Wisconsin’s Real Financial Situation Explained

The following is a list of totals reported in the Wisconsin State Comprehensive Annual Financial Report (CAFR), fiscal year ending June 30, 2010.

The individual funds and investments that make up these totals are listed in detail below these fund “totals”.

All of this is sourced from the state’s 2010 CAFR, which can be downloaded at the state governments website, here: http://www.doa.state.wi.us/subcategory.asp?linksubcatid=374&locid=3

It may also be viewed online here: http://www.docstoc.com/docs/23131666/Wisconsin-Comprehensive-Annual-Financial-Report

Page numbers are listed, so you can follow along in the CAFR for verification, and my comments are in red.

And now, the answer to the question… Is the State of Wisconsin bankrupt?

First, let’s have a look at what Wisconsin has in its investment funds, which is not being reported to the taxpayers of the state or of America…

(See below for explanation)



-> $4,403,000,000


-> $365,800,000


-> $1,023,000,000


-> $127,400,000


-> $200,000


-> $72,000,000


-> $2,006,000,000


-> $6,603,000,000


-> $94,847,000


-> $664,459,000

TOTAL NONMAJOR ENTERPRISE FUNDS listed as “All Nonmajor Funds”

-> $1,446,072,000


-> $350,107,000


-> $66,937,157,000


–> $2,606,398,000


–> $2,265,681,000

TOTAL AGENCY FUNDS listed as “Totals”

-> $334,837,000


-> $89,299,958,000




-> $11,693,400,000


-> $22,487,900,000


-> $34,181,300,000



-> $123,481,258,000


Note: This should not be construed to be a representation of all hidden wealth and investments within the state government of Wisconsin, but rather the ones that jump off the page to the semi-trained eye. Revenue bonds and other investment assets and future profits are still beyond my scope of translation.

But to put this state government wealth into perspective… The population of the state of Wisconsin as of 2010 was 5,686,986 people. The above figure of over $123 Billion represents investments and capital net assets, which total $21,712 per person in the state of Wisconsin. Remember… many of those people are kids with no income!

This summary compilation of the wealth of the state of Wisconsin is for one purpose: to show exactly what the Wisconsin state government is holding in cash and liquid investments, and not hiding this wealth by stating what their “future obligations” are. So the above figure is what the state had in actual assets, cash, and investments as of June 30, 2010, after liabilities were already paid, and not what it will spend later (which is just their way to hide this current wealth as reported by attaching its value to future financial obligations). Compare this with your exact personal bank account balance today, not what it will be next week or in 5 years (or once future bills are paid with future checks). This is the balance today, and it includes your savings and investments at their value today, not in the future.

While the State government will tell us that these funds are designated or “restricted” to the funds that house them, there is no law that says this is the case, and they are transferred between each fund (intra-fund) all of the time. Do not let these crooks tell you that these funds and investments are restricted without proof. SHOW US THE LAW!

This is rightly taxpayer money, and it could and should be used for taxpayer purposes. Instead, it is being withheld from the public (taxpayers), invested in these funds, and used for “business activities” within this for-profit corporation known as the “State of Wisconsin”. There is no reason that any government (meaning the people; the public) should be in debt, at all, with this kind of hidden wealth.

The state of Wisconsin is obviously far from bankrupt!


***Note: This is just the state corporation (government), and does not include the counties, municipal corporations (cities), towns, school districts, and other corporate governments within the state of Wisconsin. Each of these “governments” has their own investments, funds, and assets, which are listed separately on each of their CAFR’s. The assets of all of these individual government corporations within the state do not appear on the state CAFR.

There are 72 counties in the State of Wisconsin.

There are 190 cities (municipal corporations) in the State of Wisconsin (as of 2006).

There are 1,260 towns in the State of Wisconsin (some the same as cities).

There are 370 school districts in the State of Wisconsin (approx).

All of these are different government corporations. All of these have separate CAFR’s.

Malls, movie theaters, golf courses, most other commercial real estate entities, electric and gas companies, water and sewage companies, universities and colleges, parks and zoos, parking meters and garages, toll roads and bridges, and many other types of government owned businesses are all part of individual governments listed in their CAFRs.

The total wealth of the state of Wisconsin can only truly be measured by adding up the investments, assets, funds, enterprise operations (businesses), and other government wealth and investments within each of these individual corporate governments, through each county and local government Comprehensive Annual Financial Report.


***Note: There is a rabid defense of pension funds by the government employees who benefit from them, and of course by the government who controls and profits from them and their investments. But it is important to understand that the money that is being contributed to these pension funds is also taxpayer money. In 2009, the amount contributed to the Wisconsin Retirement System by state employees was $736,689,000. But the amount contributed by taxpayers who are not employees of any state office (ordinary taxpaying citizens) was $632,706,000. In other words, over $632 million in taxpayer money went to support this pension fund system in the form of government employer contributions, which could have gone to support government activities that would support the taxpayers themselves or to pay off debt. Government Employers are funded with taxpayer money. Thus their contributions are coming from taxpayer money. Simple.

The Wisconsin Retirement System pension fund made a $10.5 Billion dollar profit (return on investment) in fiscal year 2009, and a $5.4 Billion dollar profit in fiscal year 2010.

This was after all benefits and liabilities were paid for the year. This money is in no way benefiting the taxpayers of the state. This was pure profit for the fund – the return on investments!!!

***Note: This is what I could find looking at the Wisconsin State CAFR, and represents the assets and investments as reported by the state at the end of fiscal year 2010, which ended June 30, 2010. Thus, these are the totals as of that date (06/30/10) – which is the latest Comprehensive Annual Financial Report available for viewing to the public. This took two full days of reading and research to acquire. While I made every attempt at accuracy, I have no financial background. Crosschecking my accuracy and verifying if I accidentally reported any items twice is suggested. You have the report at your fingertips…

-Clint Richardson-
March 1, 2011


The information below is pulled straight from the 2010 CAFR for the State of Wisconsin…

Download here: http://www.doa.state.wi.us/subcategory.asp?linksubcatid=374&locid=3

(My comments are in red)


(Page 19)


The State of Wisconsin, like the rest of the nation, experienced an economic decline that persisted from Fiscal Year 2009 in to Fiscal Year 2010. To assist in stimulating the economy, the federal 2009 American Recovery and Reinvestment Act (ARRA) provided tax relief and additional funding for approximately 132 federal programs administered by at least 16 different state agencies. Both events impacted the financial results reported for the State.

Government-wide (Tables 2 and 3 on Pages 22 and 23)

Net Assets. The assets of the State of Wisconsin exceeded its liabilities at the close of Fiscal Year 2010 by $11.7 billion (reported as “net assets”). Of this amount, $(9.9) billion was reported as “unrestricted net assets”. A positive balance in unrestricted net assets would represent the amount available to be used to meet a government’s ongoing obligations to citizens and creditors.

Changes in Net Assets. The State’s total net assets decreased by $29.3 million in Fiscal Year 2010. Net assets of governmental activities increased by $31.7 million or 0.6 percent, while net assets of the business-type activities showed a decrease of $61.0 million or 1.0 percent.

Excess of Revenues over (under) Expenses — Governmental Activities. During Fiscal Year 2010, the State’s total revenues for governmental activities of $26.2 billion were $1.3 billion more than total expenses (excluding transfers) for governmental activities of $24.9 billion. Of these expenses, $12.6 billion were covered by program revenues. General revenues, generated primarily from various taxes, totaled $13.6 billion.

Note: The State of Wisconsin, as listed under Table 3: “Changes in Net Assets”, earned $34.84 Billion in tax-based revenues, which represents a $3.89 Billion increase in revenue generation for the state. In other words, the state government through its business activities related to taxpayers earned over 3.8 billion dollars more profit than they did in the 2009 fiscal year at the taxpayers expense (See Table 3 on page 23 of the CAFR).

This Financial Highlights section makes it appear that the Wisconsin government is in trouble, but I assure you this is not the case.

Net assets of the State are listed here as well at $11,693,400,000. But this does not include the funds we will be going over starting now…


(Page 75)


The State maintains a short-term investment “pool”, the State Investment Fund, for the State, its agencies and departments, and certain other public institutions which elect to participate. The investment “pool” is managed by the State of Wisconsin Investment Board (the Board) which is further authorized to carry out investment activities for certain enterprise, trust and agency funds. A small number of State agencies and the University of Wisconsin System also carry out investment activities separate from the Board.


(Page 76)

B. Investments

1. Primary Government
Wisconsin Statutes, program policy provisions, appropriate governing boards, and general resolutions contained in revenue bond indenture documents define the types of securities authorized as appropriate investments and the conditions for making investment transactions.

Investments of the State are managed by various portfolios. For disclosure purposes, the following investment portfolios are discussed separately:

Primary government, excluding the University of Wisconsin System, the Wisconsin Retirement System and the State Investment Fund. The primary government portfolios include various funds managed by the State of Wisconsin Investment Board consisting of the following:

— Local Government Property Insurance Fund (LGPIF)
— State Life Insurance Fund (SLF)
— Injured Patients and Families Compensation Fund (IPFCF)
— Historical Society Fund
— Tuition Trust Fund

University of Wisconsin System (UWS)

Wisconsin Retirement System (WRS)

State Investment Fund (SIF) — functions as the State’s cash management fund by “pooling” the idle cash balances of all State funds and other public institutions. Investments of the SIF are discussed in section B 3 of this note disclosure.

The State of Wisconsin Investment Board (the Board) has exclusive control over the investments of the Local Government Property Insurance Fund (LGPIF), the State Life Insurance Fund (SLF), the Injured Patients and Families Compensation Fund (IPFCF), the Historical Society Fund, and the Tuition Trust Fund, which are collectively known as the “various funds”.


(Page 77)

Custodial Credit Risk
Custodial credit risk is the risk that, in the event of a failure of the counterparty, the State will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party.

So the states investments (taxpayer money) are at risk of loss with no recovery or insurance while it is being invested without the consent or knowledge and comprehension of the taxpaying public.


Primary Government (excluding the University of Wisconsin System (UWS), the Wisconsin Retirement System (WRS), and the State Investment Fund (SIF))

At June 30, 2010, the reported amount of investments of the primary government, including the various funds, was $4,403.7 million, of which $286.9 million is reported as cash equivalents and $327.0 million is reported as “Other Assets”. The primary government, including the various funds, does not have an investment policy specifically for custodial credit risk, however, at June 30, 2010, the primary government had no custodial credit risk exposure for these investments.

(in millions, The Primary Government Funds called “Various Funds”, which include the LGPIF, the SLF, the IPFCF, the Historical Society Fund, and the Tuition Trust Fund have $4.403 Billion Dollars in investments)


Wisconsin Retirement System (WRS)

All assets of the WRS are invested by the State of Wisconsin Investment Board (the Board). The WRS consists of shares in the core retirement trust fund and the variable retirement trust fund…

The retirement fund assets consist of shares in the Variable Retirement Investment Trust and the Core Retirement Investment Trust. The Variable Retirement Investment Trust consists primarily of equity securities. The Core Retirement Investment Trust is a balanced investment fund made up of fixed income securities and equity securities. Shares in the Core Retirement Investment Trust are purchased as funds are made available from retirement contributions and investment income, and sold when funds for benefit payments and other expenses are needed.

The assets of the Core and Variable Retirement Investment Trusts are carried at fair value with all market value adjustments recognized in current operations. Investments are revalued monthly to current market value. The resulting valuation gains or losses are recognized as income, although revenue has not been realized through a market-place transaction.

The investments of the core retirement trust fund consist of a highly diversified portfolio of securities. Wis. Stat. Sec. 25.182 authorizes the Board to manage the core retirement trust fund in accordance with “prudent investor” standard of responsibility as described in Wis. Stat. Sec. 25.15(2) which requires that the Board manage the funds with the diligence, skill and care that a prudent person acting in a similar capacity and with the same resources would use in managing a large public pension fund.

At June 30, 2010, the WRS investments were $66.6 billion. The WRS does not have a formal policy for custodial credit risk. As of June 30, 2010, the WRS held eighteen tri-party repurchase agreements totaling $787.0 million.

(The Wisconsin Retirement System (WRS) has over $66 billion in investments.)


University of Wisconsin System (UWS)

At June 30, 2010, the UWS investments were $365.8 million, of which $26.7 million is reported as cash equivalents. The UWS’s investments are registered in the name of the UWS and the UWS does not participate in any securities lending programs through its custodian bank. Investment securities underlying the UWS’s investment in shares of external investment pools or funds are in custody at those funds. The shares owned in these external investment pools are registered in the name of the UWS.

(The University of Wisconsin System (UW) has $365.8 million in investments.)


(Page 89)

2. Component Units
…except for the Wisconsin Health Care Liability Insurance Plan and the University of Wisconsin Foundation (Other Component Units)

Wisconsin Housing and Economic Development Authority (Authority) – The Authority is required by statute to invest at least fifty percent of its General Fund funds in obligations of the State, of the United States, or of agencies or instrumentalities of the United States, or obligations, the principal and interest of which are guaranteed by the United States, or agencies or instrumentalities of the United States. Each investment portfolio specifies what constitutes a permitted investment and such investments may include obligations of the U.S. government and agencies securities; corporate bonds and notes; money market mutual funds; commercial paper; and repurchase agreements and investment agreements.

The Authority enters into collateralized investment contracts with various financial institutions. The investment contracts are generally collateralized by obligations of the United States government.

The Authority is also authorized to invest its funds in the State Investment Fund.

The Authority’s aggregate investments at June 30, 2010 were $1,023.7 million of which $843.8 million are reported as cash equivalents.

(In millions, The Wisconsin Housing and Economic Development Authority has $1.023 billion in investments)


University of Wisconsin Hospital and Clinics Authority – The University of Wisconsin Hospitals and Clinics Authority’s (the Hospital) aggregate investments at June 30, 2010 were $375.6 million of which $248.2 million (invested with the University of Wisconsin Foundation, see investment disclosure discussion for the University Wisconsin Foundation) are reported as “Cash and Investments with Other Component Units.” The board of directors has authorized management to invest in debt and equity securities.

(In millions, The University of Wisconsin Hospital and Clinics Authority has $375.6 million, $127.4 million of which is not invested in the University fund (see above))


State Fair Park Exposition Center, Inc. – The aggregate investments at December 31, 2009 were $.2 million consisting of money market funds reported as cash equivalents.

(In millions, The State Fair Park Exposition Center, Inc has $200 thousand in investments)


(Page 91)

Other Component Units

Wisconsin Health Care Liability Insurance Plan (WHCLIP) – Aggregate investments of the WHCLIP were $72.0 million, of which $13.2 million are money market and other highly liquid debt instruments reported as cash equivalents.

The WHCLIP does not hold investments in any one issuer that exceeds 5 percent of total assets.

As of December 31, 2009, the WHCLIP did not own any issues denominated in a foreign currency.

Excluded investments include: bonds rated below A by a major rating service at the time of purchase, foreign bonds not denominated in U.S. currency, futures transactions, short selling, use of margin, derivatives and hedge funds.

The investments of the WHCLIP at December 31, 2010 were $58.9 million consisting of the following (in millions):

Amortized Estimated Investment Type Cost Fair Value

U.S. Treasury securities and
–   obligations of the U.S. government
–   corporations and agencies                    $10.1
Debt securities issued by foreign
–   governments and corporations             $3.2
Industrial and miscellaneous                   $25.5
Loan-backed securities                              $24.2

Total                                                         $63.0

(In millions, The WHCLP Fund has $72 million in investments)


(Page 92)

University of Wisconsin Foundation (the Foundation) – Aggregate investments of the Foundation are $2,006.6 million.

The following table summarizes the types of investments of the Foundation at December 31, 2009 (in millions):

Investment Type Fair Value

Bond and debentures    $455.5
Stocks                                $512.2
Bond funds                      $106.0
Stock funds                        $25.5
Hedge funds                    $478.4
Limited partnerships     $278.6
Real asset funds              $146.2
Other funds                          $4.2

Total                         $2,006.6

(in millions, University of Wisconsin Foundation Fund has $2.006 Billion in investments)


(Page 101)

Component Unit

University of Wisconsin Foundation – The University of Wisconsin Foundation’s (the Foundation) endowment consists of 3,067 individual funds established for a variety of purposes. Its endowment includes both donor-restricted endowment funds and funds designated by the Board of Directors to function as endowments. Net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

The Board of Directors has interpreted the Uniform Management of Institutional Funds Act (UPMIFA) as requiring the preservation of fair value of the original gift as of the gift date of the donorrestricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently-restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently-restricted net assets is classified as temporarily-restricted net assets until those amounts are appropriated for expenditure by the organization in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

• The duration and preservation of the fund
• The purpose of the Foundation and the donor-restricted endowment fund
• General economic conditions
• The possible effect of inflation and deflation
• The expected total return from income and the appreciation of investments
• Other resources of the Foundation
• The investment policies of the Foundation

Endowment Net Asset Composition by Type of Fund as of December 31, 2009 (in millions):

Unrestricted  –  Temp. Restricted  –  Perm. Restricted  –  Total

$(38.2)                        $175.0                        $749.5            $886.3

(In other words, the Board Of Directors of the University of Wisconsin Foundation have made the original donations made by a donor(s) (known as endowments) a restricted money base, meaning it cannot be used for anything else. But the money made on the investment gains from these donations, the capital gains, are designated as “unrestricted” and can be used or transferred elsewhere in government or into these types of secretive funds not reported to the taxpayer on the annual taxpayer budget report.)

(So… In millions, The University Of Wisconsin Fund also includes $886.3 million in cash and investments, which are “donor-restricted”.)

(Page 100)

The University of Wisconsin System invests its trust funds, principally gifts and bequests designated as endowments or quasi-endowments, in two of its own investment pools: the Long Term Fund and the Intermediate Term Fund. Benefiting University of Wisconsin System entities receive quarterly distributions from the Long Term Fund, principally endowed assets, based on an annual spending rate applied to a 12-quarter moving average market value of the fund…

University of Wisconsin System investment policies and guidelines for the Long Term Fund and Intermediate Term Fund are governed and authorized by the Board of Regents.

The fair value of Endowments as of June 30, 2010 was $370.7 million including an unrealized gain of $38.4 million when fair values as of June 30, 2010 are compared to asset acquisition costs. This compares to a fair value as of June 30, 2009 of $336.9 million. The net increase in fund balance during 2009-10 was $33.8 million. (That’s profit!)


(Page 102)

Celebrate Children Foundation, Inc
The Celebrate Children Foundation Inc. (CCF) endowment includes both donor-restricted funds and funds designated by the Board of Directors to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The Board of Directors of the CCF has interpreted the State Prudent Management of Institutional Funds Act (SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the CCF classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund…

(Page 103)

…The CCF expects the current spending policy to allow its endowment funds to grow at a nominal average rate of 3 percent annually. This is consistent with the CCF’s objective to maintain the purchasing power of the endowment assets as well as to provide additional real growth through new gifts and investment return. (But what about the children???)

Endowment net asset composition as of June 30, 2010:

–                      Unrestricted  –  Perm-Restricted  –  Total

Donor-restricted       $ —                   $1,083,214         $1,083,214


Board-designated  (14,812)                     —                      (14,812)

Total                   $(14,812)          $1,083,214     $1,068,402

(In millions, Celebrate Children Foundation, Inc Fund includes $1.068 million in cash and investments which are “donor-restricted”.)


(Page 93)

3. State Investment Fund

The State Investment Fund (SIF) functions as the State’s cash management fund by “pooling” the idle cash balances of all State funds and other public institutions. In the State’s Comprehensive Annual Financial Report, the SIF is not reported as a separate fund; rather, each State fund’s share in the “pool” is reported on the balance sheet as “Cash and Cash Equivalents.” Shares of the SIF belonging to other participating public institutions are presented in the Local Government Pooled Investment Fund, an investment trust fund.

Wis. Stat. Secs. 25.17(3)(b), (ba), (bd) and (dg) enumerate the various types of securities in which the SIF can invest, which include direct obligations of the United States or its agencies, corporations wholly owned by the Untied States or chartered by an act of Congress, securities guaranteed by the United States, unsecured notes of financial and industrial issuers, direct obligations of or guaranteed by the government of Canada, certificates of deposit issued by banks in the United States and solvent financial institutions in Wisconsin, and bankers acceptances. Other prudent investments may be approved by the State of Wisconsin Investment Board’s (the Board) Board of Trustees.

Investments are valued at fair value for financial statement purposes and amortized cost for purposes of calculating income to participants. The custodial bank has compiled fair value information for all securities by utilizing third party pricing services. The fair value of investments is determined at the end of each month. Government and agency securities and commercial paper are priced using matrix pricing. This method estimates a security’s fair value by using quoted market prices for securities with similar interest rates, maturities, and credit ratings. Short-term debt investments with remaining maturities of up to 90 days are valued using amortized costs to estimate fair value, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Repurchase agreements and nonnegotiable certificates of deposit are valued at cost because they are nonparticipating contracts that do not capture interest rate changes in their value. In addition, a bond issued by another State agency having a par value of $21.2 thousand is valued at par, which management believes approximates fair value.

(Page 94)

For purposes of calculating earnings to each participant, all investments are valued at amortized cost. Specifically, income is distributed to pool participants’ monthly based on their average daily share balance. Distributed income includes realized investment gains and losses calculated on an amortized cost basis, interest income based on stated rates (both paid and accrued), amortization of discounts and premiums on a straight-line basis, and investment and administrative expenses. This method differs from the fair value method used to value investments because the amortized cost method is not designed to distribute to participants all unrealized gains and losses in the fair values of the pool’s investments.

Custodial Credit Risk

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the Board will not be able to recover the value of investments or collateral securities that are in the possession of an outside party. Investments are exposed to custodial credit risk if the securities are uninsured and unregistered and are either held by the counterparty or by the counterparty’s trust department or agent but not in the name of the Board.

At June 30, 2010, the reported amount of investments was $6,603.9 million. The SIF had no custodial credit risk exposure for these investments.

Interest Rate Risk
Interest rate risk is defined as the risk that changes in interest rates will adversely affect the fair value of investments. The weighted average maturity method is used to analyze interest rate risk and investment guidelines mandate that the weighted average maturity for the entire portfolio will not exceed one year. At June 30, 2010, the following table shows the investments by investment type, amount and the weighted average maturities (in millions):

Weighted Average Investment Fair Value

Bank NOW account deposits      $755.6
Repurchase agreements           $1,249.0
Government and agency          $4,599.0
Certificates of deposit                      $0.3
Mortgage backed securities        $331.0

Total                                       $6,603.9

(In millions, The State Investment Fund has $6.603 Billion Dollars in investments)


(Page 95)

4. Lottery Investments and Related Future Prize

Investments of the State Lottery Fund totaling $64.0 million are held to finance grand prizes payable over a 20-year or 25-year period. The investments in prize annuities are debt obligations of the U.S. government and backed by its full faith and credit as to both principal and interest. Liabilities related to the future prize obligations are presented at their present value and included as Accounts Payable and Other Accrued Liabilities.

(in thousands, there is $64 Million Dollars in investments in the “Lottery Fund”)


(Page 128)

G. Arbitrage Rebate
The Tax Reform Act of 1986 requires that governmental entities issuing tax-exempt debt subsequent to August 1986, calculate and rebate arbitrage earnings to the federal government. Specifically, the excess of the aggregated amount earned on investments purchased with bond proceeds over the amount that would have been earned if the proceeds were invested at a rate equal to the bond yield, is to be rebated to the federal government. As of June 30, 2010, a liability for arbitrage rebate did not exist.

(Though it didn’t happen in fiscal year 2010, some investment income called “arbitrage” is given to the Federal Government as a penalty (tax) for making what you might call other than legal investment returns.)


(Page 142)

It is the general policy of the State not to purchase commercial insurance for the risks of losses to which it is exposed. Instead, the State believes it is more economical to manage its risks internally and set aside assets for claim settlement in its internal service fund, the Risk Management Fund. The fund services most claims for risk of loss to which the State is exposed, including damage to State owned property, liability for property damages and injuries to third parties, and worker’s compensation. All funds and agencies of the State participate in the Risk Management Fund.

Changes in the balances of claims liability for the Risk Management Fund during the current and prior fiscal years are as follows (in thousands):

–                                                                  2010               2009

Beginning of fiscal year liability      $103,119         $95,000

Current year claims and changes
in estimates                                          $21,376          $41,508

Claim payments                                  (28,278)         (28,089)
–                                                      _____________________

–                                                              $96,217          $108,419

Excess insurance reimbursable        (1,370)            (5,300)
–                                                      _____________________

Balance at fiscal year-end       $94,847       $103,119

(In thousands, the Risk Management Fund used for lawsuits against the state and for worker’s comp (taxpayer money in this fund) is 94.84 million dollars.)


And now, listed here are the individual funds where much of this money is being hidden and invested. This is a list of all reported funds. A description of each fund can be found in the CAFR. Page numbers are listed as reference to those descriptions. Many of these funds grew (made a profit) for fiscal year 2010 over 2009 totals, some by millions of dollars (see balance sheet). Only the totals for each fund are listed here, as presented in the combining balance sheets following the descriptions of the funds within the 2010 CAFR. Some funds are grouped into total balances on the balance sheet, and these are notated as (see below).


(Pages 169-182)


SPECIAL REVENUE: Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for a specified purpose. The State’s special revenue funds are described below:

The Conservation Fund

–> $92,152,000

The Election Administration Fund

–> $16,244,000

The Utility Public Benefits Fund

–> $20,491,000

The Petroleum Inspection Fund

–> $14,132.000

The Wisconsin Public Broadcasting Foundation Fund

-> $12,393,000

The Celebrate Children Foundation Fund

–> $1,523,000

The Heritage State Parks and Forests Fund

–> (See Below)

The Waste Management Fund

–> (See Below)

The Environmental Fund

–> (See Below)

The Dry Cleaner Environmental Response Fund

–> (See Below)

The Recycling and Renewable Energy Fund

–> (See Below)

Total for above (5) funds listed as “Other Environmental Revenue Funds” above


OTHER SPECIAL REVENUE FUNDS – account for resources that must be used for specific purposes and include the following:

The Wisconsin Election Campaign

-> (See Below)

The Investment and Local Impact

-> (See Below)

The Industrial Building Construction Loan Fund

-> (See Below)


(Page 170)


The Self-insured Employers Liability Fund

-> (See Below)

The Work Injury Supplemental Benefit Fund

–> (See Below)

The Workers Compensation Fund

–> (See Below)

The Uninsured Employers Fund

–> (See Below)

The Mediation Fund

–> (See Below)

The Police and Fire Protection Fund

–> (See Below)

The State Capitol Restoration Fund

–> (See Below)

The Agricultural Chemical Cleanup Fund

–> (See Below)

The Agrichemical Management Fund

-> (See Below)

The Agricultural Producer Security Fund

–> (See Below)

The Historical Legacy Trust Fund

–> (See Below)

The History Preservation Partnership Trust Fund

–> (See Below)

The Wireless 911 Fund

–> (See Below)

The VendorNet Fund

–> (See Below)

The Universal Service Fund

–> (See Below)

The Children’s Trust Fund

–> (See Below)

Total for above (19) funds listed as “Other Special Revenue Funds”

-> $80,155,000

(Total Special Revenue Funds – $324,932,000)


(Page 170)


DEBT SERVICE FUNDS: Debt service funds account for the accumulation of resources for, and the payment of, principal, interest and related costs of general long-term obligations:

The Bond Security and Redemption Fund

-> $20,039,000

The Annual Appropriation Bonds

-> $33,905,000

The 2009 Annual Appropriation Bonds

-> $126,000

The Badger Tobacco Asset Securitization Fund

-> $8,564,000

The Petroleum Inspection Revenue Bonds Fund

–> $4,393,000

The Transportation Revenue Bonds Fund

–> $149,968,000

(Total Debt Service Funds – $216,994,000)

CAPITAL PROJECTS FUNDS: Capital projects funds account for financial resources used for the acquisition, construction, renovation or repair of major capital facilities (other than those financed by proprietary funds and trust funds). The State’s capital projects funds are described below:

The Building Trust

–> $24,775,000

The Capital Improvement Fund

–> $39,135,000

The Transportation Revenue Bonds Fund

–> $24,243,000

(Total Capital Projects Funds – $88,153,000)

PERMANENT FUNDS: Permanent funds are used to report resources
that are legally restricted to the extent that only earnings,
principal, may be used to support the State’s programs:

The Historical Society Fund –>


The Other Permanent Fund accounts for various resources legal restrictions requiring that principal remain intact and earnings may be spent, including the following:

• The Agricultural College and University statutory funds

–> (See Below)

• The Normal School statutory fund

-> (See Below)

• The Benevolent statutory fund

–> (See Below)

Total for above (3) funds listed as “Other Permanent Funds”

> $24,980,000

(Total Permanent Funds – $34,380,000)




(Pages 183-191)


ENTERPRISE FUNDS: Enterprise funds account for business-like State
activities that provide goods and/or services to the public and are
financed primarily through user charges. The State’s enterprise
funds are described below:

The Lottery Fund

–> $158,368,000

The Income Continuation Insurance Fund

–> $82,794,000

The Long-term Disability Insurance Fund

–> $218,977,000

The Health Insurance Fund

–> $216,313,000

The Veterans Trust Fund

–> $54,736,000

The Veterans Mortgage Loan Repayment Fund

–> $288,514,000

The Care and Treatment Facilities Funds – account for various
resident facilities including:

• The Mendota Mental Health Institute Fund

–> $31,804,000

• The Winnebago Mental Health Institute Fund

–> $26,047,000

• The Homes For Veterans Fund

–> (See Below)

• The Northern, Central, and Southern Developmental Disabilities Center Funds

–> (See Below)

Total for above (2) funds listed as “Other Care and Treatment Facilities”

-> $120,426,000

OTHER ENTERPRISE FUNDS: account for the following programs:

The State Fair Park Fund

–> (See Below)

The Institutional Farm Operations Fund

–> (See Below)

The Correctional Canteen Operations Fund

–> (See Below)

The Local Government Property Insurance Fund

–> (See Below)

The State Life Insurance Fund

–> (See Below)

The Transportation Infrastructure Loan Fund

–> (See Below)

The Life Insurance Fund

–> (See Below)

Total for above (7) funds listed as “Other Enterprise” funds

-> $248,093,000


(TOTAL NONMAJOR ENTERPRISE FUNDS listed as “All Nonmajor Funds” – $1,446,072,000)


(Pages 192-201)


INTERNAL SERVICE: Internal service funds account for the operations of State agencies which render services to other State agencies, institutions, or other governmental units on a cost-reimbursement basis. The State’s internal service funds are described below:

The Technology Services Fund

–> $40,917,000

The Fleet Services Fund

–> $32,676,000

The Financial Services Fund

–> $3,143,000

The Facilities Operations and Maintenance Fund

–> $253,425,000

The Risk Management Fund

–> $9,223,000

The Badger State Industries Fund

–> $10,724,000


(TOTAL INTERNAL SERVICE FUNDS listed as “totals” – $350,107,000)


(Pages 202-212)


FIDUCIARY FUNDS: Fiduciary funds are maintained to account for assets held by the State acting in the capacity as a trustee or agent. The State’s fiduciary funds, consisting of pension and other employee benefit trust, investment trust, private-purpose trust, and agency funds, are described below:

PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS: Pension and other employee benefit trust funds are used to report resources that are required to be held in trust for members and beneficiaries of the public employee retirement system or other employee benefit plans:

The Wisconsin Retirement System Fund

–> $66,415,157,000

The Accumulated Sick Leave Fund

–> $-393,157,000 (Total assets listed at + $1,802,597,000)

The Duty Disability Fund

–> $334,828,000

The Reimbursed Employee Expense Fund

–> $1,108,000

The Local Retiree Life Insurance Fund

–> $225,553,000

The Retiree Life Insurance Fund

–> $353,669,000




INVESTMENT TRUST FUNDS: Investment trust funds account for assets invested on a commingled basis by the State on behalf of other governmental entities. The State’s investment trust funds are described below:

The Local Government Pooled Investment Fund

–> $2,490,278,000

The Milwaukee Retirement System Fund

–> $116,120,000


(TOTAL INVESTMENT TRUST FUNDS listed as “Totals” –> $2,606,398,000)


PRIVATE-PURPOSE TRUST: Private-purpose trust funds are used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments:

The Tuition Trust Fund

–> $8,473,000

The BadgerRx for Individuals Fund

–> $177,000

The College Savings Program Trust Fund

–> $2,247,475,000

The Retiree Health Insurance Fund

–> $9,556,000


(TOTAL PRIVATE-PURPOSE TRUST FUNDS listed as “Totals” – $2,265,681,000)


AGENCY FUNDS: Agency funds report those assets for which the State acts solely in a custodial capacity. The State’s agency funds are described below:

The Insurance Company Liquidation Account Fund

–> $720,000

The Local Retiree Health Insurance Fund

–> $2,156,000

The Inmate and Resident Fund

–> $16,711,000

The Bank and Insurance Company Deposits Fund

–> $303,730,000

The Support Collection Trust Fund

–> $11,521,000


(TOTAL AGENCY FUNDS listed as “Totals” – $334,837,000)





Again, the above information is taken from the State of Wisconsin’s Comprehensive Annual Financial Report for fiscal year ending June 30, 2010.

Going through these reports is the only way to get a grasp on the amount of wealth your local, county, or state government has in its hidden funds and investments.

Please do not let my efforts go to waste! This needs to be seen by all taxpaying citizens, no matter what state they reside in. This is a blueprint for most or all state governments. If you stay silent about this, you are giving your consent to this crime.

Silence is consent.

Confront your legislators.

Ask questions. Demand answers.

Get a rope…


Please go to these other websites for more information on CAFR’s:




–Clint Richardson (realitybloger.wordpress.com)

Tuesday, March 1, 2011

Leave a comment


  1. ahhhhh, just as i thought ! The established media is pinning this non existent Wisconsin debt on hard working union people to lute more from the public.

    The fine folks of WI and around the world need to scream from the rooftops about this corporate nation scam that wants more and more and more from us.

    Nice work, back to viewing the facts !


  2. Local governments within the state have their own investments but some commingling takes place. The state may operate an investment pool where many other local governments participate. The county or state may collect the money for distribution to the school districts. So cross over takes place but if all local government investments were totaled collectively it would dwarf the state totals.


  3. Not surprised? Socialism is a parasitical disease often manifesting as fascism, and increasingly pumps wealth from the people to become hard-core communism.
    The socialist regime promises to provide for the people with taxation, ala Social Security and Medicare, then, when it deems them “useless eaters” it declares funds are insufficient for unprofitable elderly, handicapped, and dissenting people. It is simply the elite robbing us blind to impoverish and disempower us in the feudalistic New World Order, manage us like livestock. Live Free or Die Trying! No king but Jesus!


    • Ming

       /  March 5, 2011

      Socialism is neither Communism nor Fascism. It’s when Communists and Fascists(Republicans) take advantage of the people,is when socialism fails.


      • I know a lot of misguided republicans (a private corporation) and they are certainly not Fascists.

        I know a lot of democrats (a private corporation) and they are certainly not socialists.

        Neither knows what the other is, simply because the media tells them to hate and fear each other. What would you expect though from a government owned corporate structure like the media?

        Both “parties” are nothing but misguided. That’s it! Nothing more.

        If republicans understood that the word liberal refereed to a free thinker trained in the liberal arts, they would never call a democrat a liberal.

        And if Democrats understood that the word conservative means to conserve the current system of government, they certainly wouldn’t call the republicans conservative or fascist.

        A persons ignorance of life, in my opinion, best shows its ugly head when they identify themselves as either republican or democrat, not having a clue that the only difference between the two party’s platforms is the abortion issue, and even that is warped by the media… there is a big difference between being pro-choice and being pro-abortion. Choice does not entail supporting abortion, merely the persons right to choose for themselves.

        Read this blog entry for more on this: https://realitybloger.wordpress.com/2010/02/01/paradigms-where-do-you-hide/


  4. les ego

     /  March 1, 2011



  5. Wisconsin Should Form its Own Bank
    by Jim Hogue
    for Vermont Commons

    This is not rocket science, but since when did a good, simple idea trump power and corruption? There are many policies that won’t be enacted that would be beneficial to Wisconsin and every other state. One such policy would be a state bank, combined with complementary currencies. This two-pronged policy would eliminate state debt and further insulate the states from fluctuations (or crashes) of the dollar. Having been a student of state banking and complementary currencies for many years, it is hard for me to imagine why the states have not followed the lead of North Dakota, which is not only well in the black, but self-sufficient to boot. After repeated lessons in government/central bank corruption in the early 1900s, they seceded from that system and created their own money supply. Why the rest of the states have bowed to the intimidation of the Feds, or simply failed to grasp the problem and solutions is not clear to me. I suppose that inertia is the most reasonable answer. To the states: inertia is no excuse. Denial is no excuse.

    What’s the problem? When the Continental Congress refused to accept the Vermont Republic as a state, the citizens did not cry in their soup. Their leaders realized who the enemy was and took a few brilliant steps to trump them. Today, the states seem to have no idea that the central banks and the federal government are one in the same, and that they are using the states as cash cows and cannon fodder. Why is that so difficult? They are robbing us blind with a laundry list of taxes, 44 to be exact, plus their own bail-out. And most of this money goes to pay the bankers (and their armies) who have ripped us off in the first place. I don’t know if the people and their state legislators are in denial, or if they are paralyzed with confusion. Exempt California from confusion, as they handled their debt problem with warrants – a form of state-issued, public credit, complementary currency.

    I do see the temptation to remain in the maze: low interest rates from the Fed and some high returns elsewhere that the states can tap into. If you are making money, why change? But most states are not making money; their portfolios are at very high risk due to speculative forces beyond their control, and their public wealth is being sent to the bond holders who lend states the money that the states could be creating. Another reason for not implementing a state bank might be that some states have programs (like student loans) that do one or two functions that a state bank might do. Yet another reason might be the evaporated multiplier. It used to be that money spent into the local economy would circulate within it. That is hardly the case now, with purchases by almost all sectors of the economy being made for out-of-state and out-of-country goods. And even the profits that end up in the states are invested out of the states. I won’t make light of that flight-of-capital. But I still maintain that the lack of understanding and foresight on the part of the states is jaw-dropping. Faced with shortages created by the central banks, they still insist in going to them hat in hand instead of looking to public credit currency. In Wisconsin, the governor is lying, and the unions are missing an opportunity to trump him and solve the problem.

    As I write this, the unions have already caved in to all of Walker’s demands, save the right to strike. They did not need to do that, but due to their failure to understand how money is created, they surrendered when victory was within their grasp. Walker distorts and the people comply.

    Compare this to what happened in 1776.

    The original colonies suffered far less in taxes as a percentage of their wealth than the states do today. The crown (the British Bankers) demanded only that the colonies use their currency and pay a tax on certain commodities (Sugar Act, Stamp Act, Townsend Revenue Act). That was plenty to make the bankers rich. And the colonists wouldn’t stand for it, not even the Tea Tax, which actually lowered the price of English tea. I believe you know what that disagreement lead to. Today’s bankers and their servants have increased the temperature of the boiling water gradually enough that few seem to have noticed. To the colonists The Stamp Act was unacceptable. The Stamp Act!? What have we become that we allow ourselves to be such sheep while pretending to defend democracy? In our time, not only do the states give up their financial sovereignty, but they do it gladly – like servants who can’t do enough to please their masters. This is with one glorious exception: North Dakota.

    In Wisconsin there seems to be no attention paid to the solution to the problem in which they find themselves. Sure they have bills to pay, and the normal, corrupt methods are not working. So . . . What is the nature of the discussion? What are the parameters of the discussion? Firstly, the governor and his sycophants are operating under the lie that the state has no money. They have not admitted (assuming they know what they are doing), or grasped (assuming that they don’t know what they are doing) that the CAFR (Comprehensive Annual Financial Reports) accounts could be leveraged to pay every financial demand now placed upon them. And they could do that with no bonds floated to Wall Street and beyond (Oh my God). The states could also institute a 1% or less tax on trades (Wall Street Tax) beyond a one million dollar ceiling, which would net the states millions in revenue. These particular scenarios they don’t want us to understand. They prefer “austerity,” but on whose part? Please contemplate why. Here’s a hint – they don’t give a damn whether or not we survive except to pay our taxes and fight their wars. That’s how they get rich, and why the poor stay poor.

    By forming a state bank and a state currency, we the people would be re-defining our relationship with the federal government and de-funding some of their imperial designs. At least, we would no longer be openly supporting them.

    So, with a little brain work and effort, we could pay all our bills, keep all the pension funds and other programs working, and begin to starve the beast at the same time. Is there a governor or state legislature with the guts to do that? Is there a governor or state legislature that would put the welfare of the state before feeding the corruption of the Central Banks?

    Jim Hogue

    Someone, please, get this to the workers in Wisconsin. The union leaders are either out to lunch or in the bag. JH


    • You hit the nail on the head, JH! That is exactly what is happening! For who wants to end up like O;’ Jimmyboy?? Go along to get along is the order of the day. All manner of BOSSES gotta find some Hosses and get the hell out of town!! It is past time that LABORS UNTOLD STORY is the required reading for all union members to really know why they are in a union. THen this Big Boss Man syndrome is made more difficult to acheive. Civics
      is sorely lacking and that must be made an educational essential for all union members to solidify their overstanding of the reason for the union!
      This info on the CAFRs in the cities, towns, counties, states and federal, corporatiosn all, must be made a part of the educational effort of the unions. If not you just get dependants, like social workers. NOT the function of Unions. By the way ck out http://www.tariksinfoworks.info and scroll down to my CAFR expose’ and information from CAFR1.com. Now there is a real hero, Walter Burien!! He certainly has my vote and backing for all he has gone through to get the awareness out about this CAFR madness, hiding over $83Trillion from the people of our funds. No one is broke or on the street! THere is widespread love and happiness!! OHH!! I forgot, that was the Magic Wand of the Hollytree. THankk you Sophia Stewart for your awesome mind and heart to go up against these megalomegas, and WIN!! HOORAY!!!Thanks again, JH,for your valuable insight and knowledge!


  6. Doug

     /  March 1, 2011

    The link to this blog should be posted as a comment on every Wisconsin budget news story…Nice job!


  7. Well, well, well, the CAFR scam by the scum who do the skimming, have had the curtain pulled back on them. These Buzzards of Fraud, are the biggest criminals of them all, as they are hiding behind some
    Corporate position and acting like nothing is going on! Hello, I mean O Hell,let us start the nationwide
    undressing of these CORPORATE/GOVERNANCE THIEVES and SCOUNDRALS. Using debt and debt currency to benefit themselves and their Corporate bosses. So solly, chally! The Jig is up! Put the cuffs on Alex!!


  8. Grant Hartnell

     /  March 1, 2011

    Thank you for your hard work. I appreciate all the help I can get in understanding What is really going on in this country as well as the rest of the world. I try to spread the word every day so others can see if they will make an effort.


  9. Julie Gorelik

     /  March 2, 2011

    As a Married Mom-way back in the early 1980’s after having our first baby girl;I got a crash course in taxes.My husband was laid off, and as provider of my brand new “Family”, I never had dreamed of the Torture-Financial Torture-my family would experience over the next what turned out to be 30-years!!Taking out loans to pay property taxes was something my Dad had never warned me about!Watching others getting their welfare checks while I worked pregnant and till I nearly dropped dead woke me up-REAL QUICK-“What is wrong with THIS PICTURE I asked myself ALOT!As just in our family alone-my husband&I have paid over one half MILLION just in taxes-they got our $$$-our home,and our Constitutional Rights of Life-Liberty&Pursuit of Happiness-Domestic Tranquillity-YOU NAME IT!!!It was taken-I KNEW we were being raped-I begged for someone to hear MY case-but NO ONE CARES-unless it’s happening to them.I want to sue for “Financial ABUSE&CRUELTY”-who would represent me???!I’m (Just a MOM).Maxed out-Taxed out.


  10. Louis T. Forgione

     /  March 2, 2011

    Good job !I been wating to hear you on this . Save whats lift of the the U.S.A.agen Thank You. Lou.


  11. Susan Kenney

     /  March 2, 2011

    GREAT reporting…thank you SO much. Am sending to all I know with a note to be sure to send to anyone at all that we all know in Wisconsin, as well as their own governors. What a sickening national shame.


  12. dan netko

     /  March 2, 2011

    Keep up the good work to expose this corrupt government activity to the public . I am passing the url address of this article to my entire email address with an explanation. REGARDING CORPORATION NATION: Make a condensed version of it that only lasts 20 minutes or so. Most people that i know are just too busy. They aren’t going to spend a lot of time on something unless they first are convinced that it’s legitimate and/or important. In the shorter version you could begin it with the details of this blog about wisconsin. And show a couple pages of the Wisc. CAFR early in the video to show legitimacy. Dan Netko PS I’d like to send you the article I wrote with input from Walter Burien. I wrote it for the person that knows nothing at all about the hidden gov. funds. You could use it and /or critique it and send your critique back to me. My goal is to make it credible and comprehensible to the person who knows nothing about this.


  13. Long term liabilities?

    $67B in assets.. going against what number in liabilities?

    The term “(WITHOUT DEDUCTIONS FOR LONG-TERM LIABILITIES)” does not seem to have a later answer.


    • “Long term liabilities” is a term used to change a positive number into a negative number (or less positive).

      By attaching the future debt onto the current (todays) assets and fund investments, the budget report that goes to the taxpayers every year can be heavily manipulated. Thus, the statement of net assets shows a $9 billion dollar shortfall. Obviously, this is a lie, as it is not taking into account the info in this article (fund balances).

      Again, this is a way to hide current wealth by attaching future debt onto it. Simple but effective… but these funds keep growing by leaps and bounds every year, so it is a scam.



  14. charles

     /  March 2, 2011

    If your surprised by one states wealth, then what an eye opener you’ll find in the federal cafr to the tune of $130 trillion surplus, surprise.


  15. stevn

     /  March 2, 2011

    Give it to the Democrats who fled the state. The fleebaggers. They will not use this information, neither will the Republicans. The Powers That Be will kill them if they brought this to the floor of the state house. Any journalist in any media were to report on this information, the PTB would kill them too. The answer is to kill the PTB. Start by pulling every Federal Reserve employee out into the street, find a tree or a lamp post, and string them up. That includes Ben Bernake, Alan Greenspan, and all living former Fed Reserve Bank employees. Even the front desk secretary and the security guards at all member banks of the Federal Reserve system. That is enemy number one of every working class American, period.


    • Disclaimer: I do not promote or approve of violent revolt. I do however, understand the sentiment. But nothing can be solved this way. Changing the laws in your local and state governments is the way. As long as the law is on the governments/corporations side, no punishments can be justified. Act locally.

      This is me attempting to cover my ass while allowing free speech! So whichever NSA/CIA slime is reading this, do not even start with that terrorist B.S. Enjoy hell…



  16. Camille

     /  March 2, 2011

    The Comprehensive Annual Financial Report scam http://www.cafr1.com should be placed on the Rachel Maddow show, MSNBC. She can create a show platform to offer this CAFR report as the solution to Wisconsinite with ALL the United States for America the Republic to follow. Expose the fraud and they are ALL forced to be accountable. See the crowd grow even larger when they get wind of this.


    • Good luck with that…

      Why not just write the CIA directly and ask permission?

      See: Operation Mockingbird

      Wonderful idea, but not practical. This is a battle between the people and government. The news media is literally owned by government. Sad but true…



  17. Dick

     /  March 2, 2011

    Nice work. If Illinois’ CAFRs are any indication, I’m guessing Wisconsin went on a massive derivatives binge in 2009-2010, reflected in the lower budget surplus of 2011. The sudden budget crises seem to be a reflection of:

    • more fascists than usual in office
    • a recognition of the worthlessness of derivatives (as if that wasn’t abundantly clear in 2007) and inevitability of real future budget crises
    • desire to keep muni bond / public-private partnership scams going

    Nothing like a balance sheet to bring some reality into the equation!


  18. Long live Walter Burien and thanks to Reality Blog for posting truth. The CAFR is the birth child of the General Accounting Principals adopted after WWII and is modeled on the mafia method of looting legitimate organizations such as labor unions. It is the governmental ponzi scheme that Bernard Madoff speaks and the idea is to loot the pension and fiduciary funds! Stop the crooks!


  19. PhiCrappaZappa

     /  March 2, 2011

    CAFR1.com Walter Burien has been preaching this message of corruption for years now. The Federal Reserve is the master of illusion. It’s a shell game, and ALL of our government is involved. Wake up Americans. Time to take it back. Thank you Walter Burien – God Speed to you.


  20. farang

     /  March 3, 2011

    So, there is a “rabid defense” from public union workers over their pension, eh? And the poor Wisconsin taxpayers have to support this extravagant spending on frivolous retirement and dignity eh?

    YOU LIAR: Wisconsin taxpayers do not pay ONE PENNY of the pension: the “rabid defenders” are guarding THEIR OWN CONTRIBUTIONS, you KOCH SUCKER!!!

    The Wisconsin Lie Exposed – Taxpayers Actually Contribute Nothing To Public Employee Pensions:

    Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.


    • So I take it that you are a pensioner?

      That was what you might call a “rabid” defensive response… LOL!!!

      I am sorry if I offended you, but you must understand that this money is not your money once you contribute it to the pension fund. A contribution is defined as the act of giving… which is exactly what you are doing (voluntarily) when you “contribute” your hard-earned money to the fund. You have no equity in that money, and a simple state action or bankruptcy or executive order will steal all of that money in the blink of an eye.


      Here are some examples of what I am referring to. Remember, your contributions are “matched” to a certain percent by your employer. Your employer is the government. Taxpayer money funds government. So taxpayer money is used to “match” your contributions.

      Wisconsin State Retirement System (In case you missed it above) – Contributions by:

      —State Employees – $736,689,000
      —Employers (government/taxpayers) – $632,706,000.

      Virginia Retirement System – Contributions by:

      —Employers (Government/Taxpayers) – $1,001,246
      —Members Paid By Employers – $736,413 (Combined, Government/Taxpayers paid 6500% more than employees)
      —Members (employees) – $26,225,000
      City of Aurora, Co – General Employee’s Retirement Plan… Contributions by:

      —City of Aurora (taxpayer money) – $4,790,713
      —Plan members (employees) – $4,795,873

      Contra Costa County Employee’s Retirement Association – Contributions by:

      —Employers (Government/Taxpayers) – $195,613,673 (Over 300% more than employees)
      —Employees – $66,536,161

      Los Angeles County Employees Retirement Association 2010 – Contributions by:

      —Employer (Government/Taxpayers) – $843,704 (200% more than employees)
      —Employees – $429,612

      Houston Firefighter’s Relief And Retirement Fund – Contributions by:

      —City of Houston (Government/Taxpayers) – $74,226,664 (300% more than employees)
      —Members (Employees) – $22,728,287

      I hope this explains what really happens in all of these funds. Surely you know that the “employers” are matching any funds that “employees” are contributing (giving) to the fund!

      Some funds are non-contributory, meaning that taxpayers only support the fund.

      I know it is hard to break the conditioning, but even as a person with interest in the pension system, you must see the theft that is happening here. If you don’t, and nothing is done to prevent this theft in the future, you will have no retirement pension fund to draw from! It just takes the stroke of a government (employer) pen…

      Wake up!!!



  21. Brian Cooper

     /  March 3, 2011

    Thank you for you diligence and dedication towards truth. I have sent this site out to a few million or more. God Bless


  22. Clint:

    Great website and your research is awesome!



  23. Sunny

     /  March 4, 2011

    Hi Clint,
    I have downloaded the Aurora CO CAFR and the State of Wisconsin CAFR’s links that you post to follow along.
    The page numbers are NOT matching for me and I cannot the info. I did find “Golf” info after looking around and then when I looked for the numbers you posted I could not find them.




    • I used the page numbers on the actual report (bottom of page), I believe. The numbers on the .pdf reader may vary from these page number… The first few pages are not numerical, but instead lettered.

      If not, let this be a challenge, not a deterrent. Find the info. Like an Easter egg hunt!!!



  24. MANY thanks to each of you who are following up on the important work of WALTER BURIEN. He is ONE in SEVERAL BILLION that has dared the LIARS! How come no one else EVER HAD THE BALLS TO PUBLISH SUCH TRUTHS (even if they had ever discovered such truths) PLEASE EVERYONE,take good care of that GENTLEMAN financially as the WHOLE WORLD OWES HIM A GREAT DEBT. IF WE SURVIVE as a species, one day he will be in the TRUE HALL OF FAME! Do you know someone with REAL MONEY? If so, tell them to either donate to those like Walter Burien or find a new planet to live on!


  25. Dwight

     /  March 8, 2011

    Ellen Brown’s article “The Mysterious CAFRs” shows how these funds exist but are not available to the state. She also shows how they could be used to the state’s benefit, but it would require going against the Wall Street powers-that-be:



  26. Jack

     /  March 9, 2011

    Thank you so much for exposing this Clint. What a great job you did.

    Now if you could just do my state’s CAFR also: http://www.comp.state.md.us/finances/revenue/reports/cafr/cafr2010.pdf I would be very much appreciative!


    Jack from Maryland


  27. Charna

     /  March 13, 2011

    How can I post this on my face book ? please give my ideas!!!


  28. born ultimatum

     /  March 13, 2011

    Clint. Anything to justify ripping off the tax payer. You are justifying refinancing to pay for a drug habit. At best groceries.


    • If I had any idea what you meant, I’d have a qualified response.

      Not sure what I was justifying, but it weren’t drugs or groceries…

      Care to rephrase?


  29. Rodd Foudray

     /  March 14, 2011

    Thank you for taking the time to dig and present all this information in a condensed form.It’s amazing but truly not unexpected.We are looking at this from our own small perspective,our state,but there actually is a far larger picture.This is all about blatant world wide capitalism,forced upon the world by organizations like the world bank and the IMF.They have run rough shod on the southern hemisphere,by destroying their indigenous economies,and replacing them with American Corporations,funded by the IMF and World Bank,and paid for on the backs of those country’s workers.I see a trend here,as these overlords of the world are playing their same game here.Destroy the manufacturing base,reduce real income,require farmers to buy from corporations for their seed,fertilizer,and even pay a tribute to the company for the privilege of planting these GMOs.Is this the world we want for ourselves and future generations?REVOLT IN ANY WAY YOU CAN brothers and sisters.


  30. Hi Walter & Clint Richardson

    I have been promoting you and your work and if you have heard of the New Republic I am talking to some of their reps about doing videos for CAFR county analysis…

    I want to hire someone like yourself or that other gentleman who did the Wisconsin report for a flat rate of 200 to look at the latest CAFR for a county and offer analysis…I will then put that analysis in a video for the reps to use to approach their city councils and media…

    I have two offers for two videos and intend on charging 600. 400. would cover my time shooting, editing, voiceover and 200. to the analyst…?

    I thought the guy did a terrific job in Wisconsin and intend on writing him in a moment also. Tell me if this seems like a reasonable arrangment?

    Thank you

    Gene Kalmes


  31. Mike88

     /  June 7, 2011

    This information about CAFR’s needs to be published on every Facebook, Financial Blog, Big Government Blog, and all of the community pages until the actual lame MSM is forced to report on it. It might take time but the media if enough people raise a big enough stink about it will then call this report a story and have to report on it.


  32. Marry

     /  June 13, 2011



  33. The individual funds and investments that make up these totals are listed in detail below these fund “totals”.


  34. Frank

     /  October 20, 2011

    Any money donated to the University of Wisconsin Foundation is not in any form state money or taxpayer assets. It was given under the fact that the state could not get its grubby hands on it. Your stupid state is doing more than enough to ruin what took over 150 years to build. Often in spite of the state and the moron “taxpayers”.

    Edited for typos.


    • Hmmm… Not sure I understand. What is my state?

      It is a state University, and therefore the State has its hands all over it. It is a state corporation, isn’t it?

      Very confusing comment.


  35. I was very pleased to uncover this site. I need to to thank you for your time due to this fantastic read!! I definitely loved every part of it and i also have you saved to fav to look at new information on your blog.


  36. I know it’s laborious to interrupt the acquisition, however as an individual with interest within the pension system, you need to see the stealing that’s happening here. If you don’t, and zilch is finished to forestall this stealing within the future, you may haven’t any superannuation fund to draw from! It simply takes the stroke of a government (employer) pen…

    Wake up!!!


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