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 the Chief Clerks of each House summarizing any change in the Board's investment policies, upon adoption of the change.
On January 6, 1999 the Board approved modifications to the Investment Policy Guidelines that create a new Real Estate Mortgage portfolio for the Wisconsin Retirement System's (WRS) Fixed Trust Fund. The additional guidelines are attached.
Real Estate Mortgage Program
To take advantage of prevailing market conditions in the early 1990's, SWIB made the decision to emphasize equity investments in real estate, as opposed to debt. Since then, SWIB's involvement in the real estate market has been through equity investments in real estate properties. Due to the attractiveness of real estate debt opportunities in the present marketplace, the Board's recent action reestablishes a Real Estate Mortgage Participation program with Northwestern Mutual Life (NML) as SWIB's partner and origination agent. The program will initially be funded with an allocation of $500 million.
Under this fixed income program, SWIB will participate in various real estate loans underwritten and originated by NML. NML's extensive and experienced staff will identify potential loans as well as perform primary due-diligence on projects for the portfolio. Each loan will be individually reviewed by SWIB real estate staff from a fundamental investment perspective and then reviewed by SWIB private placements staff for issues relating to pricing.
This program provides an attractive way to partner with a large and recognized Wisconsin firm (NML) and to participate in transactions that would otherwise be too small for origination and servicing with the resources we have available.
Please contact me if you have any questions about this report.
Sincerely,
Patricia Lipton
Executive Director
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State of Wisconsin
Department of Administration
Madison
February 12, 1999
To the Honorable, the Legislature:
This report is transmitted as required by sec. 20.002(11)(f) of the Wisconsin Statutes, (for distribution to the appropriate standing committees under sec. 13.172(3) Stats.), and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative balances during the month of January 1999.
On January 1, 1999 the Wisconsin Health Education Loan Repayment Fund balance was -$6 thousand. This shortfall continued until January 7, 1999 when the balance reached $17 thousand. This shortfall was due to the timing of revenues.
On January 1, 1999 the Wisconsin Environmental Fund balance was -$799 thousand. This shortfall increased to -$1.52 million on January 15, 1999 and continued until January 25, 1999 when the balance reached $6.59 million. This shortfall was due to the timing of revenues.
On January 20, 1999 the Wisconsin Petroleum Inspection Fund balance was -$1.72 million. This shortfall continued until January 21, 1999 when the balance reached $7.15 million. This shortfall was due to the timing of revenues.
On January 25, 1999 the Common School Income Fund balance was -$912 thousand. This shortfall continued into the month of February 1999. This shortfall was due to the timing of revenues.
The Wisconsin Health Education Loan Repayment Fund, Wisconsin Environmental Fund, Wisconsin Petroleum Inspection Fund, and Common School Income Fund shortfalls were not in excess of the statutory interfund borrowing limitation and did not exceed the balances of the Funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority.
Sincerely,
Mark D. Bugher
Secretary, DOA
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State of Wisconsin
Department of Corrections
Madison
February 17, 1999
To the Honorable, the Legislature:
As required under Section
301.03 (6r) of the Wisconsin Statutes, I am submitting information relative to the number of prisoners of the Department of Corrections consider violent and the total number of prisoners.
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On December 31, 1998 the Department had 17,837 adult inmates assigned to Type "1" prisons in state and in contract facilities out of state. Out of the 17,837 inmates, 11,557 or 64.7% percent had assaultive offenses.
Sincerely,
Jon E. Litscher
Secretary, DOC
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Southeast Wisconsin
Professional Baseball Park District
Milwaukee
February 18, 1999
To the Honorable, the Legislature:
Enclosed please find your copy of the January 1999 Miller Park Monthly Progress Report. If you have any questions or comments on this month's report, please feel free to contact me.
Thank you in advance for your consideration and input on the Miller Park project.
Sincerely,
Michael R. Duckett, P.E., R.l.s.
Executive Director
