SB39: Bill Text

LRB-1106/12

ALL:kjf/jld/lmk:rs

2007 - 2008 LEGISLATURE

2007 Senate BILL 39

February 14, 2007 - Introduced by Joint Committee on Finance, by request of Governor James E. Doyle. Referred to Joint Committee on Finance.

SB39,1,8 An Act to amend 20.003 (4) (fr), 20.866 (2) (xm), 49.175 (1) (p) and 49.175 (1) (zh); to repeal and recreate 16.529 of the statutes; and to affect 2005 Wisconsin Act 25, section 9155 (1w) (b); relating to: authorizing the secretary of administration to lapse moneys from appropriation accounts and transfer moneys between funds during the 2006-07 fiscal year, affecting position authorizations for certain state agencies, requiring the secretary of administration to lapse or transfer moneys to the general fund related to unfunded retirement liability debt service, and making appropriations.

Analysis by the Legislative Reference Bureau

This bill makes numerous appropriation changes, fund transfers, and position authorizations for the 2006-07 fiscal year. The bill:

1. Requires the secretary of administration to lapse to the general fund or transfer to the general fund from the unencumbered balances of state operations appropriations, other than sum sufficient appropriations and appropriations of federal revenues, an amount equal to $15,132,000 during the 2006-07 fiscal year.

2. Renews authorization for 270.92 FTE positions in six state agencies that expire on April 1, 2007, to enable continued operation of numerous state-owned power and waste water treatment plants.

3. Transfers from the agricultural chemical cleanup fund to the general fund $1,000,000 in fiscal year 2006-07.

4. Transfers from the agrichemical management fund to the general fund $3,500,000 in fiscal year 2006-07.

5. Transfers from the recycling fund to the general fund $3,500,000 in fiscal year 2006-07.

6. Transfers from the petroleum inspection fund to the general fund $5,000,000 in fiscal year 2006-07.

7. Increases a Department of Corrections (DOC) appropriation for funding adult correctional services by $56,275,300 for fiscal year 2006-07.

8. Increases a DOC appropriation for payments made under certain contracts by $6,000,000 for fiscal year 2006-07.

9. Increases a DOC appropriation for funding serious juvenile offender programs by $1,000,000 for fiscal year 2006-07.

10. Decreases a Department of Health and Family Services (DHFS) appropriation for funding state foster care and adoption services by $3,065,600 for fiscal year 2006-07.

11. Decreases a DHFS appropriation for funding the state's share of the Medical Assistance program by $69,700,600 for fiscal year 2006-07.

12. Decreases a DHFS appropriation for payments to pharmacies and pharmacists for prescription drug assistance for the elderly by $15,700,000 for fiscal year 2006-07.

13. Increases a DHFS appropriation for funding the Badger Care health care program by $5,500,000 for fiscal year 2006-07.

14. Lapses to the general fund $7,000,000 from the general program operations appropriation of the Office of the Commissioner of Insurance.

15. Increases a Department of Natural Resources appropriation from the conservation fund for paying debt service costs for state forest acquisitions by $7,000,000 for fiscal year 2006-07.

16. Increases a Public Defender Board appropriation for paying private bar and investigator reimbursements by $9,700,000 for fiscal year 2006-07.

17. For fiscal year 2006-07, increases a Department of Workforce Development allocation for child care services by $30,000,000 and decreases a Department of Workforce Development allocation for the earned income tax credit by $30,000,000.

18. Decreases an appropriation to the Joint Committee on Finance (JCF) to supplement general fund appropriations by $19,371,900 for fiscal year 2006-07.

19. Amends a provision in 2005 Wisconsin Act 25 that required the elimination of 13 attorney positions in the executive branch on June 30, 2007. The bill, instead, eliminates these positions on June 30, 2009.

20. Increases the amount of indebtedness that the state may contract to refund the whole or any part of any unpaid indebtedness used to finance tax-supported or self-amortizing facilities from $1,400,000,000 to $1,775,000,000.

21. Authorizes JCF, during the 2006-07 fiscal year, to lapse to the transportation fund any amount requested by the Department of Transportation (DOT) from the unencumbered balances of the appropriations to DOT for major development of state trunk and connecting highways and for the improvement of existing state trunk and connecting highways.

22. Increases the FTE authorized positions in the Department of Justice (DOJ) by 15.0 GPR positions to perform deoxyribonucleic acid analysis and increases an appropriation to DOJ to fund these positions by $96,600.

Current statutes contain a rule of proceeding governing legislative action on certain bills. Generally, the rule provides that no bill directly or indirectly affecting general purpose revenues may be adopted if the bill would cause the estimated general fund balance on June 30 of any fiscal year to be less than a certain amount of the total general purpose revenue appropriations for that fiscal year. For fiscal year 2006-07, the amount is $65,000,000. This bill increases that amount to $75,000,000.

In the 2003-05 fiscal biennium, obligations were issued by the state to pay the state's unfunded liabilities under the Wisconsin Retirement System (WRS). These liabilities had been incurred as a result of unfunded benefit improvements under the WRS and their cost had been allocated to each state agency as part of its required WRS contributions. This bill requires the secretary of administration during the 2005-07 fiscal biennium to lapse or transfer to the general fund from appropriations to each state agency moneys that would otherwise have been expended by the state agency to pay the WRS unfunded liabilities had the obligations not been issued. In addition, the bill requires the secretary in each future fiscal biennium to lapse or transfer these moneys to the general fund based on each state agency's proportionate share of all state retirement contributions that are required to be paid in that fiscal biennium.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB39, s. 1 Section 1. 16.529 of the statutes is repealed and recreated to read:

SB39,3,3 16.529 Lapses and fund transfers relating to unfunded retirement liability debt service. (1) The definitions in s. 20.001 are applicable in this section.

SB39,4,2 (2) Notwithstanding ss. 20.001 (3) (a) to (c) and 25.40 (3), beginning in the 2007-09 fiscal biennium, during each fiscal biennium the secretary shall lapse to the general fund or transfer to the general fund from each state agency appropriation specified in sub. (3) an amount equal to that portion of the total amount of principal and interest to be paid on obligations issued under s. 16.527 during the fiscal biennium that is allocable to the appropriation, as determined under sub. (3).

SB39,4,4 (3) The secretary shall determine the amounts of the allocations required under sub. (2) as follows:

SB39,4,7 (a) The secretary shall first determine the total amount of Wisconsin Retirement System contributions that are to be paid by the state under s. 40.05 during the fiscal biennium.

SB39,4,15 (b) The secretary shall then determine the percentage of the total amount determined under par. (a) that is allocable to each state agency appropriation from which Wisconsin Retirement System contributions under s. 40.05 are paid. The secretary shall exclude from this determination any appropriation from which a lapse or transfer to pay any principal or interest amount on obligations issued under s. 16.527 would violate a condition imposed by the federal government on the expenditure of the moneys or if the lapse or transfer would violate the federal or state constitution.

SB39,4,20 (c) For each appropriation identified under par. (b), the secretary shall then apply the percentage calculated under par. (b) to the total amount of principal and interest to be paid during the fiscal biennium on obligations issued under s. 16.527. This amount is the portion of the total amount of principal and interest paid on the obligations during that fiscal biennium that is allocable to each appropriation.

SB39, s. 2 Section 2. 20.003 (4) (fr) of the statutes is amended to read:

SB39,4,22 20.003 (4) (fr) For fiscal year 2006-07, $65,000,000 $75,000,000.

SB39, s. 3 Section 3. 20.866 (2) (xm) of the statutes is amended to read:

SB39,5,10 20.866 (2) (xm) Building commission; refunding tax-supported and self-amortizing general obligation debt. From the capital improvement fund, a sum sufficient to refund the whole or any part of any unpaid indebtedness used to finance tax-supported or self-amortizing facilities. In addition to the amount that may be contracted under par. (xe), the state may contract public debt in an amount not to exceed $1,400,000,000 $1,775,000,000 for this purpose. Such indebtedness shall be construed to include any premium and interest payable with respect thereto. Debt incurred by this paragraph shall be repaid under the appropriations providing for the retirement of public debt incurred for tax-supported and self-amortizing facilities in proportional amounts to the purposes for which the debt was refinanced. No moneys may be expended under this paragraph unless the true interest costs to the state can be reduced by the expenditure.

SB39, s. 4 Section 4. 49.175 (1) (p) of the statutes is amended to read:

SB39,5,14 49.175 (1) (p) Direct child care services. For direct child care services under s. 49.155, $310,332,100 in fiscal year 2005-06 and $313,432,100 $343,432,100 in fiscal year 2006-07.

SB39, s. 5 Section 5. 49.175 (1) (zh) of the statutes is amended to read:

SB39,5,19 49.175 (1) (zh) Earned income tax credit supplement. For the transfer of moneys from the appropriation account under s. 20.445 (3) (md) to the appropriation account under s. 20.835 (2) (kf) for the earned income tax credit, $55,232,000 in each fiscal year 2005-06 and $25,232,000 in fiscal year 2006-07.