June 1, 1998

Senator Mary A. Lazich and
Representative Carol Kelso, Co-chairpersons
Joint Legislative Audit Committee
State Capitol
Madison, Wisconsin 53702

Dear Senator Lazich and Representative Kelso:

We have completed a review of state funds provided to the Medical College of Wisconsin, Inc., for the 1995-97 biennium, as required by s. 39.15, Wis. Stats. During the biennium, the State provided the Medical College $8,103,073 for tuition aid for Wisconsin residents, $6,463,900 for the College’s family practice residency program, and $485,000 in state matching funds for the federal Area Health Education Centers project. In addition, the State paid $875,288 during the biennium for principal and interest related to debt it issued to finance construction of the College’s Medical Education Building.

To receive the tuition aid, the Medical College must comply with the requirements included in ss. 39.15 and 39.155, Wis. Stats. To ensure the College complied with the statutes, we reviewed the residency and enrollment status of the students claimed for tuition aid and how the Medical College gives preference in admissions to Wisconsin residents and promotes minority student enrollment. We found the Medical College was in compliance with the statutory requirements.

For the 1997-99 biennium, state support for the federal Area Health Education Centers will increase by $290,000, to $775,000, to compensate for a reduction in federal funding. State funding for the tuition aid program is expected to remain at the level appropriated during fiscal year 1996-97. As part of the 1997-99 budget adjustment bill, the Legislature increased state support for the family medicine and practice program by $181,900, to $3,371,900 for fiscal year 1998-99, to fund two additional family practice physicians in order to increase the number of family practice residents that may participate in the program.

We appreciate the courtesy and cooperation extended to us during our review by staff of the Medical College of Wisconsin and staff of the Higher Educational Aids Board, which certifies students as Wisconsin residents eligible for tuition aid.

Respectfully submitted,

Janice Mueller

State Auditor

JM/TC/mg

cc:       Senator Peggy Rosenzweig        Representative Stephen Nass
            Senator Timothy Weeden          Representative John Gard
            Senator Robert Wirch                Representative Gregory Huber
            Senator Kimberly Plache

            Mr. Douglas Campbell, Senior Vice President
            Medical College of Wisconsin, Inc.

            Ms. Jane Hojan-Clark, Acting Executive Secretary
            Higher Educational Aids Board

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