Passage.
Ayes, 6 - Senators
Stepp, Harsdorf, Brown, Plale, Lassa and Coggs.
Noes, 1 - Senator
Reynolds.
Senate Bill 325
Relating to: indoor environmental quality in schools and granting rule-making authority.
Passage.
Ayes, 6 - Senators
Stepp, Harsdorf, Brown, Plale, Lassa and Coggs.
Noes, 1 - Senator
Reynolds.
Assembly Bill 155
Relating to: a municipality's and county's ability to eliminate certain nonconforming buildings or premises.
Concurrence.
Ayes, 7 - Senators
Stepp, Harsdorf, Brown, Reynolds, Plale, Lassa and Coggs.
Noes, 0 - None.
Cathy Stepp
Chairperson
The committee on Veterans, Homeland Security, Military Affairs, Small Business and Government Reform reports and recommends:
Senate Joint Resolution 33
Relating to: prohibiting partial vetoes from creating new sentences (first consideration).
Adoption.
Ayes, 4 - Senators
Brown, Zien, Kanavas and Wirch.
Noes, 1 - Senator
Breske.
Senate Bill 346
Relating to: procedure for the altering of any park entrance at Perrot State Park.
Passage.
Ayes, 3 - Senators
Brown, Zien and Kanavas.
Noes, 2 - Senators
Breske and Wirch.
Senate Bill 347
Relating to: expanding eligibility for the veterans and surviving spouses property tax credit.
Passage.
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Ayes,
5 - Senators
Brown, Zien, Kanavas, Breske and Wirch.
Noes, 0 - None.
Senate Bill 390
Relating to: a harbor assistance grant for the construction of a dockwall in the city of Marinette.
Passage.
Ayes, 5 - Senators
Brown, Zien, Kanavas, Breske and Wirch.
Noes, 0 - None.
Assembly Bill 684
Relating to: procedure for the altering of any park entrance at Perrot State Park.
Concurrence.
Ayes, 3 - Senators
Brown, Zien and Kanavas.
Noes, 2 - Senators
Breske and Wirch.
Ronald Brown
Chairperson
__________________
State of Wisconsin
Legislative Audit Bureau
October 18, 2005
The Honorable, The Legislature:
The State's Annual Fiscal Report for fiscal year (FY) 2004-05, which was issued on October 17, 2005, shows an unreserved, undesignated General Fund surplus balance of $4.1 million. I am writing to inform you of accounting changes by the Department of Administration that led to the reported surplus balance. These changes also resulted in the continuation of a deficit balance in the Medical Assistance Trust Fund at the end of FY 2004-05.
Throughout much of FY 2004-05, the Medical Assistance Trust Fund had a deficit balance because expenditures exceeded anticipated revenues. To address the shortfall,
2005 Wisconsin Act 2 directed that $50.0 million be transferred from the General Fund to the Medical Assistance Trust Fund.
2005 Wisconsin Act 15 subsequently directed that an additional $75.0 million be transferred to the Medical Assistance Trust Fund to cover the full deficit by the end of FY 2004-05.
On June 28, 2005, the Department of Administration transferred $75.0 million from the General Fund to the Medical Assistance Trust Fund. On June 29, 2005, it reported to the Legislature on deficit cash balances, as required by s.
20.002(11)(f), Wis. Stats. In explaining the deficit in the Medical Assistance Trust Fund during May 2005, the Department of Administration indicated that "(t)his deficit will decline by $125.0 million in June when revenue is transferred from the general fund to the Medical Assistance Trust Fund as required by
2005 Wisconsin Act 2 and
2005 Wisconsin Act 15."
Last week, it became apparent that because of errors we identified in the Department of Revenue's accounting for individual income tax revenues, the General Fund's unreserved, undesignated balance at the end of FY 2004-05 would have been reported as a deficit of $50.9 million in the Annual Fiscal Report. However, as the report was finalized, the Department of Administration made the following accounting changes. First, it reversed the June 28, 2005 transfer of $75.0 million from the General Fund to the Medical Assistance Trust Fund. Second, it divided the $75.0 million between two fiscal years, so that $20.0 million was reported during FY 2004-05 and the remaining $55.0 million was reported during FY 2005-06.
Because of these changes, the Annual Fiscal Report included a positive unreserved, undesignated General Fund balance of $4.1 million as of June 30, 2005. However, because the entire $75.0 million transfer specified in
2005 Wisconsin Act 15 was not made as of the end of FY 2004-05, a deficit balance of $53.9 million was reported in the Medical Assistance Trust Fund.
Representatives of the Department of Administration believe that the reversal of the initial $75.0 million transfer and subsequent division of funds between two fiscal years is allowable under s.
16.52(12), Wis. Stats., which allows that agency's Secretary to determine the timing of interfund transfers when the Legislature does not specify a date. Agency representatives also indicate that if the Department of Revenue's accounting errors had been known, the Department of Administration would not have transferred $75.0 million from the General Fund on June 28, 2005, because sufficient funds would not have been available.
We are concerned because the Department of Administration's action is in conflict with the Legislature's intent that the Medical Assistance Trust Fund be balanced at the end of FY 2004-05. We are also concerned that the Department of Administration's interpretation of s.
16.52(12), Wis. Stats., could allow it to delay indefinitely the legislatively mandated transfers to the Medical Assistance Trust Fund under Act 15, as well as any other transfer the Legislature may authorize without specifically stating the date by which it is to be made.
We review the financial statements included in the Annual Fiscal Report because the unreserved, undesignated General Fund balance represents funds available for general appropriation. However, we do not audit those financial statements. The audited financial statements for FY 2004-05 prepared in accordance with generally accepted accounting principles will be included in the State's Comprehensive Annual Financial Report, which is expected to be issued in December 2005.
Please contact me if you have any questions.
Sincerely,
JANICE MUELLER
State Auditor
State of Wisconsin
Ethics Board
October 18, 2005
The Honorable, The Senate:
The following lobbyists have been authorized to act on behalf of the organizations set opposite their names.
For more detailed information about these lobbyists and organizations and a complete list of organizations and people authorized to lobby the 2005 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us
Brooks, Bryan E.I. du Pont de Nemours & Co.
Burke, Brian Partnership to Preserve Our Entertainment Resources, Inc.
Franken, Andrew Delta Dental Plan of Wisconsin Inc
Gordon, Fredrick G. Partnership to Preserve Our Entertainment Resources, Inc.
Halbrooks, David Partnership to Preserve Our Entertainment Resources, Inc.
Lebakken, Jeffrey Wisconsin Rental Dealers Association
O'Connor, Alice Wisconsin Coroners and Medical Examiners Association
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Peters, Catherine American Cancer Society
Peterson, Craig Partnership to Preserve Our Entertainment Resources, Inc.
Reese, Gina Musculoskeletal Transplant Foundation
Springer, Thomas J E.I. du Pont de Nemours & Co.
Strosahl, Mark Northern Counties Legislative Consortium
Vaughan, Michael Wisconsin Coroners and Medical Examiners Association
Viohl, Bridget Partnership to Preserve Our Entertainment Resources, Inc.
Also available from the Wisconsin Ethics Board are reports identifying the amount and value of time state agencies have spent to affect legislative action and reports of expenditures for lobbying activities filed by organizations that employ lobbyists.
Sincerely,
R. Roth Judd
Executive Director
State of Wisconsin
Department of Administration
October 17, 2005
The Honorable, The Legislature:
