We have completed an audit of the Kids Information Data System (KIDS), as directed by the Joint Legislative Audit Committee. The $51.4 million automated child support enforcement system, which was developed by the former Department of Health and Social Services and is currently the responsibility of the Department of Workforce Development, was implemented statewide in September 1996.

Although several factors influenced the development of KIDS, in order to avoid serious financial consequences the Department gave priority to ensuring the system would meet the requirements of the federal Family Support Act of 1988. While this helped to ensure conditional federal certification of KIDS in September1997, it also led to the development of a system that does not fully meet the needs of the county staff who rely on it to fulfill their day-to-day responsibilities.

Currently available management information is inadequate for reaching conclusions about the systems overall effect on the child support program. However, we were able to determine that collections for cases that involved county enforcement services increased by $19.3 million, to $459.6 million, during the first full year of the systems operation. This is a 4.4 percent increase over the previous year, but it is less than the increase in each of the four years that preceded the implementation of KIDS.

The Department has requested the release of funding necessary to operate the system for the remainder of fiscal year 1997-98, as well as to modify it so additional state and federal requirements can be met. The Department has not, however, requested funds to address the outstanding county needs. We have identified a source of funding to address these needs and include a recommendation to the Department for developing a plan and establishing a deadline to address the continuing operational problems experienced by the counties.

We appreciate the courtesy and cooperation extended to us by the many county staff who assisted us during the course of this evaluation, as well as by the Department of Workforce Development. The Departments response is Appendix III.

Enclosed please find a copy of the Department's report entitled "Funding Wisconsin's Fish and Wildlife Account."

This report fulfills the Legislative directive from Wisconsin Act 1, signed in March, requesting the Department to analyze alternative sources of funding for the Fish and Wildlife Account and "include recommendations as to the preferable options for the alternative funding sources" (see attached Legislative Charge.)

We hope that you will find the report a satisfactory fulfillment of this directive. If you have any questions, please do not hesitate to contact me.

To the Honorable, the Senate:

The following bill(s), originating in the Senate, have been approved, signed and deposited in the office of the Secretary of State:

I have approved Senate Bill 362 as 1997 Wisconsin Act 41 and have deposited it in the Office of the Secretary of State. I have exercised the partial veto in sections 11, 12 and 9423 (1) of the bill.

Senate Bill 362 makes a number of changes needed to resolve technical problems in the 1997-99 budget bill (1997 Wisconsin Act 27). these changes will make budget execution easier and better reflect legislative and executive intent in the budget bill. However, one of the changes would inadvertently create a new problem.

S375 During deliberations of the Milwaukee child welfare budget before the Joint Committee on Finance (JCF), federal Substance Abuse Block Grant (SABG) funds allocated to Milwaukee County under the Community Aids program were redirected to the state for services to child welfare clients in Milwaukee County. After passage of the budget bill the Department of Health and Family Services (DHFS) determined that these SABG funds had also been included in the amount specified in statute as Milwaukee County's total required contribution for child welfare services provided by DHFS in Milwaukee County. Thus the net result of the JCF action was to double count these federal funds as part of Milwaukee County's contribution. To correct this double count problem, sections 11, 12 and 9423 (1) of Senate Bill 362 statutorily reduce the amount that Milwaukee County is to contribute for the provision of child welfare services in the county by $791,500 in FY 98 and $1,583,000 in FY99. However, the total contribution required in statute should not have been reduced. I am vetoing these sections because I want the entire amount of Milwaukee County's total contribution specified in statute. If DHFS determines that the SABG funds that were redirected from Community Aids cannot administratively be allocated to Milwaukee County, I am requesting the Secretary of Administration to recommend statutory language changes that will correct the JCF double count which was included in 1997 Wisconsin Act 27.

Overall the technical changes in Senate Bill 362 are a very positive step in the implementation of the biennial budget. I commend the Legislature for making several of the changes needed to do this.

To the Honorable, the Senate:

The following bill(s), originating in the Senate, have been approved, signed and deposited in the office of the Secretary of State:

Senate Clearinghouse Rule 97-102

Submitted by Department of Administration.

Senate Clearinghouse Rule 97-113

Submitted by Department of Agriculture, Trade and Consumer Protection.

The Chief Clerk records:

Senate Bill 316

Senate Bill 323

Senate Bill 327

Senate Bill 344

Senate Bill 362

Presented to the Governor on December 12, 1997.

The Chief Clerk records:

Senate Bill 324

Senate Bill 359

Presented to the Governor on December 15, 1997.