To : The Council
From : The Mayor
Date : 14 May 2008
After receiving the latest audit report, it has been determined we have a surplus of $192,719. I am proposing the following expenditures for your consideration and approval.
EQUIPMENT REPLACEMENT FUND: Per city policy, 50 percent of the surplus ($96,359) must be set aside for equipment replacement. In considering our needs, I am recommending this amount be earmarked for the replacement of our current Emergency Government vehicle, with any additional funds needed to be budgeted in FY2009. If any funds are leftover after this purchase of an EG vehicle, the money should be set aside for a new aerial truck for the fire department
CAPITAL/MISCELLANEOUS IMPROVEMENTS:$96,360 remains from the surplus, and I am proposing the following expenditures
$25,000 – To be set aside as an emergency fuel fund for departments which will run a fuel deficit in 2007 due to the increasing price of gas
$20,000 - Construction of two concrete dugouts for the girls softball diamonds in Murray Park
$10,000 - The purchase of additional and replacement playground equipment (replacing the $3000 request from the Park and Rec Board and adding $7000)
$10,000 - To increase the money set aside for the Welcome to Ripon signs
$9,000 - To fund the hiring of a consultant to determine if the moving of the rail system through Ripon is feasible
$6,000 – Repair four (4) street lights in Barlow Park
$5,000 - Replacement of the existing Ripon population signs, with additional signing beneath highlighting the Birthplace of the Republican Party and the home of Ripon College
$5,000 - Refinancing the Downtown Facade Grant Program (the program has not been funded since 2000)
$3,360 – Additional funding for the city’s sesquicentennial celebration (mainly targeted for the purchase and planting of a city time capsule)
$3,000 – Replace the toilet partitions in Ceresco Park
Thursday, May 22, 2008
BUDGET SURPLUS EXPENDITURE PROPOSAL
Alliance Honored By City of Ripon
Tuesday, May 20, 2008
New North Towns Named Among State’s Best - Ripon Makes List
The New North communities being recognized by Wonders of Wisconsin are:
Algoma – Best Town on a Lake (#4)
Baileys Harbor – Best Town for Boating Getaway (#2)
Crivitz – Best Snowmobiling Getaway (#5)
Egg Harbor –Best Galleries and Art Scene (#1)
Elkhart Lake – Best Town on a Lake (#3)
Ephraim – Most Beautiful Town (#3); Most Distinctive Architecture (#5)
Fish Creek – Best Theater and Entertainment Town (#3); Best Cross Country Skiing Town (#4); Most Romantic Town for Adult Getaway (#3)
Green Lake – Most Scenic Beauty (#3); Best Town for Dining (#1); Best Town for Family Weekend (#2)
Keshena – Best Town on a River (#5)
Kohler – Best Shopping (#4); Most Romantic Town for Adult Getaway (#4)
Peshtigo – Best Historic Town (#5)
Plymouth – Best Galleries and Art Scene (#5); Best Cross Country Skiing Town (#5); Best Town for Biking (#5)
Princeton – Best Shopping (#5)
Ripon – Best Historic Town (#3)
Sister Bay – Best Town for Dining (#1)
Sturgeon Bay – Best Shopping (#3)
Two Rivers – Best Town for Biking (#2)
Waupaca – Best Town for a Fishing Getaway (#4)
Wonders of Wisconsin accepts nominations throughout the year from individuals regarding which towns are considered among the state’s best. Over 3,000 people voted online to help select Wisconsin’s best small towns. For a complete list of the winners, please visit http://www.wondersofwisconsin.com/.
New North, Inc. is a regional collaboration effort focused on promoting regional cooperation and economic development in an 18-county region in Northeast Wisconsin. The 18 counties included in the New North are Outagamie, Winnebago, Calumet, Waupaca, Brown, Shawano, Oconto, Marinette, Door, Kewaunee, Sheboygan, Manitowoc, Fond du Lac, Green Lake, Marquette, Florence, Menominee, and Waushara. To find out more information about New North, Inc., please visit our website at http://www.thenewnorth.com/.
RIPON MEDICAL CENTER TO PURCHASE LAND IN BUSINESS PARK FOR NEW HOSPITAL
News Release
For Immediate Release
May 20, 2008
For more information, contact:
Jean Surguy, Interim CEO
Phone: (920) 748-3101
Ripon Medical Center
933 Newbury St.
Ripon, WI 54971
Aaron Kramer, Mayor of Ripon
Phone: (920) 291-5250
100 Jackson St.
Ripon, WI 54971
RIPON MEDICAL CENTER TO PURCHASE LAND IN
BUSINESS PARK FOR NEW HOSPITAL
(RIPON, Wis.) – On Tuesday, May 20, Ripon Medical Center announced its plans to build a new medical facility in Ripon, Wisconsin’s Kohl Business Park.
Through a collaborative agreement among Ripon Medical Center executives and board members, the Ripon Community Development Corporation and the City of Ripon, Ripon Medical Center is set to purchase a 10-acre land parcel in the new business park, at the corner of Highway 44 and Douglas St.
“Ripon has needed groups to work together toward specific goals,” stated Joan Karsten, Ripon Medical Center Board of Directors’ President. “Everyone involved has played an important role and been extremely positive throughout the process.”
The decision to move the hospital from its location at 933 Newbury St. in Ripon, Wis. rested on concerns surrounding the building’s dated infrastructure and extensive costs associated with remodeling the current facility. Ripon Medical Center feasibility studies also indicated that Ripon’s community would support a new facility, adding credence to the project.
Ripon Medical Center’s new hospital will accommodate increased visitor parking, better community exposure, easier helicopter access and a more convenient location. The new facility will offer services identical to Ripon Medical Center’s current offerings, although clinic and specialty expansion are likely due as space considerations are no longer a limiting factor.
Mayor Kramer believes that the new Ripon Medical Center facility will be a great addition to an already thriving community. “I think that Ripon needs certain fundamental elements in place to make it a better place to live and work, and healthcare is one of them,” said Kramer. “Ripon Medical Center’s new facility plans just solidify one of the key components of making Ripon a great place to live and raise a family.”
A verbal agreement between Ripon Medical Center and the City of Ripon has been completed and remaining legal implications are being finalized. Final approval from all parties and purchasing terms are expected within the next 30 to 60 days.
“I am amazed that we were able to put together a proposal and vision for the future that is a win-win for all parties involved,” said Mayor Kramer. “I can’t think of a more appropriate way to put a candle on the City of Ripon’s 150th anniversary within the community. It is truly a watershed event.”
The Ripon Medical Center Board of Directors has given unanimous consensus toward approval, with the final Board approval vote set for Tuesday, May 27. Funding for the new facility will consist of a capital campaign headed by the Foundation for Ripon Medical Center and City of Ripon financing support. The building of this new facility will have no tax impact on the Ripon community.
Although there are no decided estimates of when Ripon Medical Center will break ground at Kohl Business Park, planning members project a date of May 2009. When the new facility is complete, Ripon Medical Center’s previous building, owned by the City of Ripon, will likely be taken down and turned into residential lots, according to Mayor Kramer.
“I think [Ripon Medical Center’s new facility] will send a clear message to anyone outside Ripon that things are happening here and we have the people and the leadership in place to help move dreams into reality,” said Mayor Kramer.
About Ripon Medical Center
Located in Ripon, Wis., Ripon Medical Center and the Medical Specialties Clinic serve over 25,000 people from Ripon, Green Lake, Princeton, Markesan, Brandon, Rosendale, Fairwater and other area communities.
Accredited by the Joint Commission on Accreditation of Health Care Organizations, Ripon Medical Center’s 24-hour team of physicians, nurses and visiting specialists provide many patient healthcare services, including laparoscopic and laser surgery, occupational and cardiac rehab, a fully staffed emergency department, walk-in care and community wellness and health programs.
BREAKING: RMC-City reach agreement on land sale
(RIPON - May 20) - The City of Ripon and the Ripon Medical Center have reached an agreement in principle on the sale of nearly ten acres of land in the city's business park for the construction of a new multi-million dollar medical center and clinic, according to Mayor Aaron Kramer. Terms of the agreement have not been released, pending the execution of a developer's agreement. The project is the first for the new 58-acre expansion of the business park.
Ripon Guard unit to brief community/employers on upcoming mobilization
Ripon's National Guard unit will brief community/employers Thursday night about its expected mobilization as part of the 32nd Brigade's 2009 deployment to Iraq. The briefing, to begin at 6 p.m., will include information about training events and expected mobilization dates for Company A, 2nd Battalion, 127th Infantry; soldiers' rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA); and the role of ESGR, the Committee for Employer Support of the Guard and Reserve. Members of ESGR and the 127th Infantry will also be on hand to answer questions and to share experiences from previous deployments. The briefing is part of an Employer Information Open House to be held from 5 to 7 p.m. May 22nd at the National Guard Armory, 707 East Fond du Lac Street, Ripon. The event is co-sponsored by Company A and Wisconsin ESGR, a Defense Department-sponsored volunteer organization that provides education, consultation, and mediation for employers of Guard and Reserve employees. ESGR aims to enhance military readiness by encouraging part-time troops and their civilian employers to cooperate on issues related to training and deployments.
Thursday, May 15, 2008
YES!!! BREWERS INK BRAUN TO HISTORIC DEAL
The Brewers announced a record contract extension for Ryan Braun on Thursday, locking up the 24-year-old left fielder through the 2015 season. The 8-year deal is worth $45 million. Braun hit .324 with 34 home runs last season last season and was named National League Rookie of the Year. This season, Braun is hitting .289 with nine home runs and 29 RBIs.
Great, now is Prince next???????????????
Shame, Shame, Shame
The Assembly passed the so-called budget repair bill this week, by a slim 51-46 margin. State Representative Joan Ballweg (R–Markesan), J.A. "Doc" Hines (R–Oxford), and John Townsend (R–Fond du Lac) were among those voting FOR this financial travesty. I have been reading a number of local and statewide blogs, which have highlighted the fiscal landmines in this document (a thanks to Bootsandsabers.com for many of these), and have to give this repair bill a LARGE EMPHATIC F GRADE.
* The cuts in this budget total less than one-half percent of the budget. So repairing a deficity does not mean cutting in Wisconsin, it means reallocating. Another sign we have elected people who cannot say NO.
* It includes another raid on the transportation fund, $50 million, creating a transportation fund deficit of $28 million. What does it mean for you and me? Get ready to pay back more debt (meaning interest) to pay back the bonds (with interest) that are covering that transportation fund deficit. This would be similar to taking your mortgage money to pay the grocery bill, and tapping your home equity credit line to pay the mortgage. More debt piled on more debt...
* Delaying $125 million in school aids into the 2009–11 budget cycle creates an instant $125 million addition to the state’s structural deficit. The Legislature already pushed another $125 million in debt payments from this budget to the next one, meaning we now have a QUARTER BILLION DOLLARS in deferred payments, simply because the Legislature can. Hello, U.S Bank, I will be making my June mortgage payment in July to balance the June family budget. You okay with
* It also delays until 2009–11 the implementation of the federal Real ID act, even though you saw your vehicle registration fees increase $10 to pay for this program. Do I get my money back??
* The 50 states have an average of $1 BILLION in their reserve funds. Wisconsin had $65 MILLION at the end of the 2008–09 fiscal year. It has now been reduced to $26.26 MILLION, as of June 30, 2009. That is just $1.26 MILLION more than the legally required $25 million balance. Another wise fiscal move. Who is advising the lawmakers? Some leftovers from Bear Stearns?????
Of course, what would a budget be without some "policy" issues stuck in their to keep a certain segment of the population happy.
* "If a school board establishes a four-year-old kindergarten (K4) program, the program must be available to all eligible pupils. Provide that a school board that is operating a K4 program in the 2007-08 school year that did not comply with this requirement would need to be in compliance by the beginning of the 2013-14 school year. Specify that a K4 pupil enrolled in such a program would be included in the definition of membership for revenue limit and general school aid purposes." - Keeps WEAC happy with the bill.
* Modify the property tax exemption for educational, religious and benevolent institutions, women’s clubs, historical societies, fraternities, and libraries to extend to low-income housing and exclude low-income housing from the “rent use” requirement under current law.
* Extend the current law exemption for eligible farmland from special assessments for the construction of a sewerage or water system by a town sanitary district or a town to camps.
This also does not have any numbers for it because it doesn’t hit the state budget. (We need to find out which lawmaker has a camp in his district which has been asking for this exemption)
* Modify current law related to the crime of escape by defining “custody” to include actual custody or authorized physical control of persons on probation, parole or extended supervision by the Department of Corrections or under the control of a correctional officer. (What part of a budget repair does this involve??????????????????????????)
* Revise current law relating to the date by which individuals must complete an initial training program before they can solicit, negotiate, or sell long-term care insurance. (See above)
* Specify that no person may possess, release, control, store, sell, or transport, any fish, or viable fish eggs that are of an invasive species, if the person knows, or should know, that the fish is, or the eggs of the fish are, of an invasive species. (Another idea which SHOULD be part of a separate piece of legislation)
And the future looks just as bleak. The current deficit, based on the Generally Accepted Accounting Principles (which Wisconsin, unlike many states does not use, is estimated at $2.15 billion, according to the Wisconsin Taxpayers Alliance's calculations last June. The projected structural deficit, according to the Legislative Fiscal Bureau, now stands at $1.7 billion for the next budget cycle. That new number is about $800 million higher than the estimate made in October, when the Legislature and Doyle agreed on the current state budget.
All in all, this is a classic example of applying a bandaid to a large, gaping wound, and hoping the voters/taxpayers are too stupid to notice until after November's election are in the history books.
Friday, May 2, 2008
God bless this man
A Marine who survived being burned over more than 95 percent of his body in Iraq and established a charity to help burned children has died, the military has announced.http://merlinsmiracles.com/
Sgt. Merlin German was 22.
He was severely wounded February 21, 2005, en route to Camp Ramadi when his Humvee hit a roadside bomb.
He was not expected to survive, but he was transported to Germany and then to Brooke Army Medical Center in Texas, which has the U.S. military’s top burns unit.
He spent nine months in intensive care and underwent more than 100 operations.
German moved out of the hospital into his own home after 17 months of treatment.
He founded Merlin’s Miracles, a charity that aims “to assist burned children and their families to take vacations, trips, outings or anything the families needed to make life a little easier,” according to its Web site.
German died April 11 at Brooke Army Medical Center of complications after surgery.
Another contribution to society from an ILLEGAL immigrant
http://sheboygan-press.com/apps/pbcs.dll/article?AID=/20080502/SHE0101/80502029/1973
Man gets 18 months for sex with disabled teen
OK, explain this to me. The crime carried a punishment of THIRTY-SIX years, the assistant DA recommended two years, the pervert's attorney wanted probation. AND the judge gives him eighteen months...EIGHTEEN MONTHS.(SHEBOYGAN) - A 44-year-old Sheboygan man who admitted having sex with a mentally disabled teen was sentenced this morning to 18 months in prison after confessing his love for the girl while asking the judge for leniency.Juan Aguilar, an illegal immigrant who had been living at 1523 Indiana Ave., met the girl — a 17-year-old with the mental capacity of a third- or fourth-grader — at a Laundromat near his home, according to a criminal complaint. He told Judge James Bolgert that she loved him, came to visit him of her own free will and consented to the sexual contact.“I never abused her. I always took care of her. I don’t want to cause her harm,” Aguilar said in a written statement read by an interpreter. “I would like to ask you to give me the smallest punishment, because I never abused the miss. … She would come to my house every day to eat. We didn’t always have sex. I took care of her.”Aguilar’s attorney Thomas Gerleman, asked Bolgert to sentence Aguilar to probation only, and Assistant District Attorney Jim Haasch recommended two years in prison. Aguilar faced a maximum of 36 years behind bars after pleading no contest to two felony counts each of child enticement and causing a child to view sexual activity under a plea agreement that dismissed 10 misdemeanor offenses.
Aguilar told police he and the girl watched pornography together on at least two occasions, the complaint said.Gerleman urged Bolgert to be lenient — pointing out Aguilar has no criminal history and worked to send money to his family in Mexico — but Haasch said such factors do not alter the seriousness of theNO prior criminal history????????? Of course not, being in the country illegally is not criminal. In fact, watching the parades on Thursday and reading some of the local newspaper articles makes one realize that the laws are WRONG, not the people who break them ***Sarcastic laugh***.
offense.
Bolgert said he considered Aguilar’s character in sentencing, but also took into account the girl’s condition. Aguilar’s expected deportation at the end of his prison sentence was also a factor, the judge said.WHAT character? Illegal immigrant...law-breaker...AND almost a guarantee to come back to the United States shortly after his eventual deportation to do the jobs we Americans will not do. What a tragedy.
Wednesday, April 30, 2008
Street Closure On Ripon College Campus to Begin July 1st
From Ripon College Days.com
Seward and Elm Streets are set to be removed July 1 in the section from Bartlett Hall on Woodside Street to the S.N. Pickard Commons on Congress Street this summer. The streets will be replaced by walking paths and green space."Safety, aesthetics and to further expand our 'greening' of the campus [were our main priorities]," says President David Joyce.Students will no longer have to look both ways before crossing from the residential part of campus to upper campus.Other benefits will be a greener campus, which will enhance the overall appearance of the college. Linley Lane will be extended from lower campus to the current Seward/Elm intersection in front of the Pub.The rest of the plans will depend on how much money the college can secure through donations. Joyce says that raising money is a major priority this semester.
Friday, April 25, 2008
Some observations on the health insurance situation
As someone who has recently been blessed with a new baby, the opportunity to think about the health care/insurance situation presented itself. Our baby was born at Saint Agnes Hospital in Fond du Lac, because that is where our insurance required us to have the delivery. My wife's insurance allowed her to stay up to 96 hours in the hospital. We actually stayed only 80 hours, since my wife is a quick healer, and she wanted to come home.
1 - There is NO incentive to come home earlier. My wife could have easily stayed another night, with the free meals and comfortable bed. How many people would come home earlier if there was a financial incentive, say, $100 from the insurance company, if there was no medical risk to doing so?
2 - Seeing two people man the valet station at the hospital entrance just had me scratching my head.
3 - There was a director of the maternity ward two rooms down from my wife's room. Why is this person not actually on the floor, providing nursing duties? A possible cost-savings one would think. Similar to the idea of a school district principal or administrator teaching in the classroom.
Just some random thoughts...
Happy Tax Freedom Day
Since this is the day we actually start to keep some of the wages we make, let's tip our hats to Steve Prestegard for his pointed op-ed piece on Tax Freedom Day in Wisconsin:
http://mpmmarketplaceofideas.blogspot.com/2008/04/happy-tax-freedom-day.html
Business Park Expansion Set to Begin Soon
Nearly two years after the current Industrial Park was expanded by 58 acres, the city will move forward with installing streets and other infrastructure in the next few weeks. The winning bid was awared to Ripon Lime and Materials. Their bid was $778,000. According to their bid, the work will take roughly four months (125 days).
A list of all of the bids can be found here.
Monday, April 21, 2008
THE FIRST FAMILY GROWS: WELCOME TO EMILY MARIE
Arrival Time: 10:51 AM, 21 April 2008
Nickname: Emmy
Weight: 7 pounds, 7 ounces
Length: 19 1/4 inches
Fit as a fiddle and ready to play
Hair: Dark, and she has some despite her father's apparent lack of
Nurses: Say she looks like Daddy, but is sweet like Mommy
More pictures can be found here : http://www.the-kramerfamily.com/BABY2.html
Wednesday, March 26, 2008
June, July & August, 2008
Spring and summer must be around the corner...
For the sixteenth consecutive summer, the streets of downtown Ripon will be filled with the sound of music when the Village Green Concert Series returns. This year's series will allow you to enjoy a greater variety of music than ever before.
June, July & August, 2008 - Historic Downtown Ripon - Friday Evenings 7:00 to 10:00 p.m.(Rain or Shine)
Tentative Performance Schedule:
June 6 - T.B.A. Sponsor: Available
June 13 - Andy's Automatics (Country) - Sponsor: Available
June 20 - Reverend Raven (Blues) - Sponsor: Available
June 27 - Vic Ferrari (Rock) - Sponsor: Available
July 4 - Blueheels (Country) - Sponsor: Available
July 18 - The Britins (Beatles Tribute Band) - Sponsor: Available
July 25 - I Drank With Frank (Rock) - Sponsor: Available
August 1 - Dave Steffen (Blues) - Sponsor: Available
August 8 - Bent with Jason Mansmith (Rock) & Open Mic Night - Sponsor: Available
August 15 - Whiskey River (Country) - Sponsor: Available
August 22 - Tuba Dan (Polka) - Sponsor: M&I Bank
August 29 - T.B.A. (Alternative) - Sponsor: S.M.A.C. (Ripon College Student Media & Activity Committee)
FROM THE MAIN STREET WEBSITE:
"Main Street has scheduled a diverse group of entertainers encompassing a wide range of musical styles," noted Craig Tebon, Ripon's Downtown Manager. "We tried to select bands that would appeal to a variety of people." The entertainment scheduled will encompass musical styles ranging from the honky-tonk sound of Andy's Automatics, classic country by Whisky River, polkas by the Tuba Dan Band, scorching hot blues by Reverend Raven and Dave Steffen, and a variety of rock by I Drank With Frank, The Britins, Vic Ferrari and more. The concerts run from 7:00 to 10:00 p.m. and take place on The Village Green located at the corner of Watson and Seward Street in downtown Ripon. Participants are encouraged to bring folding chairs or blankets to sit on. The series runs June through August, with the exception of Riponfest weekend, July 11-13. A special Thank You goes out to the local businesses that sponsor the music series. Let them know you appreciate the financial commitment they have made to our community. We are grateful to have their support, because there would not be a concert series without their financial assistance. Ripon Main Street, Inc. invites you to enjoy an evening of entertainment in historic downtown Ripon and discover what makes our community so special.
What's the real federal deficit?
A scary article from last August that is good to re-read with the "economic stimulus" checks coming:
What's the real federal deficit?
Updated 8/4/2006 9:55 AM ET
By Dennis Cauchon, USA TODAY
The federal government keeps two sets of books. The set the government promotes to the public has a healthier bottom line: a $318 billion deficit in 2005. The set the government doesn't talk about is the audited financial statement produced by the government's accountants following standard accounting rules. It reports a more ominous financial picture: a $760 billion deficit for 2005. If Social Security and Medicare were included — as the board that sets accounting rules is considering — the federal deficit would have been $3.5 trillion. Congress has written its own accounting rules — which would be illegal for a corporation to use because they ignore important costs such as the growing expense of retirement benefits for civil servants and military personnel. Last year, the audited statement produced by the accountants said the government ran a deficit equal to $6,700 for every American household. The number given to the public put the deficit at $2,800 per household. A growing number of Congress members and accounting experts say it's time for Congress to start using the audited financial statement when it makes budget decisions. They say accurate accounting would force Congress to show more restraint before approving popular measures to boost spending or cut taxes. "We're a bottom-line culture, and we've been hiding the bottom line from the American people," says Rep. Jim Cooper, D-Tenn., a former investment banker. "It's not fair to them, and it's delusional on our part." The House of Representatives supported Cooper's proposal this year to ask the president to include the audited numbers in his budgets, but the Senate did not consider the measure.
Good accounting is crucial at a time when the government faces long-term challenges in paying benefits to tens of millions of Americans for Medicare, Social Security and government pensions, say advocates of stricter accounting rules in federal budgeting. "Accounting matters," says Harvard University law professor Howell Jackson, who specializes in business law. "The deficit number affects how politicians act. We need a good number so politicians can have a target worth looking at." The audited financial statement — prepared by the Treasury Department — reveals a federal government in far worse financial shape than official budget reports indicate, a USA TODAY analysis found. The government has run a deficit of $2.9 trillion since 1997, according to the audited number. The official deficit since then is just $729 billion. The difference is equal to an entire year's worth of federal spending.
Surplus or deficit?
Congress and the president are able to report a lower deficit mostly because they don't count the growing burden of future pensions and medical care for federal retirees and military personnel. These obligations are so large and are growing so fast that budget surpluses of the late 1990s actually were deficits when the costs are included. The Clinton administration reported a surplus of $559 billion in its final four budget years. The audited numbers showed a deficit of $484 billion. In addition, neither of these figures counts the financial deterioration in Social Security or Medicare. Including these retirement programs in the bottom line, as proposed by a board that oversees accounting methods used by the federal government, would show the government running annual deficits of trillions of dollars. The Bush administration opposes including Social Security and Medicare in the audited deficit. Its reason: Congress can cancel or cut the retirement programs at any time, so they should not be considered a government liability for accounting purposes.
Policing the numbers
The government's record-keeping was in such disarray 15 years ago that both parties agreed drastic steps were needed. Congress and two presidents took a series of actions from 1990 to 1996 that:
• Created the Federal Accounting Standards Advisory Board to establish accounting rules, a role similar to what the powerful Financial Accounting Standards Board does for corporations.
• Added chief financial officers to all major government departments and agencies.
• Required annual audited financial reports of those departments and agencies.
• Ordered the Treasury Department to publish, for the first time, a comprehensive annual financial report for the federal government — an audited report like those published every year by corporations. These laws have dramatically improved federal financial reporting. Today, 18 of 24 departments and agencies produce annual reports certified by auditors. (The others, including the Defense Department, still have record-keeping troubles so severe that auditors refuse to certify the reliability of their books, according to the government's annual report.)
The culmination of improved record-keeping is the "Financial Report of the U.S. Government," an annual report similar to a corporate annual report. (The 158-page report for 2005 is available online at fms.treas.gov/fr/index.html.) The House Budget Committee has tried to increase the prominence of the audited financial results. When the House passed its version of a budget this year, it included Cooper's proposal asking Bush to add the audited numbers to the annual budget he submits to Congress. The request died when the House and Senate couldn't agree on a budget. Cooper has reintroduced the proposal. The Federal Accounting Standards Advisory Board, established under the first President Bush in 1990 to set federal accounting rules, is considering adding Social Security and Medicare to the government's audited bottom line.
Recognizing costly programs
Adding those costs would make federal accounting similar to that used by corporations, state and local governments and large non-profit entities such as universities and charities. It would show the government recording enormous losses because the deficit would reflect the growing shortfalls in Social Security and Medicare. The government would have reported nearly $40 trillion in losses since 1997 if the deterioration of Social Security and Medicare had been included, according to a USA TODAY analysis of the proposed accounting change. That's because generally accepted accounting principles require reporting financial burdens when they are incurred, not when they come due. For example: If Microsoft announced today that it would add a drug benefit for its retirees, the company would be required to count the future cost of the program, in today's dollars, as a business expense. If the benefit cost $1 billion in today's dollars and retirees were expected to pay $200 million of the cost, Microsoft would be required to report a reduction in net income of $800 million. This accounting rule is a major reason corporations have reduced and limited retirement benefits over the last 15 years. The federal government's audited financial statement now accounts for the retirement costs of civil servants and military personnel — but not the cost of Social Security and Medicare. The new Medicare prescription-drug benefit alone would have added $8 trillion to the government's audited deficit. That's the amount the government would need today, set aside and earning interest, to pay for the tens of trillions of dollars the benefit will cost in future years. Standard accounting concepts say that $8 trillion should be reported as an expense. Combined with other new liabilities and operating losses, the government would have reported an $11 trillion deficit in 2004 — about the size of the nation's entire economy. The federal government also would have had a $12.7 trillion deficit in 2000 because that was the first year that Social Security and Medicare reported broader measures of the programs' unfunded liabilities. That created a one-time expense.
The proposal to add Social Security and Medicare to the bottom line has deeply divided the federal accounting board, composed of government officials and "public" members, who are accounting experts from outside government. The six public members support the change. "Our job is to give people a clear picture of the financial condition of the government," board Chairman David Mosso says. "Whether those numbers are good or bad and what you do about them is up to Congress and the administration." The four government members, who represent the president, Congress and the Government Accountability Office, oppose the change. The retirement programs do "not represent a legal obligation because Congress has the authority to increase or reduce social insurance benefits at any time," wrote Clay Johnson III, then acting director of the president's Office of Management Budget, in a letter to the board in May.
Ways of accounting
Why the big difference between the official government deficit and the audited one?
The official number is based on "cash accounting," similar to the way you track what comes into your checking account and what goes out. That works fine for paying today's bills, but it's a poor way to measure a financial condition that could include credit card debt, car loans, a mortgage and an overdue electric bill. The audited number is based on accrual accounting. This method doesn't care about your checking account. It measures income and expenses when they occur, or accrue. If you buy a velvet Elvis painting online, the cost goes on the books immediately, regardless of when the check clears or your eBay purchase arrives. Cash accounting lets income and expenses land in different reporting periods. Accrual accounting links them. Under cash accounting, a $25,000 cash advance on a credit card to pay for a vacation makes the books look great. You are $25,000 richer! Repaying the credit card debt? No worries today. That will show up in the future. Under accrual accounting, the $25,000 cash from your credit card is offset immediately by the $25,000 you now owe. Your bottom line hasn't changed. An accountant might even make you report a loss on the transaction because of the interest you're going to pay.
"The problem with cash accounting is that there's a tremendous opportunity for manipulation," says University of Texas accounting professor Michael Granof. "It's not just that you fool others. You end up fooling yourself, too." Federal law requires that companies and institutions that have revenue of $1 million or more use accrual accounting. Microsoft used accrual accounting when it reported $12 billion in net income last year. The American Red Cross used accrual accounting when it reported a $445 million net gain. Congress used cash accounting when it reported the $318 billion deficit last year. Social Security chief actuary Stephen Goss says it would be a mistake to apply accrual accounting to Social Security and Medicare. These programs are not pensions or legally binding federal obligations, although many people view them that way, he says. Social Security and Medicare are pay-as-you go programs and should be treated like food stamps and fighter jets, not like a Treasury bond that must be repaid in the future, he adds. "A country doesn't record a liability every time a kid is born to reflect the cost of providing that baby with a K-12 education one day," Goss says. Tom Allen, who will become the chairman of the federal accounting board in December, says sound accounting principles require that financial statements reflect the economic value of an obligation. "It's hard to argue that there's no economic substance to the promises made for Social Security and Medicare," he says. Social Security and Medicare should be reflected in the bottom line because that's the most important number in any financial report, Allen says. "The point of the number is to tell the public: Did the government's financial condition improve or deteriorate over the last year?" he says. If you count Social Security and Medicare, the federal government's financial health got $3.5 trillion worse last year. Rep. Mike Conaway, R-Texas, a certified public accountant, says the numbers reported under accrual accounting give an accurate picture of the government's condition. "An old photographer's adage says, 'If you want a prettier picture, bring me a prettier face,' " he says.
Fox Valley environmental leaders to speak at Ripon College April 3
Fox Valley environmental leaders to speak at Ripon College April 3
RIPON, Wis. – Noted Fox Valley “green business” advocates Dr. Steve Dunn and Paul Linzmeyer will be on hand to discuss environmentally sustainable business practices from noon-1 p.m. April 3 in the Great Hall of Ripon College’s Harwood Memorial Union. The event is free and open to the public.
Dunn and Linzmeyer are principals of Ecolution, Inc., a nonprofit concern that consults with businesses on environmental compliance, environmental risk management, and long-term sustainable development strategies. Ecolution’s mission is to help make area businesses aware that business success and environmental stewardship go hand-in-hand. Their work will be featured in an upcoming issue of New North magazine.
Linzmeyer is a general partner in Innovative Sustainability for Business, Inc. He was chair of the Green Bay Chamber of Commerce and the Wisconsin Council on Workforce Investment, and currently chairs both the Bay Area Workforce Development Board and the Industry committee of the Wisconsin Global Warming Task Force. Recently, Paul was appointed by the U.S. Department of Commerce to represent our country in Paris at the Organization for Economic Cooperation and Development policy meeting.
Dr. Steve Dunn is chair of the Supply Chain and Operations Management department at the University of Wisconsin-Oshkosh and teaches environmental management at both the graduate and undergraduate levels. He is the founder and director of the Center for the Advancement of Sustainable Processes and Environmental Research (CASPER) at UW-O and will discuss his newest book, The Green Baron: A Business Parable on Ecolution.
The event is sponsored by the Environmental Group of Ripon (EGOR). For more information, contact Talya Petersik at petersikt@ripon.edu.
Wednesday, February 27, 2008
BEST OF WISHES TO TOMMY HOBBS
Tommy Hobbs accepts position in Peru, Illinois
Ripon, WI – The Ripon Medical Center Board of Directors regrets to announce that Tommy Hobbs, CEO of Ripon Medical Center has announced his resignation to accept a leadership position with the Illinois Valley Community Hospital in Peru, Illinois. Hobbs’ resignation is effective March 21, 2008.
Hobb’s arrived in Ripon March 3, 2003 as RMC’s CEO under a management contract with Brim Healthcare. Brim Healthcare provides consulting and management services to 38 full-service, acute-care hospitals in 15 states. Brim is a privately held company and is based in Brentwood, Tennessee.
Joan Karsten, president of RMC’s Board of Directors believes Hobbs will be missed by the hospital. “Tommy’s leadership at RMC has resulted in significant growth at RMC on many levels. His involvement has truly elevated the overall quality of healthcare provided by RMC to the people and families we serve. His focus on increased customer service, positive partnerships with local and area physicians and providers, and his emphasis on RMC’s involvement and visibility in area communities will be sorely missed. All of us at RMC are happy for him and his family regarding this opportunity, but are saddened that he is leaving.
RMC will continue to work with Brim Healthcare to transition a new CEO at the hospital. “Brim will be assisting us with the recruitment of a new CEO for RMC”, states Karsten. “We have talked with them about bringing in an interim CEO to assist the hospital and the staff with many initiatives and activities started under Tommy’s tenure here. We will then work to recruit and hire a new CEO; however, we do not have details as to a timeline for this to occur. During this transition, everyone at RMC remains dedicated to our very important mission; “Connected to your community, we provide quality healthcare with a personalized approach”.
Wednesday, February 20, 2008
THOUGHTS AND PRAYERS TO ALL OF THE FAMILIES AND FRIENDS....
Reckless homicide charges are being referred to the Fond du Lac County District Attorney after an apparent accidental shooting in Ripon claimed the life of an 18 year old Omro man. The victim has been identified as Jason Perry of Omro. The suspect, 19 year old, Evan Tolsma, of Brandon is being held at the Fond du lac County Health Care Center...and will later be transferred to the Fond du Lac County Jail. Ripon police were called to a home early Wednesday morning. Ripon Police Chief, Dave Lukoski, says the Wisconsin State Crime Lab assisted Ripon police in processing the scene. Ripon police are continuing their investigation.
