Dale Cattanach
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
May 10, 1995
To the Honorable, the Legislature:
We have completed an evaluation of the State's debt collection efforts, as requested by the Joint Legislative Audit Committee. As of June 30, 1994, state agencies reported nearly $1.8 billion in delinquent debt. Four areas - delinquent income, sales, and employe withholding taxes; delinquent child support obligations and social service programs overpayments; unpaid unemployment compensation taxes and overpaid unemployment compensation benefits; and defaulted student higher education loans and other student debt - make up 98 percent of the State's delinquent debt.
Even though agencies reported $1.8 billion in delinquent debt, this amount can only be considered an estimate, partly because the Department of Revenue purposely over - estimates some delinquent tax bills in order to encourage prompt response. In addition, information on welfare - related debt that counties provide to the State is inaccurate.
Much of the $1.8 billion in reported debt cannot be expected to be collected. Collectibility declines as debt ages, and we estimate that 83 percent of the debt is at least one year old. Many debtors are bankrupt or do not have the means to satisfy their obligations, and other debtors cannot be located. Further, not all of the reported amount can be expected to be made available for general appropriation or returned to the respective programs for re-use. For example, a portion of the largest single area of delinquent debt - child support - is required to be returned to custodial parents.
Nevertheless, if even 1 percent of the State's reported delinquent debt were collected, revenues to the State and others would increase by $18 million, and we found several improvements in current practices that could be made to increase collections. These include more effective use of technology; more aggressive use of existing collection techniques such as state income tax refund intercepts, which can be applied at relatively low cost; increased inter-governmental cooperation; and increased use of private collection firms.
We appreciate the courtesy and cooperation extended to us by the many state agencies that we contacted during the course of this audit. A response from the departments of Revenue; Health and Social Services; and Industry, Labor and Human Relations and from the Higher Educational Aids Board is Appendix II. A response from the University of Wisconsin System is Appendix III.
Sincerely,
dale cattanach
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
May 17, 1995
To the Honorable, the Assembly:
We have completed an audit of the Unemployment Reserve Fund, Department of Industry, Labor and Human Relations for fiscal year 1993 and 1994.
Our audit included tests to ensure that the financial statements of the Unemployment Reserve Fund for fiscal years 1993 and 1994 were fairly presented in conformity with generally accepted accounting principles.
The audit report includes no major findings, conclusions, or recommendations and, in our judgement, is not likely to be of interest to most members of the Legislature.
Copies of the audit report have been distributed to members of the Joint Audit Committee and those required by law to receive copies. If you are interested in receiving a copy of this report, please contact our office and request report number 95-12.
Sincerely,
Dale Cattanach
State Auditor
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Representative Schneider addressed the members from the rostrum to read a passage relating to D-Day, the WWII Allied invasion of Europe, and to adjourn in honor of the 51st anniversary of this day on June 6, 1944.
Representative Prosser asked unanimous consent that the rules be suspended and that Assembly Bill
402 be withdrawn from the calendar of Thursday, June 1 and taken up at this time. Granted.
Assembly Bill
402
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Relating to: state finances and appropriations for the department of transportation; creating an oil company franchise fee; taxation of motor vehicle fuel that is not sold for use on highways; motor vehicle fuel and alternate fuel taxes and qualified motor vehicles; authorizing construction of additional major highway projects; creating a seasonal highway rehabilitation program; environmental clean-up activities on lands acquired by the department of transportation; vehicle weight and width limit exceptions on a part of the national system of interstate and defense highways; numerous changes to the classified driver license system and commercial motor vehicle operation; eligibility for an occupational license; the driving skills test required of applicants for operators' licenses; demerit point reduction for completion of a rider course relating to Type 1 motorcycle operation; vehicle accidents resulting in property damage; performance of motor vehicle registration and titling functions by motor vehicle dealers; the fee for issuance or reissuance of special distinguishing motor vehicle registration plates; permitting the department of transportation to make, record and use digitized images of applicants for operators' licenses and identification cards; local transportation aids; the funding of the urban mass transit operating assistance program; reimbursement for town road improvements under the local roads improvement program; authorizing the department of transportation to conduct projects under the surface transportation discretionary grants program; the employment transit assistance program; the registration period and fees applicable to aircraft; the obligation of a condemnor to make available a comparable replacement business to a person displaced from a business as a result of condemnation; delaying the expiration date of the disadvantaged business demonstration and training program; exempting railroad property acquired by the department of transportation from the tax-exempt property reporting requirement; granting bonding authority; providing an exemption from emergency rule procedures; granting rule-making authority; making appropriations; and providing penalties.
Representative Prosser moved that Assembly Bill 402 be rereferred to the Joint Committee on Finance.
The question was: Shall Assembly Bill 402 be rereferred to the Joint Committee on Finance?
The roll was taken.
The result follows:
Ayes - Representatives Ainsworth, Albers, Baldus, Baldwin, Baumgart, Bell, Black, Bock, Boyle, Brancel, Brandemuehl, Carpenter, Coggs, Coleman, Cullen, Dobyns, Dueholm, Duff, Foti, Freese, Gard, Goetsch, Green, Grobschmidt, Gronemus, Grothman, Gunderson, Hahn, Handrick, Hanson, Harsdorf, Hasenohrl, Hoven, Huber, Hubler, Huebsch, Hutchison, Jensen, Johnsrud, Kaufert, Kelso, Klusman, Kreibich, Kreuser, Krug, Krusick, Kunicki, La Fave, Ladwig, F. Lasee, Lazich, Lehman, Linton, Lorge, Morris-Tatum, Murat, Musser, Nass, Notestein, Olsen, Ott, Otte, Ourada, Owens, Plache, Plombon, Porter, R. Potter, Powers, Reynolds, Riley, Robson, Rutkowski, Ryba, Schneider, Schneiders, Seratti, Silbaugh, Skindrud, Springer, Travis, Turner, Underheim, Urban, Vander Loop, Vrakas, Walker, Ward, Wasserman, Wilder, Williams, Wirch, Wood, L. Young, R. Young, Ziegelbauer, Zukowski and Speaker Prosser - 98.
Noes - None.
Absent or not voting - Representative Meyer - 1.
Motion carried.
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Representatives Schneider and Schneiders, Assembly Chief Clerk Charles R. Sanders and Senate Chief Clerk Donald J. Schneider addressed the members from the rostrum regarding the National Conference of State Legislatures (NCSL) annual meeting in Milwaukee next month.
Representative R. Young asked unanimous consent that the Assembly adjourn in honor of the 75th Anniversary of the ratification of the
19th Amendment to the U.S. Constitution (Women's Suffrage). The Wisconsin Legislature completed its action on the amendment on June 10, 1919, being one of the first three states to begin the ratification process on that day along with Illinois and Michigan. Granted.
Representative Wasserman asked unanimous consent that the Assembly adjourn in honor of the birth of his son, born on Sunday, June 4. Granted.
Representative Schneider asked unanimous consent that the Assembly adjourn in honor of the 51st Anniversary of D-Day on June 6, 1944. Granted.
Representative Krusick asked unanimous consent that the Assembly adjourn in honor of the birth of Michael Allan Young to good friends, Susan and Allen Young. Granted.
Representative Krusick asked unanimous consent that the Assembly adjourn in honor of the birth of Courtney Michael to Susan Robert and Michelle Mroczenski. Granted.
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VISITORS
During today's session, the following visitors honored the Assembly by their presence and were welcomed by the presiding officer and the members:
Gail Ward, Donna Tjader and Band Director Bryn Riley, from Siren, guests of Representative Dueholm.
Jim Shilling from Sparta, guest of Representative Musser.
Carol Nelson from Whitehall, guest of Representative Gronemus.
Kris Crowe, Mike Barrett, Roger Skifstod, Judy Dekan and Pat Gilmore from Augusta, and Bill Hurer from Spencer, guests of Representative Zukowski.
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Representative Jensen moved that the Assembly stand adjourned until 9:00 A.M. on Thursday, June 8.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
2:30 P.M.
