The Department of Corrections, prior to the end of each odd-numbered year, to estimate unexpended revenues, less encumbrances, that will remain in the juvenile correctional services appropriation on June 30 of that year. If the estimated balance is projected to be negative, the Department of Administration must include the amount of the estimated deficit in the cost basis for the calculation of the proposed secured correctional facilities daily rates for the subsequent biennium.
The Department of Administration to include 50 percent of any projected deficit in the cost basis for the calculation of daily rates for each year of the subsequent biennium, and the Department of Administration secretary to reserve, for the purpose of retiring the deficit, the share of the daily rate revenue that is proportionate to the share of the increased cost basis associated with the estimated deficit. Any revenue reserved for this purpose that exceeds the amount of the deficit must be reimbursed to the counties and the state in a manner proportionate to the total number of days of juvenile placements at the facilities for each county and the state.
I am vetoing sections 295h and 2210m and partially vetoing sections 295g and 9409 (1x) as these sections relate to future juvenile correctional services deficits to maintain the department's flexibility to effectively manage juvenile programs. These provisions would place an undue burden on counties by requiring the Department of Corrections to charge counties to recover deficits in the appropriation.
10.
Youth Diversion Program in Ward 3 in the City of Racine
Section 88p
This provision directs the Department of Corrections to allocate $100,000 in fiscal years 2005-06 and 2006-07, funded from penalty assessment receipts administered by the Department of Justice for the purposes of entering into a contract with an organization in Ward 3 in the city of Racine to provide services in Racine County to divert youths from gang activities.
I am partially vetoing this provision because I object to limiting the receipt of funding to a single ward in an individual city. Instead, these funds should be accessible to organizations across the state that have identified youth diversion as a priority. The goals of youth diversion are important to Wisconsin, and my veto retains the additional $100,000 for these purposes.
Justice
11.
County Law Enforcement Services Grant
This section authorizes $1,000,000 in PR-S funds for the county law enforcement services grant administered by the Department of Justice. This program is one of three that provides grants for law enforcement to counties and tribes. The county law enforcement services grant is available to any county that borders one or more federally recognized Indian reservations and has not established a cooperative county-tribal law enforcement plan under the separate Department of Justice grant program.
A412
I am partially vetoing section 140 [as it relates to s.
20.455 (2) (kq)] because I object to the excessive increase in funding for this program over current levels. By lining out the department's appropriation under s.
20.455 (2) (kq) and writing in a smaller amount that deletes $450,000 PR-S in each fiscal year, I am maintaining current funding levels for the program in addition to funding a new earmark of $300,000 for Forest County. I am also requesting the Department of Administration secretary not to allot these funds.
12.
Drug Law Enforcement and Crime Laboratories Appropriations Lapse
Section 9229 (2k)
This provision requires all unencumbered balances exceeding $175,000 in the appropriations related to drug law enforcement and crime laboratories be lapsed to the general fund for fiscal years 2005-06 and 2006-07.
I am partially vetoing this provision because I object to the unjustified retention of $175,000 in each fiscal year in the related appropriations. My veto lapses all unencumbered balances at the end of fiscal years 2005-06 and 2006-07 and contributes additional money to the general fund.
OFFICE OF JUSTICE ASSISTANCE
13.
Interagency and Intra-Agency Aids Appropriation
Section 415x
This section repeals the interagency and intra-agency aids appropriation of the Office of Justice Assistance. This appropriation is authorized to receive money from other appropriation accounts of the Department of Administration and from other state agencies and to use those monies for aids to individuals or organizations.
I am vetoing this section because I object to this infringement on executive branch authority to manage programs. The Office of Justice Assistance's mission is to provide
financial resources to state agencies, local governments and private nonprofit organizations that are committed to improving Wisconsin's justice system. This is a necessary tool for the Office of Justice Assistance to achieve maximum effectiveness of this stated goal.
E.
STATE GOVERNMENT OPERATIONS
Budget Management
1.
Lapse to General Fund
Sections 9255 (1) (title) and 9255 (1) (a)
This nonstatutory provision directs the Department of Administration secretary to lapse certain dollar amounts from specific agency appropriations to the general fund.
In light of other vetoes, this provision is not broad enough to fully lapse all required funds from the agencies. I am, therefore, partially vetoing this provision to increase the total lapse amount to $71,234,800 over the biennium. This revised lapse amount will allow the Department of Administration secretary to lapse not just the original program revenue lapses ($34,125,500) in the provision, but also to capture the lapse related to the elimination of attorney positions ($724,900), the savings related to my Accountability, Consolidation and Efficiency (ACE) initiative ($35,500,000), and the lapse related to land information aids ($884,400).
Lapses related to the ACE initiative will be identified as that initiative is implemented over the course of the 2005-07 biennium. Similarly, the vacant attorney positions will not be eliminated until June 30, 2007, and, consequently, lapse amounts cannot be immediately assessed to agencies. Further guidance to agencies will be provided in the upcoming months that will help them plan for these lapses.
A413
Consistent with the program revenue lapse amounts in this provision, I am directing the Department of Administration secretary to lapse the following amounts per agency per year:
A414
2.
Transfer from the Joint Committee on Finance Appropriation
Sections 9155 (4) (c) and 9155 (5dv)
These nonstatutory provisions allow agencies to request the Joint Committee on Finance to restore, under the s.
13.10 process, approximately $96 million of the $100 million GPR eliminated as a result of the Senate's 2.3 percent across-the-board state operations reduction and clarify the implementation of lapses and transfers to the general fund related to unfunded liabilities under the Wisconsin Retirement System.
State agencies have already taken significant operating budget reductions in this budget and in past budgets. Further across-the-board reductions are problematic for a variety of reasons, including an untenable and highly questionable cut of over $150,000 per year to the operations of the Department of Military Affairs. I object wholeheartedly to this reduction in support for National Guard operations as Wisconsin service men and women are defending freedom abroad. Examples like this are no doubt why the Senate moved the money and the responsibility to determine the exact cuts to the Joint Committee on Finance in a middle-of-the-night amendment.
I am partially vetoing these sections to authorize the Department of Administration secretary to transfer funds from the Joint Committee on Finance appropriation back to the agencies in amounts not to exceed those listed in this section. The secretary will notify agencies formally when these transfers will occur and regarding the procedures to be followed. These restored funds will be reflected in the budget bases of the affected agencies for purposes of the 2007-09 biennial budget process.
Finally, to assist state agencies in managing their budgets, I am directing the Department of Administration secretary to apportion, as quickly as possible, the remaining $4 million reduction in a manner that minimizes the impact on critical services to Wisconsin citizens.
3.
Limit on Expenditure of General Fund Revenues
Sections 10m, 15m, 17m, 65m, 66m, 68a, 68g, 68i, 68j, 81p, 85, 87d [as it relates to s.
16.896 (3)], 126e, 126m, 137m, 140 [as it relates to s.
20.875 (title) and
(2) (q)], 482m, 482n, 482p, 482r, 520m, 536 and 9255 (2)
These sections establish an additional limit on general fund expenditures beginning in fiscal year 2007-08; change the name of the budget stabilization fund to the taxpayer protection fund; specify that excess general fund revenues be deposited in the taxpayer protection fund; require a recommendation from the Governor and a three-fourths vote of each house of the Legislature to appropriate money from the fund; specify that balances in the fund above ten percent of the amount budgeted for expenditure in that fiscal year must be returned to the taxpayers through reduction in state income taxes; and, finally, direct net proceeds in excess of $36 million from the sale of state-owned properties be deposited in the renamed budget stabilization fund.
I am vetoing sections 15m, 68i and 68j in their entirety and partially vetoing section 536 because the provisions are redundant and unnecessary given current law.
In addition, I object to the treatment of the budget stabilization fund, which was created to help cushion the impact of an economic downturn. The concern that balances will build up in excess of ten percent of the amount budgeted for expenditure seems unwarranted given past experience. I am also vetoing the name change of the budget stabilization fund in these sections. This change accomplishes nothing and is not warranted. As a result, the language directing net proceeds in excess of $36 million from the sale of state-owned properties is eliminated. As discussed in the asset sales portion of the Health and Family Services and Insurance Section, Health and Family Services, Item #2 veto, my Administration is committed to managing state real estate cost-effectively and selling assets as warranted to improve the state's financial condition and fund our higher priorities of education, health care and economic development.
Members of the Assembly have publicly urged me to veto these provisions which were included in a late-night amendment simply so the Senate could pass the budget. This veto obliges their request.
ADMINISTRATION
4.
Asset Sales Reporting Dates
Sections 9101 (4) (a) 1. and 9101 (4) (b)
These provisions direct the Department of Administration secretary to review all holdings of state-owned real property for potential sale no later than July 1, 2006, and to submit a report to the Building Commission no later than October 1, 2006, containing an inventory of specific properties to be sold.
I am partially vetoing these provisions to remove the exact dates for the initial review and the report to the Building Commission. Having specific dates in the budget bill is not necessary. Staff at the department are already reviewing state-owned real properties and assessing which properties are appropriate for disposition based on performing the business functions of the state in the most cost-effective manner. As each determination is made, the recommendation and supporting analysis will be forwarded to the Building Commission for its review and approval.
5.
Vacant Attorney Positions
Section 9155 (1w)
This provision directs the Department of Administration secretary to eliminate 13.0 FTE executive branch attorney positions, excluding attorney positions at the University of Wisconsin System, State Investment Board and Department of Employee Trust Funds, that become vacant before June 30, 2007.
A415
I am partially vetoing this provision to remove the exemption for the University of Wisconsin System, thereby increasing the number of attorney positions available to meet the requirements of this provision. The attorney consolidation initiative I proposed would have resulted in the need for 13.0 FTE fewer attorney positions through more efficient deployment of legal resources and a streamlined management structure. While the Legislature mandated the same reduction of attorney positions, it blocked the accompanying efficiency and management improvements that made the reductions possible. Consequently, finding efficiencies in legal services will now be more difficult and expansion of the pool of positions is necessary.
6.
Sale of State-Owned Heating, Cooling and Wastewater Treatment Facilities
Sections 16m, 16n, 83m, 85g, 85r, 87d, 87h, 87k, 87L, 163m, 167m, 172m, 193m, 286m, 288m, 364c, 384t, 413m, 795f, 9101 (10v) and 9455 (3w)
These sections require the Department of Administration to sell or contract with a private entity to operate each state-owned heating, cooling and wastewater treatment facility. The net proceeds of the sales are to be deposited into the budget stabilization fund. In addition, 270.92 FTE positions in six state agencies are eliminated as of April 2007.
I am vetoing these sections because the requirement to sell or contract for the operation of every such facility regardless of the individual circumstances, feasibilities and benefit-cost economics is not a good business approach.
As a result of this veto, the facilities will remain operational. While I cannot restore the 270.92 FTE positions eliminated by the Legislature, I am asking the Department of Administration secretary to pursue the restoration of these positions through procedures authorized under current law to ensure continuity of basic services.
7.
Limitations on Resale of Telecommunications Services by State Agencies
Sections 94m and 695q
These sections specify that a state agency may use telecommunications services that it procures only for the agency's own purposes to fulfill its mission and that it may not offer, resell or provide services that are available from a private telecommunications carrier to the general public or private entities. An exception to this restriction is made if there is a consortium agreement in effect as of June 1, 2005, to provide services to member organizations.
I am partially vetoing these sections to remove the exception granted in the budget for an existing consortium in order to preserve the ability to maximize efficiency. The economies of scale needed to support the least costly and most effective telecommunications on a statewide enterprise level require a consolidated and coordinated approach. This capability is not served by exceptions for consortium agreements.
8.
Video Gaming Devices and Pari-Mutuel Race Track Licensing
Sections 1430m, 1430o, 2422b, 2422c, 2422d, 2422e, 2422f, 2422g, 2422h, 2422i, 2422j, 2422L, 2422m, 2422n, 2422o, 2422om, 2422p, 2422q, 2422r, 2422s, 2422t, 2422tm, 2422u, 2422um, 2422v, 2422vm, 2422w, 2422wm, 2422x, 2422xm, 2422y, 2423c, 2423d, 2423e, 2423f, 2423g, 2423gm, 2423h, 2423i, 2423j, 2423k, 2423L, 2423m, 2423n, 2423o, 9101 (9r) and 9401 (2q)
These provisions modify the current law use of video gaming machines, as they relate to simulcast wagering. Specifically, these provisions authorize a license for the sponsorship and management of video gaming devices which display a facsimile of a dog or horse race that has been previously conducted at another racetrack. They also permanently repeal the current law simulcast racing and intertrack wagering restriction that requires, effective January 1, 2007, that wagering on simulcast races must be conducted at a racetrack only as an adjunct to, and not in place of wagering on live on-track racing.
Additionally, these provisions prohibit the Department of Administration from imposing any fee on a Wisconsin licensee for receiving simulcast races from out-of-state racetracks or simulcasting races to an out-of-state legal wagering entity.
Further, these provisions create a single license category for: (a) the ownership and operation of a racetrack at which pari-mutuel wagering is conducted; and (b) the sponsorship and management of any race on which pari-mutuel wagering is conducted, but which is not located at a fair.
Lastly, these provisions provide that a license for a person operating a concession stand at a racetrack be subject to a maximum $75 annual renewal licensing fee.
I am vetoing these provisions because I object to the expanded use of video gaming devices for simulcast pari-mutuel wagering. This is nonfiscal policy that does not belong in a budget. In addition, these provisions, taken together, raise serious constitutional concerns by potentially expanding gambling.
While I am vetoing all of these provisions, I am willing to consider narrowly focused legislation that would delay the sunset of the current law provision allowing simulcast intertrack wagering.
9.
Payment of Fiscal Year 2004-05 MHEC Membership Dues
Section 9101 (10k)
This provision requires that the Department of Administration pay membership dues, not to exceed $82,500, for the previous fiscal year for the Midwestern Higher Education Compact from a program revenue appropriation within the agency.
I am vetoing this provision because I object to this earmarking of payments.
A416
10.
Required Reports on Information Technology
Sections 9101 (11k) and 9101 (12k)
These provisions require the Department of Administration to report to the Joint Committee on Finance on plans to lease a new data center and the associated hardware and software costs. Also, any proposed acquisition of major management information system project resources is made subject to Committee review under a 14-day passive approval process.
I am vetoing these provisions because they are unnecessary. The Department of Administration remains committed to working with the Legislature on these issues. However, legally mandated reports unnecessarily limit information sharing and dialogue on these matters.
11.
Pension Obligation Lapses and Transfers
Section 79
This section codifies how the Department of Administration secretary will administer the lapses and fund transfers related to unfunded retirement liability debt service.
I am partially vetoing this section to ensure the budget intent to realize savings through the issuance of pension obligation bonds is achieved while the goal of property tax relief and adequate school funding is met under the Education and Workforce Development Section, Public Instruction, Item #4. This veto will allow the Department of Administration to allocate the costs of repaying the pension obligation bonds and fully recoup the savings residing in agency fringe benefit lines.
Building Commission
12.
General Fund Supported Borrowing Target
Sections 16p and 16r
These sections establish a target increase of general fund supported borrowing for the long-range state building program, beginning in the 2007-09 biennium. This target is set initially at $480 million and is adjusted each biennium by the percentage change in construction costs and reduced by general fund borrowing already authorized, but not yet issued, and general fund supported borrowing contained in executive bills and other legislation.
I am vetoing these sections in their entirety because they are unnecessary. The State of Wisconsin Building Commission exists to review the state building program and debt issuance strategies. The commission already considers general fund revenues and debt service, general fund borrowing already authorized but not yet issued, and general fund supported borrowing contained in executive bills and other legislation as it develops recommendations for additional general fund supported borrowing. A statutory target is unnecessary given this role.
Furthermore, the target is artificial as it is created by setting a $480 million starting point based on information from one year and inflating the amount based on percentage changes in construction costs, despite the fact that the target includes both construction and nonconstruction related borrowing. The target also does not allow for consideration of program requirements or regulatory requirements that may impact the commission's recommendations for new general fund supported borrowing.
EMPLOYEE TRUST FUNDS
13.
Required Nonrepresented State Employee Retirement Contributions
Sections 737e, 737r, 9101 (7k) and 9414 (1k)
