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.
_Hlk49202912647. Cost-Benefit Analysis of Leases
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
_Hlk493082600Section 183 [as it relates to s. 20.510 (1) (a) and (1) (x)]
_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
_Hlk493082808Sections 17 and 183 [as it relates to s. 20.510 (1) (a) and s. 20.521 (1) (a)]
_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.
Section 9114 (1t) requires the Group Insurance Board to submit a report to the Joint Committee on Finance by March 1, 2018, detailing: (a) the amount of state group health program reserves as of December 31, 2017, (b) the amount of state program reserves that will be used during calendar year 2018 to reduce state program costs, (c) a projection of 2018 year-end state program reserves by the board's consulting actuary, and (d) the board's planned utilization of state program reserves during calendar year 2019. The board may not implement the plan if, within 21 working days, the cochairpersons of the Joint Committee on Finance notify the board that a meeting has been scheduled to review the plan.
Section 9114 (2p) requires the Group Insurance Board to use $68,800,000 of the state group health program reserves during the 2017-19 biennium to reduce program costs. The board is also directed to review its policies related to maintaining reserves for fully insured health plans. In conducting the review, the board is required to review: (a) the history of changes in the participation of fully insured health plans in the group health insurance program, (b) the number of members affected by the discontinuation of fully insured health plans from year to year, and (c) the dollar amount of claims or premiums associated with members that are affected by the discontinuation of fully insured health plans from year to year.
Sections 709g and 9314 (3c) establish five, rather than three, health plan tiers in statute.
Sections 707f and 9314 (3p) require the Group Insurance Board, in consultation with the Division of Personnel Management within the Department of Administration, to submit any proposed changes to the state group health insurance program in the following program year to the Joint Committee on Finance by April 1 of each year under a passive review approval process. Proposed changes for calendar year 2018 that would have a financial impact or affect covered benefits are also subject to the passive review requirement. If the Committee notifies the board within 21 working days that a meeting has been scheduled for the purpose of reviewing the changes, the changes may not be implemented unless approved by the Committee.
Section 9129 (2w) requests the Joint Legislative Audit Committee to direct the Legislative Audit Bureau to conduct a financial and performance audit of the state group health insurance programs, including a review of the Group Insurance Board's compliance with the state group health reserves policy, a review of the appropriateness of its policy regarding fully-insured program reserves and the circumstances that have created ongoing, frequent accumulation and use of reserves.
Sections 17n, 39d, 39f, 39g, 39h, 39j, 39k and 9314 (4p) require that the six members of the Group Insurance Board who are appointed by the Governor to two-year terms under current law be appointed with the advice and consent of the Senate. In addition, this provision would expand the board from 11 members to 15 members and specify the following new members: (a) one member appointed by the Speaker of the Assembly, (b) one member appointed by the Minority Leader of the Assembly, (c) one member appointed by the Majority Leader of the Senate, and (d) one member appointed by the Minority Leader of the Senate.
I am vetoing all of these sections in their entirety because I object to having the Legislature interfere with the responsibilities of the Group Insurance Board, which has set policy and overseen administration of the group health insurance plan for state and local employees, retirees and employers since 1959. The Legislature’s role is to approve the compensation plan and set overall funding for the state group health insurance program. In addition, last session, the Legislature passed, and I signed, 2015 Wisconsin Act 119, which established new authority for the Joint Committee on Finance to approve or reject contracts to provide self-insured group health plans to state employees. Thus, I believe that current law already provides a sufficient and appropriate oversight role for the Legislature. I do not believe that they should micromanage plan design, contract negotiations and the financial and programmatic management of the program. The provisions to be vetoed ensure that the Joint Committee on Finance have complete control over any change, no matter how small, to the program. This degree of oversight will not be workable, especially for a Committee that does not meet on a regular basis.
_Hlk491256470Furthermore, some of these provisions are unnecessary and administratively burdensome. For example, the board has already approved the participating health plans and rates for the calendar year 2018 group health insurance program and is committed to achieving the biennial savings target established by the Legislature. Any changes to the 2018 program made by the Joint Committee on Finance would require problematic contract amendments. Submitting any future changes to the plan design to the Committee for approval will also be problematic and may encourage additional lobbying of the Legislature by providers and employees. In addition, statutorily increasing the number of health plan tiers from three to five does not make sense for counties where fewer than five plans are even offered. Furthermore, statutorily requiring reports and an audit by the Legislative Audit Bureau of the program reserves are unnecessary as the Group Insurance Board is already in the process of updating its reserve policies as part of its normal process.
Finally, direct involvement of legislators in the policy-setting and administration of the group health program could politicize a process that has worked effectively under Group Insurance Board oversight for the past 58 years. While the Legislature has a substantial role in setting statutory policy and establishing overall funding levels, the members of the board must develop significant expertise in health plan design and administration, while balancing the needs of the employers, employees and health plans. This is best achieved with the current composition of the board.
Legislature
55. 100th Anniversary of the State Capitol
_Hlk492991977Sections 8p, 183 [as it relates to s. 20.765 (4) (title), (b), (h) and s. 20.855 (3) (k)], 480b, 480c, 480cg and 483m
This provision creates an annual GPR appropriation for activities related to the celebration of the 100th anniversary of the State Capitol and appropriates $50,000 GPR in fiscal year 2017-18. Payments from the appropriation must be authorized by the cochairpersons of the Joint Committee on Legislative Organization. It also creates a PR continuing appropriation to receive revenues generated from activities related to the celebration. The first $50,000 of these funds received in each fiscal year lapses to the general fund. Any amounts above $50,000 are transferred to a new PR biennial appropriation for capitol restoration and relocation planning.
_Hlk492389581I am vetoing this provision in its entirety because the State Capitol and Executive Residence Board has already authorized the use of funds from the capitol restoration fund for this purpose.
56. State Capitol Basement Renovations
Section 9104 (1) (a)
This provision enumerates $1 million GPR-supported borrowing for the purpose of renovations of the State Capitol basement.
I am vetoing this provision to delete the enumeration for the State Capitol basement renovation. I believe that the State Capitol and Executive Residence Board should study the proposal and determine if renovations to the basement are the best use of funds or if renovations to other parts of the State Capitol would be a more beneficial investment.
_Hlk492648155Public Service Commission
_Hlk49264818357. Provision of Utility Services Effective Date
Section 9437 (1t)
Section 1691c amends the definition of "public utility" to exclude, among other entities, a state agency, as defined in s. 20.001 (1) of the statutes, that may own, operate, manage or control all or any part of a plant or equipment for the production, transmission, delivery or furnishing of water either directly or indirectly for the public. Section 9437 (1t) provides an effective date for this change on the first day of the 13th month after the effective date of the budget bill.
In addition, for the purposes of awarding federal Community Development Block Grant funding in the 2017-19 biennium, section 9101 (10t) directs the Department of Administration to give priority to a project meeting all of the following: (a) the project would plan for or establish public or private facilities for the provision of water and sewer services primarily to residential users; (b) the new water service would replace services currently provided by an entity other than a public utility, a community water system, a cooperative association, or private groundwater wells; and (c) the new sewer service would replace services currently provided by an entity other than a public utility, private on-site wastewater treatment systems, or any other on-site forms of sewage disposal.
These provisions were added to allow the Department of Health Services’ Winnebago Mental Health Institute to discontinue providing water and sewer services to residents located near the facility without negatively impacting these individuals.
I am vetoing section 9437 (1t) to remove the effective date of the first day of the 13th month beginning after the effective date of the bill because I believe that the change to clarify that the department is not a public utility should be made immediately. I am, however, directing the department to continue to provide water and sewer services to these residents for 12 months after the effective date of the budget.
D. Health Services and Insurance
Department of Health Services
58. Supervised Release of Sexually Violent Persons
Sections 377h, 979p, 2230s, 2251y, 2257e, 2257f, 2257g, 2257h, 2257i, 2257j, 2257k, 2257L, 2257m, 2257n, 2257o, 2257p, 2261d, 2262L, 2262m, 2262n, 2262o, 2262p, 2262q, 2262r, 2262s, 2262t, 2262u, 2262v, 2262w, 2262x, 9120 (1t) and 9320 (1t)
These provisions make a series of changes to the supervised release of sexually violent persons and representation of sexually violent persons by the State Public Defender. The changes apply to all petitions for supervised release under Chapter 980 currently pending at the time of the effective date of the bill. The following details those changes.
Require the county of residence of the sexually violent person, as determined by the Department of Health Services, to create a temporary committee in order to prepare a report identifying an appropriate residential option in that county and demonstrate that the county has contacted the landlord and that the landlord has committed to enter the lease. The committee will consist of: (a) the county human services department, (b) a representative from the department, (c) a local probation or parole officer, (d) the county corporation counsel or his or her designee, and (e) a representative of the department of the county that is responsible for land conservation.
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