Section
25.17 (14r) of the Statutes requires that the State of Wisconsin Investment Board (SWIB) submit a report to the Joint Committee on Audit, Joint Committee on Finance, and Chief Clerks of each House summarizing any change in the board's investment policies, upon adoption of the change.
On April 2, 1997, the Board approved the attached modifications to the Investment Policy Guidelines for certificates of deposit (CDs) purchased by the State Investment Fund (SIF) from Wisconsin banks and thrifts. Additions to the previous guidelines are shaded and deletions are stricken material. The guidelines for the "Wisconsin Bank Program" have been replaced by the guidelines entitled "Wisconsin Certificate of Deposit Program".
l The new guidelines simplify the process for judging the credit quality of banks and thrifts who want to participate in the CD program. Eligibility is now based upon whether the bank/thrift qualifies for "pass-through" insurance by the Federal Deposit Insurance Corporation (FDIC). That determination is made by the FDIC according to whether the bank/thrift is "well capitalized " or "adequately capitalized". this change enables each public depositor and retirement fund participant to have FDIC coverage for up to $100,000. Combined with the State's guarantee fund, this would make available to each public depositor up to $500,000 of insurance coverage.
The new process enables SWIB to eliminate a bank/thrift evaluation program that was being provided by an outside vendor. As a result, there will be an annual cost savings of $4,000.
l The maximum exposure which SIF may have to any bank or thrift has been reduced from the lesser of $25 million or 3% of assets to the lesser of $10 million or 3% of assets. This change was made to ensure that larger banks would not dominate the program.
l Under the previous guidelines, the maximum maturity for a CD purchased by SIF was three years. Under the new guidelines, the amount of exposure which SIF may have to CDs with maturities of up to three years is also limited to address concerns about control over duration of the overall SIF portfolio.
l The $100,000 minimum size requirement for CDs purchased by SIF has been eliminated. We anticipate that the new minimum size will be $25,000 as part of a plan to use an outside vendor in administering the CD program. The authority for the Investment Director to use third-party vendors is explicitly stated in the Guidelines. We continue to have discussions about ways that third-party vendors could play a role that would make the program more attractive to banks and thrifts without impairing our ability to earn a competitive rate of return.
These changes will simplify and improve the program. Please contact me if you have any questions.
Sincerely,
Patricia Lipton
Executive Director
State of Wisconsin
Legislative Audit Bureau
April 22, 1997
The Honorable, The Legislature:
We have completed an evaluation of the Milwaukee Metropolitan Sewerage District, as directed by the Joint Legislative Audit Committee. The District, whose 1996 operating expenditures totaled $118.8 million, recently completed work on the $2.3 billion Water Pollution Abatement Program, which is the largest public works project in the State's history to date.
Since 1992, the District has maintained a monthly capital fund balance that has averaged $114 million more than required to meet its cash requirements. We found that this excess balance is primarily the result of two factors: the District's decision to take advantage of favorable interest rates by issuing more bonds than it needed to pay for current construction costs, which appears to have minimized long-term taxpayer costs, and the receipt of more grant revenue than had been projected.
The production of Milorganite, a fertilizer made from heat-dried sludge, is currently the least-costly method available to the District for waste disposal, in part because its sale generates revenue. To ensure that Milorganite production remains a cost-effective disposal option, the District may need to enhance its marketing efforts to address increased competition from other municipalities. Plant modifications made after a February 1996 explosion appear to have addressed safety concerns.
The District also administers the Minority Business Development and Training Program, created by the Legislature in 1985 to develop the capabilities of minority individuals and businesses to participate in construction and construction-related projects. Through 1996, the program has spent $21.0 million, of which only $2.8 million, or 11 percent, was for participant training services, while almost as much, $2.3 million, was spent for program management. In addition, per capita training costs for participating individuals and firms have been excessive.
Although the District has made some modifications to enhance its contract purchasing and oversight since our prior review in 1991, additional improvements are needed if the District is to be effective in evaluating the performance of its consulting engineers and contractors.
We appreciate the courtesy and cooperation extended to us by the Milwaukee Metropolitan Sewerage District. A response from the District is the Appendix.
Sincerely,
Dale Cattanach
State Auditor
State of Wisconsin
The University of Wisconsin System
April 14, 1997
The Honorable, The Legislature:
At its meeting April 11, 1997, the Board of Regents accepted the attached report for submission to the chief clerk of each house of the legislature for distribution to the appropriate standing committee under s.
13.172 (3).
Section
36.11 (22) (b), Wis. Stats., requires the Board of Regents to submit a report to the chief clerk of each house of the Legislature annually on the methods each UW System institution used to disseminate information to students on sexual assault and sexual harassment.
S139
The law requires UW System institutions to incorporate into their orientation programs for newly entering students oral and written information on sexual assault and sexual harassment, including information on: 1) sexual assault by acquaintances of the victims; 2) the legal definitions and penalties for sexual assault; 3) generally available national, state, and campus statistics on sexual assault; 4) the rights of victims; and 5) protective behaviors including methods of recognizing and avoiding sexual assault and sexual harassment. In addition, each institution must annually supply to all students enrolled in the institution printed material that includes information on all of these topics.
This law was enacted in April 1990 and this is the sixth report to be compiled for the Legislature since its enactment.
If you need additional information regarding this report, please contact Mark A. Schemmel at 262-5504.
Sincerely,
KAtharine C. Lyall
President
Referred to committee on Education.
State of Wisconsin
The University of Wisconsin System
April 14, 1997
The Honorable, The Legislature:
At its meeting April 11, 1997, the Board of Regents accepted the attached report for submission to the chief clerk of each house of the legislature for distribution to the appropriate standing committee under s.
13.172 (3).
Section
36.25 (14m)(c), Wis. Stats., requires the Board of Regents to submit a report to the governor and to the chief clerk of each house of the Legislature annually by April 15 on its precollege, recruitment, and retention plan for minority and disadvantaged students. The report must also include information on financial aid programs serving those students. the report for 1995-96 is attached.
If you need additional information regarding this report, please contact Andrea-Teresa Arenas at 262-8636.
Sincerely,
KAtharine C. Lyall
President
Referred to committee on Education.
__________________
Relating to the certification of private bar attorneys.
Submitted by State Public Defender.
Report received from Agency, April 18, 1997.
Referred to committee on Judiciary, Campaign Finance Reform and Consumer Affairs, April 23, 1997
.
Relating to the assignment of trial division cases to the private bar.
Submitted by State Public Defender.
Report received from Agency, April 18, 1997.
Referred to committee on Judiciary, Campaign Finance Reform and Consumer Affairs, April 23, 1997
.
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The committee on Economic Development, Housing and Government Operations reports and recommends:
Relating to the annual allocation of volume cap.
No action taken.
Gwendolynne Moore
Chairperson
The committee on Health, Human Services, Aging, Corrections, Veterans and Military Affairs reports and recommends:
Relating to immunization of students.
No action taken.
Relating to time-limited benefits for aid to families with dependent children (AFDC) recipients.
No action taken.
Rodney Moen
Chairperson
The committee on Labor, Transportation and Financial Institutions reports and recommends:
Relating to the minimum wage.
Report objection in part
.
Ayes, 6 - Senators Plache, C. Potter, Moore, Decker, Zien and Darling.
Noes, 1 - Senator Farrow.
Kimberly Plache
Chairperson
Referred to joint committee for review of Administrative Rules, April 21, 1997
.
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Senate amendment 1 to Senate Bill 167 offered by Senator Wineke.
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