Conservatively Speaking
State Senator Mary Lazich (R-New Berlin) represents parts of four counties: Milwaukee, Waukesha, Racine, and Walworth. Her Senate District 28 includes New Berlin, Franklin, Greendale, Hales Corners, Muskego, Waterford, Big Bend and parts of Greenfield, East Troy, and Mukwonago. Senator Lazich has been in the Legislature for more than a decade. She considers herself a tireless crusader for lower taxes, reduced spending and smaller government.
State Fair Park Audit released
By Mary Lazich
Friday, Jul 18 2008, 10:11 AM
The Legislative Audit Bureau (LAB) has released its annual audit of the financial statements for the Wisconsin State Fair Park for fiscal year 2006-07. Here are the audit’s key findings.
For the first time since fiscal year 1998-99, State Fair Park annual revenue exceeded expenditures, by $1.3 million. Race track related expenditures declined by $3.8 million. As of June 30, 2007, State Fair Park’s accumulated cash deficit was $9.9 million. The deficit is a concern because less funding is available for other state programs and the deficit prohibits State Fair Park income from turning into investments.
State Fair Park made a license agreement in December 2005 with Milwaukee Mile Holdings to manage racing events at the Fair Park. The agreement was for 18 years and included a license fee of $246,000 the first year increasing to $1.8 million annually thereafter. There have been some amendments to the agreement since, the latest coming in a renegotiation in February of this year that reduced the annual license fee to $1 million beginning in 2008.
The original agreement December 2005 agreement was intended to have the license fee be sufficient to cover annual debt service at State Fair Park. Under the new agreement, the LAB estimates that, “State Fair Park’s financial responsibility for the Milwaukee Mile will increase to nearly $1.2 million in 2008,” meaning more revenue sources must be found. Some possibilities that had been considered review are the development of 5.75 acres at State Fair Park adjacent to I-94 and the construction of a billboard on the grounds. Because of I-94 construction, those options have been postponed.
The audit also examined concerns pertaining to livestock contests at the Wisconsin State Fair. The concerns include the role of the Agriculture Director consulting with advisory committees in establishing contest rules for junior division livestock shows, the responsibility of the Agriculture Director in choosing junior division judges, and changes in the payout procedures for the premier livestock competition of the State Fair, the Governor’s Blue Ribbon Livestock Auction.
The LAB also reports, “Several conflict of interest allegations have also been raised related to the Agriculture Director’s responsibilities to State Fair Park and his participation in an outside business that buys and sells show cattle. For example, the Agriculture Director maintained a financial interest in animals that were exhibited and won championships at the 2005 and 2006 state fairs. State Fair Park officials were aware of this potential conflict but did not reassign the Agriculture Director’s responsibilities because he was not a direct participant in the competitions and was not the sole person responsible for selecting judges. The Agriculture Director has indicated he is transitioning away from his outside business, but we found that he continued to participate as recently as March 2008.”
Here is the way the Milwaukee Journal/Sentinel reported the issue.
The LAB recommends the State Fair Park Board consult with the state’s Government Accountability Board to examine if the Agriculture Director’s outside business interests constitute a conflict of interest with his duties at the State Fair Park.
The LAB also recommends the State Fair Park get more financial information from the company managing racing activities, report back to the Joint Legislative Audit Committee by March 31, 2009 on both the revenue shortfall in the new license agreement with Milwaukee Mile Holdings and the cash deficit, reevaluate the selection of judges for junior livestock competitions, and that the State Fair Park Board’s Agriculture Committee approves competition rules for livestock shows annually.
Here is the entire LAB audit report.
I commend the LAB for their consistently excellent reviews.
