Pursuant to Sec. 227.24 (1)(e)1, Stats., attached is an electronic copy of the Wisconsin Employment Relations Commission's fiscal estimate as to ERC 90 and ERC 100 relating to base wage calculation and distribution in collective bargaining. The Commission respectfully requests that you forward this estimate to all members of the Wisconsin Legislature and that Mr. Hoesly print the estimate as appropriate.

Pursuant to Sec. 227.24 (3), Stats., attached is an electronic copy of emergency administrative rules promulgated by the Wisconsin Employment Relations Commission on April 11, 2012 (and effective on April 19, 2012 upon publication in the Wisconsin State Journal) as to the calculation and distribution of base wages for the purposes of collective bargaining. The Commission respectfully requests that you forward these rules to all members of the Wisconsin Legislature. Thank you.

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 March 2012.

On March 1, 2012, the Conservation Fund cash balance closed at a negative $3.5 million. The cash balance was negative until March 14, 2012, when it closed at a positive $l.6 million. The Conservation Fund cash balance reached its intra-month low of a negative $5.8 million on March 8, 2012.

On March 1, 2012, the Medical Assistance Trust Fund cash balance closed at a negative $2.1 million (its intra-month low). The cash balance was negative until March 20, 2012, when it closed at a positive $313 thousand.

On March 26, 2012, the Lottery Fund cash balance closed at a negative $4.2 million. The cash balance was negative through March 31, 2012, when it closed at a negative $122 thousand. The Lottery Fund cash balance reached its intra-month low of a negative $6.0 million on March 29, 2012.

The Conservation Fund, Medical Assistance Trust Fund and Lottery 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.

A1019 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.

In accordance with s. 16.531 (3), Wisconsin Statutes, I am submitting this report on the completed calendar quarter ended March 31, 2012, with an assessment of the condition of the General Fund for the period from April 1, 2012 to September 30, 2012.

The General Fund will experience low balances from July 23, 2012, to September 19, 2012. During this period, it may become necessary to exercise the authority granted under s. 20.002 (11)(a), Wisconsin Statutes, pertaining to the reallocation of certain eligible surplus moneys.

I am pleased to submit to the Legislature the enclosed report as required by Chapter 153, Wisconsin Statutes. The report describes, "the content and number of reports and currency of information and reports generated in the previous calendar year" by the Wisconsin Hospital Association Information Center (WHAIC). WHAIC produced all required reports in a timely manner using the most currently available annual hospital discharge data. WHAIC continues to shorten the time between availability of the annual data set for analysis and web publication of these mandated reports.

As requested by the Joint Legislative Audit Committee, we have completed an audit of FoodShare Wisconsin, which is the State's program implementing the federal Food Stamp Act of 1964 to assist low-income individuals and families in purchasing food. The program is administered by the Department of Health Services (DHS). In February 2012, we released a related report on FoodShare benefits spent outside of Wisconsin (report 12-3).

FoodShare expenditures, including administrative costs, totaled $1.2 billion in fiscal year 2010-11. The number of FoodShare recipients increased from 462,204 in 2003 to 1.1 million in 2011. In addition to the economic recession, several factors account for the increase, including policy changes that have increased the number of individuals eligible for benefits, facilitated the application process, and decreased work- and education-related requirements.

In recent years, the accuracy with which FoodShare applicants' eligibility is determined and benefit amounts are calculated has improved. However, the percentage of FoodShare applications processed within federal time limits decreased from 90.3 percent in federal fiscal year (FFY) 2005-06 to 74.9 percent in FFY 2009-10.

In addition, we quantified problems with program integrity, and we identified concerns associated with the provision of benefits to ineligible recipients. For example, we identified 1,639 individuals who received FoodShare benefits in January 2012 even though they were ineligible: 447 recipients because they were incarcerated in state prisons and 1,192 recipients because they are fleeing to avoid prosecution or confinement for a felony offense or because they are in violation of a condition of probation or parole. We provided information on these cases to DHS and law enforcement for appropriate action. We identify several important questions for DHS to consider in effectively addressing fraud prevention and investigation efforts statewide, including how best to facilitate coordination of these functions among counties.

We appreciate the courtesy and cooperation extended to us by DHS, county agencies, and the advocacy organizations we contacted in completing our review. DHS's response follows the appendix.