Posts Tagged ‘Government Reform’

Doctors Around Country Outraged at Wisc. “Fake Sick Note” Scam

MacIver News Service | February 6, 2012

[Madison, Wisc...] A dozen doctors from Wisconsin and around the country contacted the Wisconsin Department of Regulation and Licensing to express their disappointment in the doctors accused of writing fake sick notes to protesters on February 18, 2011 at the Capitol, according to documents obtained by the MacIver News Service.

Some of the doctors expressed concern, others outrage, and some even filed formal complaints against the sick note doctors. In general, the doctors felt the incident reflected poorly on the entire medical profession.

“If the above is true, then it is unprofessional and unethical,” wrote Dr. Ronald Long. “Certainly it is a fraud against the citizens and medical board of Wisconsin.”

The documents were turned over to MNS in response to an open records request.

The controversy surrounding doctors handing out fake sick notes to protesters skipping work during the February 2011 protests erupted after a MacIver News Service report, which documented the incident. The Wisconsin Medical Examining Board eventually identified seven of the doctors and issued them reprimands.

Many of the doctors who complained to the board before the judgment, suggested far more severe punishments. Some even called for criminal charges.

“I believe this physician’s [Shropeshire] medical license should be revoked,” wrote Dr. Susan Torhorst.

“This is a mockery of medicine, and a complete fraud.  There is no ‘sickness’ here, and such behavior by trusted professionals in your state is completely unacceptable and illegal,” wrote Dr. Paul Maguire.

“If culpable, the man [Dr. Shropshire] should have his license suspended and rehabilitated as to the appropriate purpose of his privilege,” wrote Dr. Scott Sweeney.

“While all people, including physicians, are entitled to our own political and other opinions, there is clearly a line drawn when it comes to utilizing the priviledges of licensure in the manner exhibited by Dr. Shropshire,” wrote Dr. Stewart Eads Jr.  “Specifically, in the State of Wisconsin, this unprofessional conduct is expressly prohibited by Wisconsin law under ‘Administrative Code Med 10.02(2)(m)’ which unambiguously prohibits ‘Knowingly making any false statement, written or oral, in practicing under any license, with fraudulent intent.’”

Six of the seven sick note doctors were affiliated with the University of Wisconsin. The University said it decided to discipline the doctors, but they are appealing it. UW won’t release any other information about the incident until the appeals process is over. However, a retired professor with the Medical college was happy to share his thoughts with the Medical Examining Board.

Dr. Jeffrey Jones, retired Professor of Medicine at the UW Medical School, listed three specific points about the incident. 1. “The so-called patient-physician interaction and care which occurred was well below any reasonable community standard of care.” 2. “The incident makes a mockery of a licensed physician’s role as a neutral judge of biological facts, a role which is important to the well being of the public.” 3. “The physicians have faculty appointments with the University of Wisconsin Medical School, and provide a very poor model for physicians in training.”

“These physicians have disgraced the Medical profession in general and the UW Medical School in particular. The black eye given to the University on the national stage is well deserved,” wrote Dr. Andre Thebert. “Providing cover for protesters by handing out phony medical excuses is fraud, pure and simple.”

A doctor from the Medical College of Virginia wrote directly to two of the doctors.

“If this report is not true, such a vicious allegation would be an excellent ‘teachable moment’ to set before your students as an example of how ‘activism’ by professionals charged with the highest levels of professional conduct can be misinterpreted to the detriment of the profession as a whole,” wrote Dr. Raleigh Powell, Medical College of Virginia. “If the activities in the article are indeed true I would hope that you recognize by now the unethical nature of this activity and not only cease and desist but also apologize for the insult to the profession that such a lapse of judgement [sic] represents.”

The Medical Examining Board reprimanded only seven doctors in connection with the incident, first reported by the MacIver News Service in February 2011, wherein doctors were handing out sick notes to protesters who had skipped work and needed an excuse. The University of Wisconsin said it identified 22 doctors who might have taken part. The Wisconsin State Journal reported a committee of the board plans to decide this month whether to investigate the additional doctors.

To date, no one from the Medical Examining Board has requested a copy of the MNS footage of the incident.

Wigderson Reviews A Nation of Moochers

By James Wigderson
Special Guest Perspective for the MacIver Institute

There is a reason that WTMJ’s Charlie Sykes is one of Wisconsin’s most popular radio talk show hosts.  A successful talk show host gathers the information and presents it in a way that is both entertaining and informative to the listener. In A Nation of Moochers:  America’s Addiction To Getting Something For Nothing, Sykes brings his radio host’s skill to writing an indictment of the present state of American culture.

This is not a cheerful book. Dorothy does not click her heels together three times to return to Kansas, nor will wishful thinking suddenly return us to the days of Calvin Coolidge. The assessment of our culture is bleak.

It is the culture, not just our economic situation. While the book is a dismal narrative of statistics detailing the economic impact, the net result of the great expansion of the modern welfare state under both Republicans and Democrats has been to create a culture of dependency, a nation of moochers.

Who are the moochers? As Richard Nixon would have said, we are all moochers now. Moocherism is bipartisan, even nonpartisan, and reaches into every socioeconomic strata.

From Hollywood movie moguls demanding subsidies to pay for movie star contracts to homeowners demanding bailouts for mortgages they could never afford. From free breakfast programs in schools from affluent neighborhoods to Archer Daniels Midland seeking ethanol subsidies. From state employees expecting taxpayers to pay for lavish retirement and health benefits, to middle class college students applying for food stamps. As Walt Kelly’s Pogo said, “We have met the enemy, and he is us.” Our lust for Other People’s Money is only limited by our relative “suckage.”

Competition shifts from the marketplace to lobbying the government for financial boons. My favorite example from Sykes’ book was the decision by Disney to pursue $200 million in government subsidies to promote tourism. If there is any corporation in America that seems to thrive under capitalism, it would be Disney. Yet as we saw recently, the President of the United States made the pilgrimage to Disneyworld to promote tourism.

Ironically, it was President Obama who single-handedly damaged tourism in Las Vegas when he called for corporations to stop holding conventions there. The trouble with crony capitalism is that you never know when you’ll cease to be the favored crony.

Sykes walks us through the bailout of AIG to show how turning corporations into moochers, deeming them “too big to fail,” is ultimately corrupting to the political process. On all sides of the negotiations concerning the failure were representatives and former representatives of politically connected Goldman Sachs. Conflicts of interests were swirling in the room, and AIG’s bailout broke new ground by placing the full risk on the taxpayers. Goldman Sachs took away $13 billion.

The justification for the bailouts was a yawning financial abyss that impended if the government did not take immediate action to stabilize the markets. It’s an appeal that even reaches conservatives. However, had conservatives in Washington known of the cost culturally, would they have reluctantly agreed to the bailouts? Had they been able to envision the bankruptcy lawyers advertising, “the big banks got their bailouts, now get yours,” would the possible financial breakdown been more endurable? We may never know, but the nation is paying the cultural costs of those bailouts now.

But what is a corporation, or a state, or even an individual, supposed to do? If the federal government is collecting from all of us with one hand, borrowing money with the other, and “making it rain” with a third, should we be surprised when everyone starts buying buckets to collect? Should we be shocked when the ethos of our age changes from, “Ask not what your country can do for you,” to, “Where’s mine?”

From there we are set on the road to ruin, despotism, and even “serfdom” in Hayek’s phrase.

It isn’t hard to predict the course we are headed. The financial ruins of Greece are just ahead. We can point to other historical economic calamities as our future, such as Latin America in the 1970s. Further back in time, and we can see the political corrosion of dependency, as when Julius Caesar bought the masses to ensure his popularity. He was ultimately stopped, but by then it was too late for the Republic.

It’s impossible to read A Nation of Moochers without seeing the context of our times. Indeed, Sykes does not shy from engaging current controversies. The battles with Wisconsin’s government employee unions are featured prominently in, “The Moocher Empire Strikes Back.” Sykes puts Wisconsin’s struggle into perspective by reminding us that other states do not allow public employees to collectively bargain at all. Sykes quotes columnist Jeff Jacoby, “democracy, fundamental rights, and freedom were doing just fine in all of them.”

Sykes asks early in the book if the nation is at a tipping point. Can we bring the country back from one of patronage to one of entrepreneurship? Is it too late to stop the mooching? After a dip in the dystopian pond of Ayn Rand (mercifully brief), Sykes says the challenge is to “step away from the trough.”

”…the revolution against Moocherism requires redefining our expectations of what others owe to us and what we owe to ourselves. Put bluntly, we need to restore some of the stigma to mooching,” he writes.

The unanswered question is whether Sykes’ prescription is a little like the doctor telling the patient dying of lung cancer to give up smoking. We may learn this year if the tipping point has already passed us by.

So, What Became of the GAB’s Searchable Recall Petition Database?

MacIver News Service | February 2, 2012

[Madison, Wisc...] The top official at the Government Accountability Board says the GAB  decided not to buy software to transfer handwritten recall petitions into a searchable database, because it’s too expensive.  However, the Milwaukee Journal Sentinel reported more than two weeks ago that the state already bought the software for $100,000.

The Wisconsin Eye public affairs network asked GAB executive director Kevin Kennedy Wednesday about the decision not to create a searchable database that would be available to the public.  Kennedy said they didn’t have the manpower or the money.

“The type of software you would need to convert these PDF files is very expensive,” Kennedy said. “When we do our duplicate review we might have a searchable database but it will be limited only to names.”

So, did they spend money on software that can create a database from scanned handwritten documents?

On January 21, the Milwaukee Journal Sentinel reported the GAB will be “relying on newly purchased software that can convert handwritten names into entries in six searchable databases.”

Do they have the software, or not? Are they using it, or not?  If the software can read the printed names and signatures, why can’t it convert the addresses as well?

Why has the GAB chosen not to put  a searchable database online?

Do they have any internal work product that would be useful to independent efforts to validate the signatures?

The MacIver News Service contacted the GAB on Thursday. It has not yet received a response.

Wisconsin Advances an Amazing Education Reform Measure

By James Wigderson
Special Guest Perspective for the MacIver Institute

Parents in Wisconsin had a tremendous victory last week when the legislature passed a change in the state’s open enrollment law making it easier for students to transfer from one school district to another. The change in the law expands the traditional window for parents to participate in the open enrollment program from three weeks to three months. The change in the law also includes a compromise that allows for year-round transfers of students between school districts if the students are welcomed and if the parents find it necessary.

These changes in the open enrollment law were a tremendous victory for supporters of public school choice in Wisconsin and the victory was the highlight of the annual “School Choice Week.”

The expansion in the allowed open enrollment time also comes at a time of renewed energy in reforming education under Governor Scott Walker and the legislature. Under ACT 10, the school districts in Wisconsin have greater flexibility in setting the work rules, including expected hours in the workday and with seniority.

The sweeping changes of ACT 10 are also allowing school districts to experiment with merit pay. As the MacIver Institute recently reported, the Cedarburg and Hartland-Lakeside School Districts will be among the first to try merit pay to see if it improves student performance.

The governor has also announced new legislation is coming that will rate all schools on proficiency and student progress, create a teacher and principal evaluation system, and implement the Read to Lead proposed reforms.

This is a dramatic change in direction from when school choice was on the defensive during the Jim Doyle era. Then Doyle and the teachers unions tried to prevent public online charter schools from using open enrollment, effectively shutting them down. When that was unsuccessful they capped enrollment just as they fought raising the caps on enrollment in the Milwaukee Choice Program.

The compromise legislation that just passed allows parents to move their children to another school district under the open enrollment program year-round provided the resident school district agrees it is in the child’s best interests. However, if the parents are unable to get the approval of the resident school district, they can appeal to the state Department of Public Instruction whose determination of what is in the child’s best interests would be final.

As a parent of two children in elementary school I understand the need for options. I went through a situation myself when it was no longer in my children’s best interests to continue in our ‘home’ public school district after it became clear that my newspaper columns for the Waukesha Freeman had made some unprofessional teachers hostile toward my kids.

Unfortunately I was not made aware of the situation until well after the open enrollment period had ended. It was too late for us to consider an online charter school in another district or switching my oldest son to a neighboring district. There was no way I could allow my children to be deprived of a proper education with parental involvement in their activities, so I had to make the decision to switch them to a private school. I might have made a different decision had those options been available to me at the time. Thank heavens we were able to afford it.

We can all imagine other scenarios under which a parent may discover, at an inconvenient time for the school bureaucrats, that the school system is inadequate for their child. For example, a child may find that the district’s reading program is incompatible with the child’s needs. While it may work for other children, for some reason it doesn’t work for that child, and the parents discover that it isn’t working after the school year has started. Wouldn’t it be preferable to move that child as soon as possible into a district that has a reading program more tailored to that child’s needs?

Before the passage of SB2, parents would have to wait until the following February to pursue other public school options for their kids, and would have to wait until the following September before their child would get into a new public school.

Thanks to SB2, students will no longer be able to be held captive by arcane regulations or an occasional inconsiderate administrator.

This is at the heart of the school choice movement—giving parents the ability to make the proper educational choices for their children.

There is still work to be done when it comes to educational choice. Just last week the National Alliance for Charter Public Schools ranked Wisconsin 36 out of the 42 states with public charter school laws. Wisconsin was faulted limiting the authorizers of public charter schools to local school boards and a few universities. They suggested Wisconsin needs a board that can authorize charter schools statewide.

However, the latest expansion of public school choice enrollment statewide, year wide is welcome news for parents looking for the best educational opportunities for their children. How fitting that this news came during School Choice Week. Kudos to Governor Walker, who is poised to sign SB2, and to members of both parties to voted for this reform.

Statewide Public School Choice Coming to Wisconsin

MacIver News Service | January 26, 2012

[Madison, Wisc...] More than a year after it was introduced, legislation that will bring unprecedented school choice to families who wish to enroll in Wisconsin’s public schools passed the Assembly Thursday.

Senate Bill 2, which expands the timing and options behind the state’s open enrollment policies, will allow parents and children more freedom than ever before when it comes to choosing the school that is right for them.

The legislation, now on its way to the Governor for his signature, will change the process of open enrollment. The law will allow for a freer transfer of students between public schools across districts. This legislation expands the formal application process from a three week span to three months and include provisions for year-round transfers for students that aren’t happy with their current schools.

The sweeping reform comes at the conclusion of  National School Choice Week and the new policy is a major victory for educational freedom for parents and schools alike. Families will now have greater options to find the public school that works best for their children.

This will have a significant impact reaching from regular public schools to charter and virtual schools across the state. Along with the labor reforms enacted in 2011, this legislation has the potential to dramatically change the education landscape in Wisconsin. By creating a free market within Wisconsin’s public schools the new law is expected to foster competition between school districts and increase the influence of parents in areas as far reaching as curriculum development and school operations.

Currently, families have a three-week window in the beginning of February during which they can apply to attend a public school other than their local neighborhood school. The resident school board can prevent students from leaving by rejecting their application and informing parents by April.

Parents will now have the ability to apply to up to three districts in an expanded timeline for open enrollment transfers. The application period will now run from the beginning of February to the end of April and families will know whether or not their transfer has been approved by June – in time for the upcoming school year. This means that parents will have a better idea of the options available for their children and in a more timely manner than the previous system.

Moreover, stipulations exist that will allow students to transfer outside of this window as well. If students meet certain conditions parents can apply for their transfer at any time during the year. If the receiving district has room available for the student, then they will be compelled to accept the transfer unless the district and the Department of Public Instruction both rule that the transfer does not have the student’s best interests at heart.

In short, parents disappointed with their child’s school will have more options for transfer – and they won’t have to wait for that three-week period in February to act. This means greater freedom for parents and, ideally, fewer instances of students being trapped in schools that don’t fit them for long stretches of time.

School districts will have to determine the number of open slots for all students – both regular and special education based – in January. These limits will be determined by criteria such as class size, student-teacher ratios, and enrollment projections. Students that are excluded from transferring thanks to these limits will be put on a waiting list, and parents will know whether or not they have been accepted by the third Friday in September.

The legislation had the support of educational groups across the state. The Wisconsin Coalition of Virtual School Families was the legislation’s leading proponent and the American Federation for Children, the Wisconsin Association of School Boards, and the Wisconsin Association of School District Administrators all rallied behind the plan. The expansion is not expected to have a significant fiscal effect on public education, but will reach thousands of parents and families across the state. It is expected to be signed into law by Governor Scott Walker within days.

Parent advocates boast that this bill amounts to is the passage of year-round public school choice for Wisconsin’s families. Parents will have more flexibility and a greater awareness not only of their schooling options, but also over when their children can transfer if they decide that their neighborhood school is not for them.

What the Wisconsin School Accountability Program Should Look Like

By Christian D’Andrea
MacIver Institute Education Policy Analyst

In the near future the final recommendations of three task forces dedicated to improving public education in Wisconsin are expected to be unveiled. This includes the work of the Wisconsin School Accountability Design Team, a group saddled with creating a metric by which the state’s schools will be graded.

The ultimate goal of this task force is to create a comprehensive and transparent system that helps parents, students, and citizens better understand the quality of their neighborhood schools. Ultimately, it would gauge the progress of both students and teachers and provide performance comparisons across districts, states, and even countries. It will take the place of the beleaguered No Child Left Behind program, a federal mandate that often failed to create meaningful positive change in the state’s public schools.

However, creating a metric to include all these goals is the difficult part. Issues like the inclusion of different subjects, determining which tests will be used to gauge progress, and how to weigh low-performing and underprivileged students has caused turmoil design team meetings that have occasionally become contentious. Some school leaders are concerned that they could be unfairly graded and carry the stigma of low-performance into the future. Others worry that a lax accountability system will offer little differentiation and obscure the transparency that the program is aiming to create.

Ideally, the school accountability program would include:

  • Transparent grades that the public can easily digest. This means an A-F system that people can understand, rather than more cryptic terms. This will allow for an easy comparison across the state and across districts themselves. This will empower parents and help families find the right schools that fit their children best. While this will add an element of competition to the grading process, schools in danger of losing students thanks to low grades may find extra motivation for improvement.
  • Extra attention – potentially through additional grading weight – for the lowest performing students. Florida’s school grading system, considered to be a model for Wisconsin’s school accountability program (or at least a starting point) emphasized the performance of the students that needed the most help. They essentially double-counted the reading and math scores of the pupils in the bottom 25 percent of their schools when factoring them into a school’s grade. This ensured an additional focus on students that are struggling without abandoning the performance of a school’s top students.
  • Considerations to the amount of low-income students in a school. This would effectively curve the grading system to reward schools that are making progress with economically disadvantaged students. Wisconsin is a very unbalanced state when it comes to per capita income. The state’s 426 school districts often swing wildly from region to region when it comes to the economic backgrounds of students. Most often, areas with the highest concentrations of low-income pupils fare the worst when educational progress is measured.How to implement such a program has several moving parts. However, it’s clear that, in order to create comparisons that can be accurately gauged across the state, this is a necessary piece in ensuring fair, easily comparable grades from Milwaukee to Superior.
  • Value-added testing data to gauge student progress and a teacher’s value over the course of a school year. Tests taken in the fall and spring could measure how students are learning at each grade within an institution. Not only would this show Wisconsinites how its students are progressing, but also fall in line with the upcoming Educator Effectiveness program, which will grade a teacher’s performance in the classroom. It would give parents a better idea of just what an educator has added to their child’s education.The idea behind value-added testing is that students that enter a grade behind their peers won’t drag down their classroom’s average. Instead of an overall grade level, this testing will measure the growth of a student – so if a student that has fallen behind is motivated and taught well enough to meet the class average, he or she would produce a higher value-added score than a student that maintains that average. In short, it rewards progression and penalizes regression beyond just what WKCE averages tell us.
  • Proper standards for choice and charter schools. These schools should be held accountable as much as traditional public schools. The use of value-added testing and student data that tracks progress rather than benchmarks will ensure that these institutions are fairly graded and given more direct comparisons to the regular public schools in their regions.
  • Turnaround measures for failing schools. So now that we know how schools are performing, what do we do with them? Policy needs to be put in place that allows these schools to remove ineffective educators and administrators and bring in the talent they need to make strides towards a better education. This should align with the upcoming teacher evaluation systems in order to help these schools identify which individuals are bringing value to their classrooms. This intervention will put an onus on underperforming institutions and highlight the need for real reform when students aren’t learning in Wisconsin’s schools.
  • Data measurement systems that can sync with national and global rankings. This metric needs to be able to measure up from state to state and even across countries. Adopting Common Core of Data standards should help create a comparable and accurate system of measurement that allows us to compare Wisconsin’s schools with other across the country. Global comparisons are a bit trickier – but PISA or TIMSS testing, even on a limited basis, could provide valuable information when it comes to stacking Wisconsin’s public schools against those of worldwide leaders.
  • Revisable options to accommodate a new breed of teachers and students. The accountability system has to have a dedicated board to track results and address any shortcomings the program may have. This includes adopting new measures and self-reporting flaws and problems that may arise and negatively affect schools.

Ideally, the school accountability design team will create a program that presents clear and understandable data for parents and students so they can better understand the quality of their public schools. This needs to go beyond an insulated neighborhood level to work beyond districts, into other states, and even to other countries. Wisconsin’s educational outcomes have hit a disappointing era of limited growth and even regression. Increasing the public’s awareness of just how strong their neighborhood schools are will not only empower parents, but pressure underperforming institutions to improve.

It will be a large task to undertake, and the debates that have raged at design team meetings suggest that consensus outside of major topics has been hard to find. Still, the successful implementation of a program that accurately grades Wisconsin’s public schools and delivers more information to citizens will be powerful. It will give legitimacy to the state’s more successful schools and spur improvement in ones that are falling behind. However, this metric must be comprehensive and fair to ensure that grades are earned properly rather than just being the product of a potentially gamed system.

This is a major task for the design team, but with members ranging from almost every aspect of Wisconsin’s public education, it’s something that can be done. If these groups can work together, we’ll soon have a comprehensive system by which we can grade schools. If these groups can’t agree or exercise too much caution in their system, we may just end up with another set of standards that tell us little about Wisconsin’s classrooms – almost like the WKCE.

If the system is well constructed and implemented properly, students, teachers, parents, and Wisconsinites everywhere will benefit.

Democrats Turn Waste, Fraud and Abuse Commission into Partisan Issue

By James Wigderson
Special Guest Perspective for the MacIver Institute

Governor Scott Walker’s Waste, Fraud and Abuse Commission (WFAC) has issued their report and found a potential $445 million in savings for Wisconsin’s taxpayers annually. But as if to prove Weiss’ Law, Democrats in Madison are already complaining about the report.

Weiss’ Law was named after former New Berlin School Board member Matt Weiss who made the observation, “Nobody ever thanks you for not spending money.” Given the history of past efforts to root out waste and fraud in government including the Grace Commission and other commissions and reports, Weiss knew what he was talking about.

The Commission identified $82.6 million in local government savings and $373 million in state government savings annually. Hardly small change.

Some of the savings identified are already being implemented, such as changes in overtime for correctional officers. Those changes were made possible by the reforms in Act 10, which allowed the state to set the work rules outside of collective bargaining.

Other changes were spurred by the release of the interim report last year. For example, the Wisconsin Department of Health Services is examining how they will implement Patient Protection and Affordable Care Act program integrity provisions. They will also be contracting with private auditors to conduct audits of Medicaid suppliers on a contingency fee basis.

But what seems to have inspired the ire of the Democrats on the Commission, Democratic State Representative Mark Pocan and Democratic State Senator Chris Larson, was the emphasis by the commission to focus on the waste, fraud and abuse in programs for the needy.

In an interview with WTMJ-TV in Milwaukee, Larson said, “Where they go after people who are receiving food stamps and quest cards. They wouldn’t do the same thing for contracting or where money’s going to for the economic development corporation.”

But as the commission’s report makes clear, even as the amount of assistance spending has dramatically increased in Wisconsin, the amount spent on rooting out fraud has dramatically decreased. The report says, “At the same time benefit spending and recipient levels have risen, funding for recipient fraud prevention and detection has dropped.  In 2002, state spending on recipient fraud detection and program integrity efforts was $2.7 million. Between 2004 and 2009, funding to identify and 22 prevent recipient fraud decreased by 76 percent, from $2,340,000 to $561,892, while at the same time program eligibility expanded and new public assistance programs were created.”

As for why the Commission did look for savings in assistance programs, as Willie Sutton was famously misquoted, “That’s where the money is.” The Commission identified that increasing program integrity for assistance programs would result in $177,000,00 in savings.

Even Pocan and Larson recognized that’s where the money is in their alternative report. They suggested hiring more front line staff and administrative efficiency could result in $116.8 million to $177 million in savings each biennium.

One of the Commission’s recommendations for stopping fraud was the requirement of a photo id for aid recipients using Quest debit card for FoodShare. As the Commission says in the report, there have been a number of high profile cases of Quest card fraud, including the re-selling of Quest cards for cash. Requiring a photo id at the register (the same requirement if writing a check or purchasing decent cold medicine) would deter the reselling of Quest cards and their unauthorized use.

Pocan and Larson consider requiring a photo id to be an unnecessary burden on the state’s poor. Apparently the poor need not apply to assist Pocan’s and Larson’s fellow Democrats’ “Recall Processing Strike Force,” which also requires a photo id of participants.

Pocan and Larson also misstate in their report that the commission did not consider the question of using more in-house engineers at the Department of Transportation. “Unfortunately, these conversations were not part of the commission process.”

Actually, the question was dealt with quite extensively in section F on pages 50 – 57, including the Legislative Audit Bureau report that Pocan and Larson cite in their alternative report. The commission pointed out that the LAB report did not look at contractors vs. in-house engineers in the larger sense of continued pay and benefits even after a project was completed, only on the cost for a particular project to make the comparison. The Commission pointed out there was actually conflicting data and called for more study of the issue, even as the DOT is adding more in-house engineers to address the imbalance.

Perhaps that was because Pocan and Larson were in a hurry to try to score other partisan points. Seemingly forgetting the purpose of the commission, which is to ultimately reduce the burden on the taxpayers, as part of their alternative report on Waste, Fraud and Abuse, Pocan and Larson actually called for a tax increase on Wisconsin businesses. They complain that with the tax breaks given to businesses under Walker, “Wisconsin will loose (sic) $212 million in lost revenue.” Larson and Pocan call for raising taxes on Wisconsin businesses $46.4 million in the current biennium and $80 million in the biennium to follow.

But Pocan and Larson saw their alternative report as an opportunity to actually add back more waste in government spending. They call for the return of regional transit authorities that would raise taxes on local communities for passenger rail projects.

And if that was not enough, they also call on the state government to beg the federal government for the money for “high-speed rail.” While they see the $800 million in lost federal revenue, they are ignoring the long-term costs of the project and the likely additional burdens to the taxpayers.

California was a supposed beneficiary of Wisconsin’s refusal of federal stimulus “high-speed” rail money, but they are experiencing buyer’s remorse. California voters in 2008 approved selling $9.95 billion in bonds for the train’s costs. Recent polling indicates that the same referendum would not pass today. Costs are ballooning and the bonds aren’t selling.

Now the CEO of the California High-Speed Rail Authority, Roelof van Ark, and the Chairman of the Board, Tom Umberg, are stepping down as calls mount to abandon the wasteful project.

Judging from the alternative report, Pocan, who made headlines last year claiming the state was not in a fiscal crisis, seems bound and determined to send Wisconsin back into one. The alternative report is a reminder of the thinking that led to the state’s fiscal crisis before the reforms enacted by Governor Scott Walker and the legislature in 2011.

Wigderson on Earmarks in State Budget

By James Wigderson
Special Guest Perspective for the MacIver Institute

State Senator Rich Zipperer’s committee is again considering his bill to make budget “earmarks” transparent in the state budget process. Zipperer’s bill would not end budget earmarks, but legislators would have to defend the earmarks for their districts in the budget.

Earmarks are budget provisions for a specific beneficiary that would not be generally applicable, whether it’s expenditure or a benefit in the state tax code. Earmarks are often included in government budgets to win the support of legislators for passage of the budget bill.

Zipperer’s bill, SB 114, would end what he called “airdrops.” These are provisions inserted by the conference committee after the budget bill’s passage by the Joint Finance Committee and both houses of the legislature. This would stop last minute deals outside of the public eye. The conference committee would still have the ability to reduce the amount for a particular earmark.

The bill would also change the rules in the Joint Finance Committee regarding earmarks. Instead of requiring a majority to take an earmark provision out, the bill would require a majority vote to keep an earmark in. This would be especially important in those years when control of the legislature is split and there is equal representation of both parties.

The most important part of Zipperer’s bill is a requirement that the legislative fiscal bureau would create an “earmark transparency report.” The report would contain a list of all earmarks in the budget bill and the cost of each earmark. The bill would also identify the beneficiary of each earmark, including the Assembly and Senate District of the earmark beneficiary.

Both parties are guilty of including earmarks in the budget process. Zipperer says that the last state budget was better than most.  “It certainly wasn’t at the level of the previous budget.”

But there were still earmarks. For example, “There was $25,000 for Copper Falls with no explanation.” Zipperer explained, “It was not enough to make me oppose the budget,” but it showed that earmarks continued even under Republican control.

In the last budget under Governor Jim Doyle, perhaps the most infamous example of an earmark was $46,000 for recycling containers for Wrightstown, a town of 2000 people.

Other examples of earmarks in the last budget under Doyle include $5 million for the Bradley Center (part of which was spent on a new scoreboard) and $500,000 for the Oshkosh Opera House.

The argument for earmarks is that it allows the legislature to specify and set priorities for government spending. Zipperer says the higher the level of government, the more potential harm there is for earmarks.  Earmarks distort the real priorities for spending. They also mean that the state is making a spending decision that should have been made locally.

However, “Even if you support earmarks, you can still support this bill,” Zipperer said. After all, the bill does not stop earmarks, it only makes members of the legislature have to defend them.

Earmark transparency has been an interest of Zipperer’s since he was first elected to the Assembly and saw his first budget process. He says what makes this year’s bill more likely to pass than his past attempts is that the bill has been simplified to identifying the earmarks.  That way the legislature and the public will know about them before there is a vote on the budget.

Zipperer also claims bipartisan support for the bill this time. Senator Tim Carpenter of Milwaukee is a co-sponsor of the bill.

The bill has been through a public hearing and will soon be getting a committee vote. Despite the recalls that threaten to overshadow any work the legislature does, Zipperer is optimistic there will be enough floor time for his bill to pass.

If it passes, voters can expect to hear more about state grants for soybean crushers and climate change classrooms. Not because there are more or less earmarks like them, but because the legislative fiscal bureau will be required to list them before the legislature votes to approve them.

$3 Billion in Savings Eyed

MacIver News Service | January 10, 2012

[Madison, Wisc…] Governor Walker hopes the initiatives identified by a state panel will save taxpayers nearly three billion dollars over the next decade.

A year after it was first created by an executive order, the Governor’s Commission on Waste Fraud and Abuse released their final report Wednesday.

“Based on months of review and discussion it is clear that the state’s budgeting and financial systems are antiquated,” wrote Commission Chairperson Craig Rakowski. “To eliminate waste, fraud and abuse there needs to be a clear understanding on how budgeted money is actually being spent. In other words, we need to do a much better job following the cash.”

Overall the Commission believes its recommendations can reduce spending by local units of government by $82.6 million and state government by $373 million for a total annual savings to taxpayers of $445 million.

In addition to specific recommendations, the report outlines five general, big picture areas of concern:

  1. Wisconsin’s accounting and financial information systems need to be brought up to date. According to DOA personnel the accounting system currently being used by them is almost 20 years old. There obviously has been a significant change in technology during those 20 years, technology that Wisconsin is not taking advantage of. It is impossible to make sound financial decisions without timely, reliable and accurate information. Many times these systems have already been developed and implemented in other states and would be available to us.
  2. The traditional method of budgeting being performed needs to be challenged. While zero based budgeting appears to be extremely hard and time consuming some modified form needs to be put in place. We cannot continue to roll forward previous budgets without accepting that there is cushion and waste built into them. The fact that agencies have been required to lapse certain percentages of their budgets and that many times the same items are being lapsed for the second or third time shows that this cushion exists.
  3. One of the report recommendations is to make a certain dollar amount of lapsing permanent. I think we should take this a step further and say that if something is lapsed more than once it should be removed from the budget altogether. Why, for instance, is an agency that has relocated to reduce lease cost by $500,000 not required to reduce their budget by that same $500,000 but instead allowed to use it towards their lapses budget after budget?
  4. The State of Wisconsin should be doing business on a GAAP basis. In my opinion the modified cash basis currently in place allows for cutoff issues and could be used to circumvent the State’s balanced budget requirement.
  5. Once information systems are put in place which provides timely accurate financial information, agency’s budgets and cash flow should be tracked on a monthly or at least a quarterly basis. This would allow expenditures in the last quarter of the year to be reviewed for appropriateness. Any possible “using up” of the remaining budget could easily be identified with this type of information.

“Many times questions asked by members of the commission remained unanswered because we were told that information was just not available,” Rakowski wrote in the final report. “This needs to be remedied.”

Rakowski wrote that based on conversations the commission had with individuals familiar with the state’s public assistance programs, waste fraud and abuse in those programs range from two to 15 percent of budgeted funds.

“The most common opinion is around 10%,” Rakowski. “This is unacceptable as it is keeping assistance from the individuals in our society that really need it.”

From the report:

Public comments and suggestions focused on Wisconsin’s public assistance programs more than any other topic discussed by the Commission. Wisconsin has well over 1 million beneficiaries and Medicaid expenditures alone are expected to eclipse $7 billion this fiscal year.

What the Commission found was an explosion in public assistance spending and program expansions over the last decade with no corresponding investment in program integrity. Actually, program integrity spending went down, reduced by 76% at the same time FoodShare enrollment more than doubled and Medicaid enrollment grew by 50%.

In part, because of the discussions of this Commission the Department of Health Services has created an Office of Inspector General and has invested in cracking down on fraud in public assistance programs. Results have already been seen. Benefits saved due to fraud in FoodShare alone climbed 46% in October and payments recouped 80% compared to the first month of 2011.

As we previously reported,  Deputy Administrator Andrea Reid of the UI Division of the Department of Workforce development told the Commission last year that unemployment benefit fraud in Wisconsin has skyrocketed over the past few years.  Between 2008 and 2010, the amount of overpayments shot up from $21 million to $78 million. The number of cases increased 130 percent. The amount of overpayments over $1000 that were intentionally concealed went from $9.25 million in 2007 to $40.5 million in 2010, a 338 percent increase.

Even with the cases of fraud increasing, few people have been successfully prosecuted for it.  In order to face punitive action, a person must have fraudulently received more than $5000 in benefits and committed 5 acts of concealment. In 2010, 2,169 people met those requirements, yet only 31 of them were prosecuted. That resulted in 11 convictions.

In 2011, the Wisconsin legislature passed a one-week waiting period before would-be recipients can receive UI benefits. This move, criticized my many legislative opponents as cruel, is expected to save the state up to $50 million a year as the extra time will allow the state to investigate the validity of claims.

Reid told the commission in August that the state’s ability to root out fraud is limited, in part, because the data processing equipment was more than 25 years old.

“This application is inefficient, does not meet our business requirements, and can not be modified quickly enough to respond to program modifications or law changes,” she said.

In their final report the Commission found that DWD is working to correct the above issues and upgrading its information technology which is expected to improve its efficiency.

Administration officials also noted that the Commission’s work has also led other state agencies to already begin implementing some cost saving measures because of the discussions they had during 2011.

  • The Department of Health Services has created an Office of Inspector General and has invested in cracking down on fraud in public assistance programs. Results have already been seen. Benefits saved due to fraud in FoodShare alone climbed 46% in October and payments recouped 80% compared to the first month of 2011.
  • State employee compensation plans were modified in an effort to reduce the amount of unnecessary and costly overtime.
  • Wisconsin Department of Veterans Affairs (WDVA) found that they could accommodate their agency staff in office space soon to be vacated by the former Wisconsin Department of Commerce, which is estimated to save WDVA between $300,000 and $400,000 annually.

“The recommendations by the Commission will help state government operate more efficiently and effectively,” said Governor Walker.  “Moving forward I will work with members of both political parties to implement the remaining recommendations made by the commission.”

Read the entire report, here.

ABC’s Debate Series Topic: There’s Too Much Government in My Life

Earlier this month Wisconsin’s First District Congressman and House Budget Committee Chairman Paul Ryan joined columnist George Will for an hour-long debate with Rep. Barney Frank and former Labor Secretary Robert Reich. The four took part in the inaugural event of the ‘Great American Debate Series’ on ABC’s This Week program, and focused on the topic: “There is Too Much Government in My Life”

See the video.

Congressman Ryan’s opening remarks:

Is there too much government in our lives? Yes. Ask most people and they will agree. It’s no coincidence that government spending has hit record levels while people’s trust in government has hit record lows. So the longer answer, why is this, is pretty simple.

Too much government inevitably leads to bad government. When government grows too much and extends beyond its limits, it usually does things poorly. Our founders put limits on government because they knew the limits of government.

The left usually likes to advance what I would call a strawman argument or a false choice, that those of us who believe in the constitutional principles of limited government somehow favor sort of a Hobbsian state of nature, or a social Darwinism, where people are left to fend for themselves completely, only to be exploited by the few who are powerful, and that the only alternative to this cruel society is a vision of a society of total security and total outcome, results guaranteed by government.

Fortunately, this is not the case. Those of us who believe in limited government also believe in effective government. A good and popular government is one that respects its limits. Is one that fulfills its goals and its functions well.

But look at where we are today. Look at our economy, look at our debt. Crony capitalism where government is picking winners and losers. Where you have big government and big business exchanging favors with one another while the entrepreneur and the small-business person is left struggling to survive.

The last few years have shown us that a truly effective government is impossible without limits. A government that focuses on equalizing the results of our lives is one that does damage to the American commitment of equal opportunity. If we reclaim our founding timeless principles, we’ll have a government that we have faith in, that we are proud of, and the question surrounding the size and the proper size of government will take care of itself.

Read the entire transcript.

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