WHY DID UW DECEIVE LEGISLATURE, STUDENTS AND PARENTS?

‘CPA Caucus’ found UW system doom and gloom didn’t add up

http://watchdog.org/83720/cpa-caucus-found-uw-system-doom-and-gloom-didnt-add-up/

Wisconsin Reporter – M. D. Kittle – 5/8/2013

They’re known as the “CPA Caucus,” and this gang of  number-crunching lawmakers was instrumental in uncovering the University of Wisconsin System’s arguably heftier-than-expected reserve.
The Republican lawmakers – Reps. Chris Kapenga of Delafield, John Klenke of Green Bay, Dale Kooyenga of Brookfield and Howard Marklein of Spring Green – all certified public accountants at their “day jobs,” found something just didn’t add up in the system’s financials.

“We read the comprehensive financial report that details the system’s finances, and everything we were hearing was that the system was struggling,” Kooyenga told Wisconsin Reporter. “We looked at the financials and found that was not the case. “
Last month, a memo by the Legislative Fiscal Bureau revealed the system had cash reserves of $648 million at the end of the last fiscal year.

The nonpartisan fiscal bureau detailed a $1.05 billion balance in the UW System reserve accounts. That included the system’s tuition balance of $414.1 million, compared to a tuition balance of $212.8 million on June 30, 2009.

UW System President Kevin Reilly said just $207 million in the system’s cash balances were uncommitted or unrestricted.

The real issue, the lawmaker said, is the lack of transparency and the politicking the system engaged in during the previous state budget cycle. System officials warned Wisconsin’s public colleges and universities would struggle mightily under the weight of a $250 million cut in the 2011-13 budget, and $66 million in lapses subsequently added to the austerity measure. The Republican-led budget did grant the system the authority to hike tuition by 5.5 percent over the past two years to help offset the losses, an allowance the system took without complaint.
“The disturbing part is that they never disclosed (the extent of the reserve) at any time during the request,” Marklein said.

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