ACCOMPLISHMENTS OF THE ExEcUTIvE BRANCH


   Both the Fixed and Variable Retirement Funds performed well relative to
their objectives.
The objective for the Fixed Retirement Fund is to exceed wage rate growth
by 1-1/2% - 2-1/2%
per year over long periods of time. This objective is consistent with recently
revised retirement
plan actuarial assumptions. National wage rate growth is selected rather
than the plan-partici-
pant wage growth experience because national measures are believed to be
more representative
of long-term wage trends. Over the 11-year period ending December 1986, the
fixed fund income
credit growth averaged 9.6% compared with an average wage rate growth of
6.9% and inflation
growth of 5.9%.
   For the Variable Retirement Fund, the objective is to equal or exceed
the S&P-500 Index (with
income added). The S&P-500 Index is a broad market measure of intermediate
and large com-
pany stocks. It is widely regarded as a good measure of average results for
larger common stock
funds. Over the I11-year period ending December 31, 1986, the variable fund
income credit
growth averaged 17.5% compared with 14.6% for the S&P-500 Index.

   The PERSONNEL BOARD held extensive reviews of, and in October 1986 gave
final approval
to, changes in the Administrative Code, Rules of the Administrator, the Division
of Merit Re-
cruitment and Selection.
   The board appointed the chairperson of the Personnel Commission.
   The board conducted an extensive recruitment and evaluation of applicants
for the position of
personnel commissioner of the State Personnel Commission, and presented a
list of names to the
Governor for his review and final appointment.

   Faced with an ever-increasing delinquent tax balance, the Income, Sales,
Inheritance and Ex-
cise Division of the DEPARTMENT OF REVENUE developed a comprehensive legislative
pro-
gram to increase taxpayer compliance and improve collections. Included in
this program are
increased penalties for late filing of returns, provision for setoff of amounts
owed to vendors who
do business with the state and who owe delinquent taxes, ability to refuse
to renew or to issue a
seller's permit if the permittee or applicant owes any type of delinquent
tax, and enactment of a
levy law which will aid in the recovery of property owned by delinquent taxpayers.
   In addition, the amnesty program, which took place during a 10-week period
in the latter half
of 1985, encouraged delinquent taxpayers, through the waiver of most penalties
and delinquent
interest, to pay their accounts and to file missing returns or to declare
additional amounts subject
to tax.
  The Division of Research and Analysis completed a comprehensive review
of the individual
income tax, based on equity, economic development, efficiency and simplification
criteria. This
review formed the basis of a major income tax reduction and reform plan that
was introduced
and adopted in the 1985-87 Budget Bill.
  In collaboration with the Management Research Center of UW-Milwaukee, the
division also
completed a joint study of the relationship between the municipal and county
tax base equalizing
aid formula (aidable revenues) and economic development. Other special division
research pro-
jects include: the Telecommunications Advisory Committee, created by the
Secretary to analyze
the utility tax implications of the AT&T divestiture, and a new sample
of the Farmland Preserva-
tion Credit program.
  The Division of State and Local Finance designed and implemented the full
disclosure tax bill
that was ordered by the 1985 Legislature. Several changes were also made
in the property tax
area, especially in the area of determining agricultural land values.

  The OFFICE OF THE SECRETARY OF STATE improved the breadth and timeliness
of the
services provided to Wisconsin's business, legal and financial communities
through legislative,
technological, operational, and new program initiatives.
  As a result of 1985 Wisconsin Act 338, 2 new Corporations Division services
were provided
beginning December 1, 1986: an expedited service program which permits documents
and certi-
fied copy requests to receive same-day or next-day attention; and a telephone
name reservation
program which allows faster, more convenient reservation of corporate and
limited partnership
names. The act also approved critically needed staffing increases to partially
offset the substan-
tial and continuing workload increases faced by the agency and enable more
timely service
delivery.


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