Here's what the report really said:
2010-11 General Fund Condition Statement
Based upon the November/December reports, the administration's general fund condition statement for 2010-11 reflects a gross ending balance (June 30, 2011) of $67.4 million and a net balance (after consideration of the $65.0 million required statutory balance) of $2.4 million.
Our analysis indicates a general fund gross balance of $121.4 million and a net balance of $56.4 million. This is $54.0 million above that of the administration's reports. The 2010-11 general fund condition statement is shown in Table 1.
arkred">Then you have the other items that were "forgotten"?
Minnesota/Wisconsin Income Tax Reciprocity Payment. On September 18, 2009, Minnesota's Governor informed Wisconsin's Governor that Minnesota was terminating the two states' income tax reciprocity agreement as of tax year 2010 (beginning January 1, 2010). Therefore, the agreement last applied to tax year 2009. Because more individuals live in Wisconsin and earn income in Minnesota than live in Minnesota and earn income in Wisconsin, Wisconsin's estimated net payment to Minnesota due on December 1, 2010, for tax year 2009, was $58.7 million. In addition, under the agreement, interest is applied to late payments. The daily interest cost owed to Minnesota is $4,584. To date, these payments have not been made.
Patients Compensation Fund. On July 20, 2010, the State Supreme Court ruled that the state cannot transfer monies out of the Injured Patients and Families Compensation Fund (Fund). In the 2007-09 state budget, $200 million was transferred from the Fund to advantage the general fund. The Court remanded the case to the circuit court with directions that the $200 million, with lost earnings and interest, be placed in the Fund. To date, the circuit court has not established an amount or date of payment.
A status conference was scheduled to be held on January 24, 2011, regarding progress of the parties in coming to an agreement in calculating earnings and attorney fees pertaining to the Fund transfer. That conference was cancelled and has been rescheduled for March 21, 2011. Pending the outcome of the court directive, the state may be required to return some, or all, of the court-ordered amount to the Fund in 2010-11.
2010-11 Appropriation Shortfalls
year.
There are some programs which are facing potential GPR shortfalls in the 2010-11 fiscal
Page 3
Medical Assistance. It is estimated that an additional $153.2 million GPR will be required to fund medical assistance (MA) benefit costs through June 30, 2011. The projected shortfall is primarily due to MA enrollment costs and service costs exceeding Act 28 estimates.
The current estimate reflects a number of adjustments that have partially offset the shortfall, including the following: federal legislation that extended, from December 31, 2010, to June 30, 2011, the period during which the state will receive an enhanced federal medical assistance percentage (FMAP); (b) the receipt of $23.1 million in federal "bonus payments" authorized under the Children's Health Insurance Program Reauthorization Act of 2009, for states that have simplified their enrollment and renewal processes; (c) $11.9 million in supplemental funding authorized by the Joint Committee on Finance at its December 14, 2010 meeting; and (d) $25.0 million in savings the state realized by making payments to managed care organizations in December, 2010, for services they will provide in January through April, 2011, in order to take advantage of the higher FMAP rates that applied prior to January 1, 2011.
The current estimate also reflects a reduction of $9.7 million in estimated GPR savings the MA program will generate under the Wisconsin Medicaid cost reporting (WIMCR) program in 2010-11, due to a change in the timing of payments the Department of Health Services will make to counties for certain MA-eligible services counties provide. This change is intended to address an issue raised by the Legislative Audit Bureau in a January 20, 2011, letter regarding certain 2009-10 expenditures that agencies charged to 2010-11 appropriations. Beginning in 2010-11, the costs of these payments will be charged to the fiscal year in which these payments are made.
In addition, the administration indicates that an additional $16.0 million GPR will be required in 2010-11 to support contracted administrative services for MA and other public assistance programs and an additional $5.0 million GPR will be required in 2010-11 to support income maintenance activities, including support for Milwaukee enrollment services.
Public Defender, Private Bar Shortfall. In December, 2010, the State Public Defender's shortfall was estimated at $8.9 million. After supplementation by the Joint Committee on Finance at its December 14, 2010, meeting, the remaining shortfall is projected at $3.5 million in 2010-11.
Department of Corrections. The Department of Corrections (DOC) is projecting an overall GPR funding shortfall of $21.7 million in 2010-11. According to the Department, the shortfall is associated with insufficient funding to address: the 2% raise provided for represented staff in 2009; (b) fringe benefit expenditures, which are higher than the anticipated supplement amount; (c) non-salary institutional costs, including health care services and inmate supplies; and (d) increased limited-term-employee costs related to providing mental health services.
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