The Chief Clerk records:

Presented to the Governor on 5-20-2011.

Read first time and referred:

The Honorable, The Senate:

According to Wisconsin School Law 121.87 in accordance with 13.172, the Board is required by law to submit the enclosed reports. School Law 121.87 states "...annually by May 1 the board of school directors of the school district operating under ch. 119 shall submit a report to the legislature under s. 13.172(2) that specifies the number, percentage, race, sex, grade and attendance area of pupils transferred outside their attendance area without written consent under s.121.85(6)(am)."

S301 Enclosed you will find a report that meets the requirements stated above. The total number of intra-district students bused under the Chapter 220 designation for the school year 2010-2011 equals 15,167. Of that number 662 either did not return a consent form or checked box indicating no consent. Students who have moved during the school year and not longer require parental consent were subtracted from the non-returned figure. The district did meet the requirement of nine-five percent (95%) parents providing consent.

The Honorable, The Senate:

As required by s. 13.94(1)(em), Wis. Stats., we have completed our annual financial audit and biennial program evaluation of the Wisconsin Lottery, which is administered by the Department of Revenue (DOR). We have issued an unqualified opinion on the Wisconsin Lottery's fiscal year (FY) 2009-10 and FY 2008-09 financial statements.

Sales of instant game and lotto tickets decreased 5.5 percent over the past five years, from $509.1 million in FY 2005-06 to $480.9 million in FY 2009-10. However, largely because of the introduction of a new multi-state lotto game, total sales increased 1.6 percent in FY 2009-10. From FY 2005-06 through FY 2009-10, gaming-related proceeds funded $699.3 million in property tax relief.

As a management tool, the Wisconsin Lottery calculates ticket sales for each instant game for the first 12 weeks after its introduction, as well as each game's net sales, which reflect both ticket sales and the costs of production and prizes paid, but not product information expenditures. When we included product information expenditures, we found that net sales for 12 instant games that were introduced in FY 2008-09 were lower than net sales for 36 unpublicized games introduced during the same period. We include a recommendation that the Wisconsin Lottery report to the Joint Legislative Audit Committee later this year on how it proposes to measure the effects of its product information expenditures.

We appreciate the courtesy and cooperation extended to us by Wisconsin Lottery staff in DOR. DOR's response follows our report.

The Honorable, The Legislature:

Pursuant to Wis. Stats., s. 50.04(5)(fr), I am submitting the Department of Health Services' annual report to the Legislature related to Class A violations committed by nursing homes, and forfeitures assessed on nursing homes for those violations. As defined by Wis. Stats., s. 50.04(3b), a Class A violation is ". . . a violation of this subchapter or of the rules promulgated thereunder which creates a condition or occurrence relating to the operation and maintenance of a nursing home presenting a substantial probability that death or serious mental or physical harm to a resident will result. . ."

The Department issued 19 Class A violations in calendar year 2010. The enclosed report provides details on all Class A violations, including the original forfeiture amount assessed and the status of payment.

The Honorable, The Legislature:

We have completed the third in a series of analyses of the overtime costs of state agencies, which for the first time also includes the University of Wisconsin System. Our analysis focuses on premium overtime, which is typically earned by employees who staff facilities with 24-hour operations or address emergency needs. Premium overtime is typically paid at 1.5 times the employee's hourly rate for hours in excess of 40 per week.

From 2006 to 2010, state agencies paid a total of $297.5 million in premium overtime. After declining in 2009, premium overtime payments increased 2.5 percent in 2010. The Department of Corrections (DOC) and the Department of Health Services (DHS) continue to account for the largest share of overtime costs. Both agencies' overtime payments increased from 2009 to 2010, although they declined over the five-year period we reviewed.

DOC and DHS have increasingly used surplus positions to control overtime costs and address staffing needs. Surplus positions are intended to be temporary, and statutes authorize their use when "necessary to maintain adequate staffing levels for high turnover classifications, in anticipation of attrition, to fill positions for which recruitment is difficult." However, we are concerned that the increased use of surplus positions for purposes or periods that may not have been intended by the Legislature has had the effect of circumventing statutory controls on position authority, and that existing reporting mechanisms may not provide sufficient information for the exercise of legislative oversight.

We appreciate the courtesy and cooperation extended to us by staff of the Office of State Employment Relations, the Department of Administration, DOC, DHS, University of Wisconsin System Administration, and other agencies reviewed.