Progressive Thinking

This week, Senator Kathleen Vinehout writes about the award winning work of Wisconsin's nonpartisan Legislative Audit Bureau as it completes 50 years of exceptional work serving as “the steward of the people’s money.”

MADISON - “Fix the broken programs, get rid of the ones that don’t work and fund those that are working.” There’s not a state candidate around that would disagree with this statement.

Yet there are some in the Legislature that would eliminate the very source of information on which programs are a waste of taxpayer dollars and where the broken programs need fixing.

For fifty years, auditors at the nonpartisan Legislative Audit Bureau (LAB) have assisted legislators and the people of Wisconsin in answering questions about dollars spent. Questions like, “Did we get our money’s worth out of that program?”

Skilled public sector auditors perform financial audits on various funds in state government, like the lottery or the Patient’s Compensation Fund. They examine federal dollars to assure the state is compliant with federal law in the annual Single Audit. Auditors also review state operations in the LAB review of the Comprehensive Annual Financial Audit released near the end of the year.

The National State Auditors Association recently awarded the highest rating possible to the LAB’s financial audit division. Very experienced auditors put the LAB’s programs and policies through a rigorous review. These examinations are conducted every three years. Wisconsin’s LAB has consistently received the highest ratings possible.

But financial audits are only half of the award winning work done by the LAB. Program evaluations, answering questions like did this program meet its goals, is the other half of the work of the Audit Bureau.

While the work of the financial division seldom makes headlines, the program evaluation auditors often find their work under the spotlight. Recently a GOP Assembly proposal called for eliminating the LAB. Capitol rumors said elimination was in retaliation for the embarrassing failures made public in three audits over the past three years of the Wisconsin Economic Development Corporation (WEDC).

But far from cause for elimination of the nonpartisan watchdog, the program auditors of the Legislative Audit Bureau were rewarded with national recognition for their work on WEDC and similar critically important program audits.

The National Legislative Program Evaluation Society recognized the work of the LAB with its distinguished Certificate of Impact for the 2013 FoodShare audit; the 2014 Wisconsin Economic Development Corporation audit; and the 2015 Supervised Release Placement and Expenditure audit. The recent national accolades should reassure voters and lawmakers of the LAB’s stellar work.

Too often lawmakers say they want to know which programs work and which do not, but their actions tell us otherwise. Recent actions such as cutting funding for an outside evaluation for the Drug Court (Treatment Alternative Diversion) program. Or by budget action creating four or five alternative tests for students in publically funded private school programs, making accurate comparisons between public and private school student achievement extremely difficult.

Facts matter. Facts lead us to conclusions that might are may not always be popular politically. That’s exactly why we need the nonpartisan Legislative Audit Bureau. If we truly care about creating a well-run state government no one should shy away from the facts nonpartisan auditors present to us – regardless of political implications.

This summer the Beloit Daily News editorialized about the importance of independent agencies in state government. The editorial lauded the LAB saying the agency “has earned a strong reputation for impartiality and independence from partisan political influence.”

Nonpartisan agencies like the Audit Bureau, the Fiscal Bureau and the Government Accountability Board play a key role in a well-functioning state government. The Beloit Daily News warns us:

“TAXPAYERS, TAKE NOTE. Agencies like the GAB, the Audit Bureau and the Fiscal Bureau exist under a mandate to serve truth, not politics. That’s in the best interest of the people, if not the politicians.

“Understandably, the powerful object to any outfit they can’t control. But government watchdogs must not be muzzled and broken to the partisan leash.”

Instead, let us laud the work of our nonpartisan agencies. Join me in congratulating the LAB on excellent accomplishments and national recognition.

And wish the agency another 50 years of exceptional work serving as “the steward of the people’s money.”

This week Senator Vinehout writes about a couple of the latest scams reported by the DATCP Division of Consumer Protection.  People who receive suspicious phone calls or emails should report them to Consumer Protection Investigators.

MADISON - “I got a call saying the IRS was taking me to court, but I filed everything on time. What do I do?” Linda asked. We both agreed the phone call sounded fishy, so I reached out to the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) to learn more.

The Consumer Protection experts explained there has been an explosion in the number of IRS imposters contacting people and demanding their financial information. Tax identity theft can lead to fraudulent tax filings or use of the victim’s Social Security number.

IRS Commissioner John Koskinen stated the first contact with the IRS would be official correspondence sent through the mail. Consumer Protection officials advise never to respond to an email or phone call requesting your Social Security number or other financial information.

Every year I am reminded that scammers and thieves prey on Wisconsinites and they become more sophisticated in their tactics. It is important for everyone to know what to watch for and where to get help.

According to DATCP officials, consumer complaint statistics have been on the rise. They report that scammers and thieves have stepped up efforts to steal people’s money or identity. Sandy Chalmers, Division Administrator of Trade and Consumer Protection, noted that many citizens report, “receiving fraudulent calls offering ‘Credit Card Services’, Microsoft tech support and medical equipment.”

One of the latest scams reported by the Consumer Protection Bureau relates to people receiving emails from the “State Court”. The message falsely claims the person must appear in court on a specific date with documents related to “the case.” DATCP officials warn the email and attachments should be deleted because they contain malicious software that can infect your computer with a virus.

This scam has been reported nationwide. The general rule to know is that Wisconsin courts will not send you email unless you are participating in an electronically filed case or consent to receive electronic court notifications.

Consumer Protection officials noted the other most often reported scam is offers that sound too good to be true. Prize scams offer “official” entry numbers, certificates, and envelopes al or like telegrams to lure you into opening the envelope and returning what is inside. Internet scams offer the promise of quick cash or investment schemes.

“You can be sure you won't win any prize with a brand name, cash, or a government bond. Prizes such as jewelry and watches are junk, vacations are actually vacation certificates hardly worth the paper they're printed on, and shopping sprees amount to coupons that are good only when making purchases,” warns the Senior Alert & Advice page on the Consumer Protection website.

They also warn about the late night calls saying your debit card needs to be re-activated and asks that the card number be entered. The other type of call to be wary of is one that offers lower interest rates on mortgages or credit cards. The caller asks for a credit card number so the lower rate can be “processed.”

The bottom line on all of these types of calls is that the caller is trying to lure you into giving away personal information. The rule of thumb is if someone calls asking for your credit card or bank information over the phone, hang up and report the scam.

A few other rules the Consumer Protection folks reminded me to pass on is do not pay a handling fee or provide a credit card number or information about your savings or checking account to win an award. Also, do not wire a payment or send a check through an express courier service without checking references and contacting the Office of Consumer Protection.

Finally, if you do lose money to a fraudulent telemarketer – REPORT IT! Many people are embarrassed and do not report. That allows the swindler to victimize other people in our community. Wisconsin law has serious penalties for those who engage in such illegal behavior. The best way to protect yourself and others is to be informed and to report any suspicious phone calls or email messages. You can call 800-422-7128 to speak with a consumer protection investigator or file a complaint on-line at https://mydatcp.wi.gov/Complaints.

At a recent Joint Audit Committee hearing, legislators asked WEDC officials if they would implement the latest LAB recommendations to improve Governor Walker’s flagship jobs creation agency. Those questions were not answered in a way that indicated WEDC would take the clearest path to improvement and building public confidence.

MADISON - “Are you going to follow the recommendations in the audit?” I asked the Board Chair of the Wisconsin Economic Development Corporation (WEDC). He crossed his arms, sat back and smiled at me.

A smile that, to me, said I was annoying him.

The clearest path to better outcomes at Governor Walker’s flagship jobs creation agency is to follow the recommendations of the nonpartisan Legislative Audit Bureau (LAB).

However, during a recent and very long public hearing investigating the troubled agency, I repeatedly heard obfuscation, deception and disdain for the law.

Legislators serving on the Joint Audit Committee heard familiar problems: grants and loans given without legal or financial vetting; job creation promises never verified by WEDC officials; inadequate follow-up on companies lacking adequate reports.

The third LAB audit report in three years documents that WEDC has made progress. A financial system is in place (at one time the organization lacked even an accounting system). Credit risk managers review files – some of the time. Contracts are based on requirements in the law – part of the time. Plenty of new policies exist – if only staff would consistently follow these policies.

Dan Ariens serves as the Chair of the WEDC board. It’s a new position to Mr. Ariens. He’s been on the board since the creation of WEDC, but this summer he took over as Board Chair when Governor Walker resigned that position. Mr. Ariens runs a business that manufactures snow blowers and lawn tractors. In a seemingly incestuous tangle, he also serves as Board Chair of Wisconsin Manufacturers and Commerce (WMC); one of the largest lobbying groups and ranks high on the list of political spending organizations.

Maybe that is why some of my colleagues were hesitant to pressure WEDC officials into a commitment to follow the law. Not so for Senator Alberta Darling.

During questioning, I pointed to the statute book – Wisconsin’s state laws – and identified page after page of laws WEDC did not follow. I asked officials how people could be confident their tax dollars were well spent when WEDC staff failed to verify whether jobs were actually created. Senator Darling followed my questioning adding, “We need to know the answers to Senator Vinehout’s questions.”

Instead lawmakers heard explanations like “we need to make the organization as fluid as possible so we’re not handcuffed by policies.” Never mind that for this quasi-public entity, “policies” serve in place of administrative rules and are designed to carry out the law.

In response to questions by Representative Berceau about contracts that did not follow the law, the Chief Legal Counsel answered, “We are not so arrogant to think the law doesn’t apply to us.” Their actions tell us otherwise.

The recent Audit Committee public hearing provided WEDC’s top brass an opportunity to turn the page. With a sincere apology, they could begin to renew the public’s faith in the organization; address poor decisions head on, improve legislative relations and gain back good will.

Instead, the CEO didn’t even attend the hearing despite the meeting being changed to accommodate his schedule. The Board Chair appeared aloof; his answers were often cagey. The Chief Legal Counsel teetered between whitewashing the truth and denying recent violations by claiming problems were in the past.

The Harvard Business Review might be somewhere in WEDC’s office. After all, the agency touts its ability to operate like a business. I’d suggest the WEDC folks take a look at the most recent issue.

Professors Schweitzer, Brooks and Galinsky offer practical guidelines for when top leadership should apologize. “The bottom line for serious transgressions: Senior leadership must immediately express candor, remorse and a commitment to change in a high profile setting – and make it sincere.”

The recent Audit Committee hearing provided a perfect opportunity for WEDC to come clean and start over. Instead, without a sincere apology, they risk more bad news and yet another scathing audit.

The economic development community wants to turn the page on WEDC’s problems. A simple, unqualified “Yes” to my question about following the LAB recommendations would be a great first step. But without a clear commitment to change and real remorse for actions, WEDC’s redemption appears doubtful.

Sitting by the window and waiting. Elderly and disabled stranded when company did not deliver rides.

MADISON - “Just how many ‘no shows’ are acceptable?” I asked Medicaid Director Kevin Moore at a recent Audit Committee Hearing. “Is 4,154 people left without a ride too many?”

Wisconsin needs a different system for getting seriously ill elderly and disabled to their medical appointments. A recent audit showed poor services provided by a private company contracted to give rides to some elderly and disabled.

A Rock County resident arranged for a wheelchair van. But the vehicle sent did not have a wheelchair lift. The wheelchair bound person missed their appointment. A developmentally disabled Dane County person walked home in a thunderstorm after being stranded at the clinic. A paralyzed Richland County resident could not get a ride to a surgery appointment.

These are just a few of the cases from a recent audit conducted by the nonpartisan Legislative Audit Bureau. Auditors wrote, “from August 2013 through June 2014, we found 4,154 instances in which transportation providers did not arrive to provide a scheduled trip and 55,320 instances in which they arrived more than 15 minutes late to take recipients to their appointments.”

The State Medicaid Director has a contract with a private St. Louis-based firm, Medical Transportation Management (MTM), to provide non-emergency medical transportation to almost 70,000 people in Wisconsin. MTM is a “broker” which organizes rides to pick up and deliver Medicaid recipients to medical appointments.

I have received many complaints from families, patients and local transportation companies. One disabled resident in Black River Falls told me about traveling in a van with no heater on a cold Wisconsin winter day. An Eau Claire woman waited more than an hour for a ride with her sick daughter. When constituents tried to complain they ended up getting the run-around.

Medical transportation companies – hired by MTM – were so discouraged that over half of them responding to an Audit Bureau survey said they were dissatisfied or strongly dissatisfied with MTM. Scheduling was one area of concern.

The audit reported on many problems, including examples of poor management. Auditors found that MTM sent faxes to transportation companies requesting a ride after the trip was supposed to be provided. They then charged the company with failing to provide the trip.

The disastrous treatment of Wisconsin transportation companies has led to a huge exodus of companies willing to provide rides for medical visits to Medicaid recipients. Prior to the brokerage system, Janet Zander testified, “Wisconsin had approximately 200 specialized medical vehicle (SMV) providers. Today, there are only about 80 providers operating in the state.” Especially hard hit are rural areas.

Mr. Moore, the Medicaid Director, testified he accepted the auditors’ recommendations and was amending the contract with MTM. “We know there are challenges that we didn’t know before the audit,” he told the committee. “We’ve taken aggressive action.” He also encouraged people to let him know if things were not working. “If we don’t know what’s wrong, we can’t fix it. If they [riders] don’t complain, we won’t know. Please call us.”

Many advocates testified that the system was not set up to succeed. “The broker is paid for all rides, regardless of whether the ride shows up or gets a rider to their destination late,” said one advocate. This system creates a “perverse incentive” that encourages MTM to skimp on providing services. When they skimp, others sometimes pick up the cost. Molly Nolte from Rock County told of services so poor the county dipped into its own limited funds to provide rides.

Ms. Zander and many other advocates told committee members that without an adequate transportation system for the elderly and disabled to get to medical appointment, more folks would end up sicker, in the hospital, with the state spending more.

“We need a complete overhaul of this system,” testified Representative Peter Barca who spearheaded efforts to approve the audit. He listed several ways in which the current system rewards MTM to discourage riders and pay for fewer rides. “We need to look at a different type of contract.”

I agree. Even majority party members of the Joint Finance Committee agree. They added a pilot study to explore a new system into the state budget. The governor vetoed the idea.

This week Sen. Kathleen Vinehout writes about the lack of K-12 Teachers in Wisconsin.

PLUM CITY, WI - “Please sound the alarm,” Superintendent Mary Baier wrote to me. “We are not able to find people to fill positions in Wisconsin.” She needed a special education teacher and only one applicant had applied to her rural Plum City district.

When the school bells ring across Wisconsin, parents expect classrooms to be filled with qualified teachers. But a dramatic decline in education majors at university-based programs and an exodus of both newly minted and experienced teachers have left Wisconsin parents asking, “Who will teach our children?”

The “impending crisis” is here.

Schools are scrambling to find qualified teachers. For example, less than a month before school started, News 8 WKBT reported the La Crosse district needed to fill 23 positions.

Districts have done more with less for years. Existing teachers covered more classes and received cross training. Districts asked current teachers to go back to school and obtain certification in different subjects. Local schools already share many teachers, guidance counselors and other staff. Teachers move between schools, between districts and even across state lines during the course of their workweek.

Some districts use special “waivers,” or permission to bend the rules on teacher certification, allowing a district to place an unqualified teacher in a position as long as that teacher seeks proper certification.

But the teacher shortage is growing and it affects urban, suburban and rural schools.

Christine Hedstrom works in Human Resources for the Waukesha School District. She told the Milwaukee Journal Sentinel, “You could technically start a school year without an administrator in place, but you need to have a teacher in the classroom.”

But rural schools are particularly hard hit.

Rural schools often have fewer options and already greatly diminished choices for students. They’ve already combined, shared, downsized and cross-trained. Having a teacher in the classroom may not even be possible in some local rural classrooms.

A rural western Wisconsin district board member told me, “We are starting the school year with two positions unfilled”- one of the positions was a Spanish language teacher. “I guess we’ll have to use some type of video/distance learning option,” the board member told me. “But that’s not a good way for students to learn a language.” Spanish is the only foreign language available to students in this rural district.

When I asked folks why we had a teacher shortage, I heard several comments over and over. “Fewer students going into teaching.” “New graduates not staying in Wisconsin.” “More teachers retiring or leaving the profession.” “Teaching is no longer a valued profession.”

The Wisconsin Budget Project reported over the last eight years the number of teachers in Wisconsin public schools fell by nearly 3,000 even as school enrollment increased.

They also reported on a troubling decline in experienced teachers. "In the 2013-14 school year, teaching staff of 39% of school districts had an average of 15 or more years of experience. That share has fallen dramatically since the 2004-05 school year, when 58% of school districts has a teaching staff with an average of 15 or more years or more of experience.”

Not surprisingly, fewer students are entering the education profession. Statistics from the United States Department of Education show a dramatic drop in the number of university students learning to be teachers in Wisconsin. In 2011, 12,624 education majors were enrolled in all types of university-based programs. By 2014, this number had dropped by almost a quarter to 9,563 education majors.

Of course, in 2011, we saw the passage of anti-public employee legislation in Act 10 and the largest cut to public education in Wisconsin’s history. It’s not hard to imagine why a college student might decide to change majors following the words and actions of many elected leaders.

The future troubles many education professionals with whom I spoke. Just who will teach the children born in 2020?

“As we move forward, my largest concern is the quality of teachers. We have become a state that doesn’t value quality education. Why would anyone go into teaching?” Superintendent Baier asked.

I remind my colleagues who voted for Act 10 and the budgets that created this problem just what my mother told me eons ago as I answered that first school bell.

Actions have consequences.