1, 2019, to the Joint Committee on Finance and appropriate standing legislative committees comparing open enrollment payments and the actual costs of educating virtual charter school pupils.
I am vetoing this provision to eliminate the report. I object to the increased administrative burden on the department.
39. Mental Health Services Grants
Sections 1470g [as it relates to eligibility criteria] and 9135 (4f) [as it relates to an advisory committee]
These sections create a grant program to fund increased collaborations among school district personnel and community mental health service providers. Under these sections, eligible grantees are public schools, independent charter schools, consortia of schools or school districts, or cooperative education service agencies. Applicants for grants must: (a) require providers or contractors to bill Medical Assistance or an appropriate health insurance company for any goods or services provided as part of the collaboration, and (b) seek nonstate funding for costs not covered by Medical Assistance or insurance. The Department of Public Instruction has authority to define additional grant parameters. The department also is required to establish an advisory committee to make recommendations about grant parameters and awards, members of which must include: (a) a current or retired school administrator, (b) a teacher or pupil services license holder, (c) a mental health service provider or representative of a mental health service provider association, (d) a family member of a potential service recipient, and (e) a representative of a school board or charter school. The department is further required to award the full appropriated amount in each year.
I am partially vetoing these sections as they relate to requirements on applicants and the requirement for an advisory committee. I believe schools should have maximum flexibility in designing and implementing these collaborations and therefore the statutes creating the program should be general, not prescriptive. In addition, the requirement for an advisory committee is burdensome. As a result of this veto, the department will have broad flexibility to specify grant criteria in administrative rule without an official advisory committee; however, the department should seek input from interested parties informally.
Workforce Development
40. Technical Education Equipment Grants
This provision creates a technical education equipment grant program, allows the Department of Workforce Development to allocate up to $500,000 GPR annually from the department's workforce training grants appropriation, and requires that: (a) the department award grants of no more than $50,000 to school districts whose grant applications are approved by the department, (b) school districts use dollars for the acquisition of equipment in advanced manufacturing fields, (c) a school district shall provide matching funds equal to 200 percent of the grant amount awarded, (d) school districts apply in accordance to the procedures established by the department, (e) the secretary of the department appoint an advisory committee to review and evaluate applications, and (f) school districts receiving a grant file a report with the department the first three years following the fiscal year in which the grant was received.
I am partially vetoing the provision to delete the requirement for the department secretary to appoint an advisory committee because this provision is administratively burdensome. The department presently seeks input from stakeholders and subject matter experts on a variety of issues and therefore a statutory advisory committee is unnecessary.
C. General Government, Children and Families
Department of Administration
41. Positions for Information Technology Purchasing Report
Section 9101 (11q)
Section 9101 (11q) requires the Department of Administration to submit a report to the Joint Committee on Finance by August 31, 2018, regarding the activities of four new positions added in fiscal year 2017-18, including: (a) any identified accomplishments such as process improvements or major information technology procurements that were done efficiently or effectively, (b) any savings that the department estimates resulted from the initiative, and (c) plans for additional improvement or projects in fiscal year 2018-19. The 4.0 FTE PR-S positions, split between the divisions responsible for information technology and procurement services, are vacancies from other agencies that have been repurposed for this initiative, which is anticipated to generate savings from standardizing and streamlining contract, procurement and information technology practices. It is estimated that state agencies, excluding the University of Wisconsin System, spent $445 million on information technology procurement in fiscal year 2015‑16. For every 1 percent in reductions to these purchases, the state could save $4.45 million.
I am vetoing this section to remove the reporting requirement because I believe that placing reporting requirements in the statutes is both unnecessary and encroaches on the executive branch's responsibility to manage state agency programs within the statutes and funding levels set by the Legislature. This type of information can be requested by legislators or the legislative service agencies at any time without creating an unfunded mandate in the statutes.
42. Replacement of Information Technology Contractors Report
Section 9101 (11s)
Section 9101 (11s) requires the Department of Administration to submit a report to the Joint Committee on Finance by August 31, 2018, regarding the activities performed in fiscal year 2017-18 by new permanent positions, which were added to replace contractor staff, including: (a) accomplishments such as system or process improvements, progress or completion of projects, or finished work products; (b) any additional savings or efficiencies that the department can estimate resulted from the work of the positions; and (c) plans or additional improvements, projects or work products for fiscal year 2018-19. Replacing information technology contractors with 54.0 FTE PR-S positions will generate savings of $463,100 PR-S in fiscal year 2017-18 and $3,712,100 PR-S in fiscal year 2018-19.
I am vetoing this section to remove the reporting requirement because I believe that placing reporting requirements in the statutes is both unnecessary and encroaches on the executive branch's responsibility to manage state agency programs within the statutes and funding levels set by the Legislature. This type of information can be requested by Legislators or the legislative service agencies at any time without creating an unfunded mandate in the statutes.
43. State Transforming Agency Resources (STAR) Program and Benefits Realization Report
Section 169t
Section 169t requires the Department of Administration to submit a report to the Joint Committee on Finance and the Joint Committee on Information Policy and Technology once every six months, beginning in October 2017, relating to the management of the STAR enterprise resource planning system, including: (a) year-to-date expenditures for related system appropriations, (b) master lease originations since the date of the last report, (c) state agency assessments (most recently charged as well as estimated for future fiscal years), (d) the status of the appropriation deficits, and (e) updated information relating to the department's efforts regarding benefits realization, including any actual or anticipated savings or efficiencies associated with the STAR system.
I am vetoing this section to remove this ongoing reporting requirement because I believe that it is unnecessary and redundant to information that has already been and will be provided to the Legislature. The department has been transparent about the implementation and financing of the STAR system, including presentations at the Joint Committee on Information Policy and Technology informational hearing on November 10, 2015, and on March 8, 2017, presentations on the new STAR assessment to all agencies in the spring of 2016, and written updates on each STAR release to the Legislature on February 3, 2016; December 30, 2016; and March 7, 2017. Furthermore, the department has provided, and will continue to provide until the appropriation is no longer in deficit, a significant amount of financial information each year when it submits its spending plan as required under s. 16.513. 44. Self-Funded Portal Annual Report
Section 172
Section 172 requires the Department of Administration to submit a report to the Joint Committee on Finance and Legislature by October 1 of each year that includes: (a) a financial statement of the state's self-funded portal revenues and expenditures for the fiscal year; (b) a list of the services available through the portal, including the addition of services available since the previous fiscal year; (c) the amounts of any fees charged for each of the services; and (d) a summary of the activity levels of the services provided, as well as any other information the department wishes to provide. The portal does not have a cost to taxpayers, but is fee-based and user-driven by agencies and customer demand for services.
I am vetoing this section to remove the reporting requirement because I believe that it encroaches on the executive branch's responsibility to manage state agency programs within the statutes and funding levels set by the Legislature. In the Executive Budget, the department requested the conversion of the self-funded portal appropriation from annual to continuing, which would have given the department more flexibility in managing the appropriation and expanding the number of e-projects based on existing fee revenue available. As part of this request, the department was directed to report to the Legislature on these projects. Given that the Joint Committee on Finance elected to reject this proposal, it will be involved directly in any expenditure authority increase and can request any additional information it would like at that time.
45. Office of the Commissioner of Insurance Information Technology Position Transfers Report
Section 9101 (11c)
Section 9101 (11c) requires the Department of Administration, in consultation with the Office of the Commissioner of Insurance, to prepare a report on information technology services provided to the office and, specifically, any efficiencies created through consolidation during the 2017-19 biennium. This report is to be submitted with the department's 2019-21 budget request.
I am vetoing this section to remove the reporting requirement because I believe that it is unnecessary as the biennial savings related to this initiative have already been estimated at 2.0 FTE PR positions and $216,900 PR. If additional information is of interest, it can be requested of each agency during the 2019-21 biennial budget process.
46. Worker's Compensation Recording Equipment Report
Section 9101 (11i)
Section 9101 (11i) requires the Department of Administration's Division of Hearings and Appeals to conduct a study of the audio and visual needs of worker's compensation hearings and to present the findings no later than June 30, 2018, to the Worker's Compensation Advisory Council, which may submit a recommendation to the division regarding the recording equipment that would be sufficient to replace a court reporter for inclusion in the department's 2019-21 biennial budget request. The proposal included in the Executive Budget would have eliminated the requirement that court reporters record testimony at worker's compensation hearings and would have resulted in a reduction of 4.0 FTE PR-S positions and a savings of $555,000 PR-S in each year. Wisconsin is the only state with a central panel hearing structure to still have court reporters on staff.
I am vetoing this section to remove the requirement to study the issue further and present to the advisory council because I believe that it is unnecessary as this study can be conducted by the division without creating a statutory requirement.
Sections 161d, 161e and 9301 (2f)
This provision specifies that the Department of Administration may not enter into, extend or renew an executive branch agency lease with an annual rent of more than $500,000 unless the secretary signs the lease, a copy of the proposed lease is submitted electronically to the Chief Clerk of each house of the Legislature, and the department notifies the Joint Committee on Finance of the proposed lease and provides the following information and a summary report to the Committee: (a) a cost-benefit analysis comparing the lease with purchasing the space or another suitable space, and (b) an evaluation of comparable lease options within a ten-mile radius of the property proposed in the lease or, if there are not sufficient comparable properties within a ten-mile radius to perform a meaningful comparison, a wider radius as needed to ensure the lease rate per square foot does not exceed the lease rate per square foot on comparable properties or the market rate by more than 5 percent. Each proposed lease would be subject to a 14-day passive review process.
I am vetoing these sections in their entirety because I object to these additional restrictions on the state leasing program. Approving leases is a statutory responsibility of the Department of Administration and the State Building Commission, which includes legislative members. In addition, I am concerned that some landlords could try to use the proposed legislative approval process to circumvent the procurement process. However, I understand the policy goal behind this provision of ensuring that state agencies are evaluating alternatives before entering into large, long-term leases in order to find the most cost-effective option and consequently, I am directing the department to review and improve its existing evaluation procedures for these types of leases.
48. Fee Report with Agency Budget Requests
Section 139m
_Hlk493062499This provision requires each executive branch agency to include in its biennial budget request a report identifying: (a) each fee the agency is authorized to charge, (b) the amount of each fee or method of calculating the fee, (c) the statutory authority to charge the fee, (d) a statement of whether or not the fee is currently charged, (e) a description of how each fee has changed over time, and (f) any recommendation the agency has concerning each fee. _Hlk493061316I am vetoing this provision because I object to these requirements as they are burdensome and not directly related to the budget development process. In addition, although it is unclear what the legislative intent is behind this new mandate, the Legislature (or its service agencies) already has access to this information and has the authority to request any additional information at any time. 49. On-Site Delivery of Human Resources, Payroll and Benefit Functions at Select Agencies
Section 73
This section requires the Division of Personnel Management within the Department of Administration to provide human resources and payroll and benefit services to most executive branch agencies, beginning on July 1, 2018. It also requires the department to submit an annual report to the Joint Committee on Finance by April 15 under 14-day passive review that includes: (a) the assessments that the department intends to charge each agency for human resources, payroll and benefit services in the upcoming fiscal year; (b) the number of positions that the department is using to administer these services; (c) the number of vacant and filled positions the department no longer needs to administer these services; (d) the cost savings to the state due to the administration of these services; and (e) the metrics evaluating the effectiveness of these services provided to participating agencies by the department in the previous fiscal year, as well as a comparison of the metrics for the previous fiscal year to similar metrics in previous reports. If the Committee schedules a meeting within the 14-day time frame, the department may not provide human resources, payroll and benefit functions or charge the assessments proposed in the report without the approval of the Committee.
The provision also requires the Department of Administration to provide human resources, payroll and benefit services on-site for the Department of Corrections, Department of Health Services, Department of Veterans Affairs and State Fair Park Board, beginning on July 1, 2018.
I am partially vetoing the provision that requires the Department of Administration to provide human resources, payroll and benefit services on-site for select agencies because it will restrict the department’s ability to achieve the maximum enterprisewide staffing flexibility and efficiency possible from the human resources shared services initiative. Concerns regarding the location of human resources, payroll and benefit services and staffing levels can be addressed through service level agreements that will be negotiated between agencies and the Department of Administration's Division of Personnel Management.
Department of Children and Families
50. Homeless Shelter Employment Services Grant Uses
Section 129
This section defines the types of entities that could receive Homeless Shelter Employment Services Grant funds to include shelter facilities as well as nonprofit organizations that partner with local governments, religious organizations, local businesses and charitable organizations to provide individuals and families with rent assistance and intensive case management. For each type of organization, it also defines the services that shall be provided, including specifically that nonprofit organizations shall use the funds for the purpose of providing immediate housing relocation services, including paying rent on behalf of participants in private housing.
I am partially vetoing this section because the expansion of eligible organizations beyond shelter facilities and the inclusion of rent assistance as an allowable use of grant funds could diminish the intended effect of the grant dollars, which was to provide funding to existing Homeless Management Information System or State Shelter Subsidy Grant-participating homeless shelters for social workers and associated case management services. Expanding grants to organizations other than homeless shelters will reduce the ability of shelters to provide case management services. In addition, including rent assistance as an allowable use of grant funds could direct more funds to a short-term housing solution rather than the long-term employment solution achieved through case management services.
51. Work Participation Rate Reporting Requirements
Section 9106 (3w)
This provision requires the Department of Children and Families to submit periodic reports regarding performance on work participation rate targets in the Temporary Assistance for Needy Families (TANF) program; progress on any compliance programs with the federal Department of Health and Human Services; and the appeals process for any TANF penalties related to work participation rate requirements. Reports would be required every six months, starting September 15, 2017, and ending March 15, 2019. The department would also be required to present a plan on or before October 1, 2018, for Joint Committee on Finance approval, to improve work participation rates in the TANF program. This provision also encourages, but does not require, the department to include a request for a waiver under section 1115 of the Social Security Act.
I am partially vetoing this provision because statutory language specifying the timing of reporting intervals, requiring a plan for Committee approval, and encouraging a section 1115 waiver is unnecessary. I support requiring the department to be more accountable regarding work participation rate issues, but it is sufficient for the department to periodically report updated information when it has it, which won’t be on September 15, 2017, given the budget delay and may not be on six-month intervals. Requiring the submittal of an improvement plan for approval and language encouraging a section 1115 waiver are unnecessary because the worker supplement created in the budget is the mechanism that the department will use to improve work participation rates in the state’s Wisconsin Works program.
Elections Commission
52. Funding for Elections Commission Positions
_Hlk493082646This provision allocates funding and permanent position authority for Elections Commission positions currently funded by federal Help America Vote Act funding. The current 22.0 FTE FED positions were previously approved with an end date of the end of fiscal year 2016-17 and the federal funding supporting these positions is expected to be exhausted at some point during fiscal year 2018-19. The provision creates 21.0 FTE FED permanent positions and provides federal expenditure authority in fiscal year 2017-18 and provides 21.0 FTE GPR positions and funding in fiscal year 2018-19. The Executive Budget recommended funding and position authority for only 16.0 FTE positions. I am partially vetoing this provision by lining out the appropriation under s. 20.510 (1) (x) and writing in a smaller amount in fiscal year 2017-18 and lining out the appropriation under s. 20.510 (1) (a) and writing in a smaller amount in fiscal year 2018-19. The reduction in each year is $304,100 and is equivalent to the salary and fringe benefit costs associated with 5.0 FTE positions. I am requesting the Department of Administration secretary to not allot these funds. I object to the level of staffing approved by the Legislature given that the Elections Commission has been operating effectively with fewer staff. Rather than adding five additional permanent FTE positions, I believe that the commission can more cost effectively manage peak workload periods by hiring limited term employees or contractors, as they did during the 2016 presidential election. Elections and Ethics Commissions
53. Elections and Ethics Commissioner Per Diems
_Hlk493082827These sections establish and fund the statutory per diems of each of the elections and ethics commissioners at $227 per meeting. Under current law, each commissioner receives a per diem equivalent to a reserve judge sitting in circuit court for each day the commissioners were actually and necessarily engaged in performing their duties. In fiscal year 2016-17, this was equivalent to $454 per day. I object to this provision because I believe that a $227 per meeting statutory per diem paid to ethics and elections commissioners is still out-of-line with per diems paid to members of comparable boards and commissions.
I am exercising the digit veto in section 17 in order to decrease the statutory per diem from $227 per meeting to $27 per meeting. Further, I am partially vetoing section 183 by lining out the amounts under s. 20.510 (1) (a) and s. 20.521 (1) (a) and writing in smaller amounts that reduce each appropriation by $9,600 in each year of the biennium. I am requesting the Department of Administration secretary to not allot these funds. With these vetoes, the statutory per diems paid to ethics and elections commissioners will be better aligned with the statutory per diems paid to members of other state boards and commissions. Department of Employee Trust Funds
54. Group Insurance Program Changes and Group Insurance Board Directives
Sections 17n, 39d, 39f, 39g, 39h, 39j, 39k, 707f, 709g, 9114 (1c), 9114 (1t), 9114 (2p), 9114 (2w), 9129 (2w), 9314 (3c), 9314 (3p) and 9314 (4p)
These sections make the following changes to the state group health insurance program and the Group Insurance Board:
Section 9114 (2w) directs the Group Insurance Board to attempt to ensure that state group health insurance costs paid from GPR are reduced by $63,900,000 over the 2017‑19 biennium through a combination of provider negotiation savings, utilization of state group health program reserves, increased use of health plan tiers and health plan design changes, with an emphasis on consumer-driven health care, that do not exceed a 10 percent increase to total employee costs for the lowest tier plans in each of calendar years 2018 and 2019. Premiums, copays, deductibles, coinsurance and out-of-pocket-maximums are subject to the 10 percent limitation.
Section 9114 (1c) directs the Department of Employee Trust Funds to submit a plan and request for related funding to conduct an educational campaign for consumer-driven health plans before and during the annual enrollment period for the state health insurance plan for calendar year 2019 to the Joint Committee on Finance for its approval no later than January 1, 2018. The educational campaign shall provide the following information: (a) the advantages of high-deductible health plans and health savings accounts, (b) examples of individuals or families that may benefit from high-deductible health plans and health savings accounts, and (c) any consumer-driven health plan design changes or initiatives approved by the board. The department cannot conduct the campaign without the approval of the Committee.
