Financing the operating costs and certain out-of-state projects of nonprofit institutions and compensation of employees of the Wisconsin Health and Educational Facilities Authority. (FE)
The bill also modifies existing laws governing out-of-state projects. Under current regulations, WHEFA can finance out-of-state initiatives only if a substantial component of the project is located within Wisconsin. The bill relaxes this requirement to permit financing for projects outside the state as long as the project's owner or operator maintains a presence within Wisconsin. This adjustment could increase opportunities for Wisconsin-based enterprises to engage with larger out-of-state projects and enhance economic ties.
Assembly Bill 63 proposes revisions to the Wisconsin Health and Educational Facilities Authority (WHEFA) statutes, focusing on financial provisions for health, educational, research, and nonprofit institutions. Notably, the bill expands WHEFA's capacity to finance not just projects but also working capital for operational expenses, thereby allowing these institutions to more effectively manage their ongoing costs. Previously limited to project financing, this change aims to enhance the financial sustainability of participating entities.
Another significant aspect of AB63 is its provision regarding the compensation of WHEFA employees, specifically the executive director and other staff. The bill proposes an increase in maximum salary limits for these positions, extending the threshold from executive salary group six to group eight for the executive director and from group three to group five for other employees. This change has sparked debate about the appropriateness of increasing salaries within a public body, especially during budget constraints and potential public scrutiny regarding government compensation practices.