The Honorable, The Legislature:

This report is transmitted as required by s. 20.002(11)(f), Wisconsin Statutes, (for distribution to the appropriate standing committees under s. 13.172(3), Wisconsin Statutes) and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative cash balances during the month of February 2011.

On February 1, 2011, the Medical Assistance Trust Fund cash balance closed at a negative $199.5 million (its intra-month low). This negative balance continued through February 28, 2011, when the fund's cash balance closed at a negative $194.7 million.

On February 1, 2011, the Police and Fire Protection Fund cash balance closed at a negative $34.1 million (its intra-month low). This negative balance continued through February 28, 2011, when the fund's cash balance closed at a negative $30.0 million.

On February 1, 2011, the Conservation Fund cash balance closed at a negative $14.5 million. This negative balance continued through February 28, 2011, when the fund's cash balance closed at a negative $22.5 million. The Conservation Fund cash balance reached its intra-month low of a negative $31.3 million on February 24, 2011.

On February 1, 2011, the Democracy Trust Fund cash balance closed at a negative $300 thousand. This negative balance continued through February 28, 2011, when the fund's cash balance closed at a negative $901 thousand (its intra-month low).

On February 22, 2011, the Support Collections Trust Fund cash balance closed at a negative $2.6 million. This negative balance continued intermittently through February 28, 2011, when the fund's cash balance closed at a negative $1.1 million. The Support Collections Trust Fund cash balance reached its intra-month low of a negative $3.3 million on February 23, 2011.

The Medical Assistance Trust Fund, Police and Fire Protection Fund, Conservation Fund, Democracy Trust Fund, and Support Collections Trust fund shortfalls were due to the difference in the timing of revenues and expenditures, were not in excess of the statutory interfund borrowing limitations and did not exceed the balances of the funds available for interfund borrowing.

The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.

Referred to joint committee on Finance.

Senate Clearinghouse Rule 10-125

Submitted by Department of Corrections.

Senate Clearinghouse Rule 10-126

Submitted by Department of Corrections.