New rates are initially developed as a ground up or cost allocation rate builds. This requires estimating costs, deﬁning billable units, and projecting consumption of billable units. The process includes:
- Estimating costs using standard ﬁnancial categories, such as staff, support tools, infrastructure, internal consumption, facilities, and licensing.
Rates may then transition into cost pool or annual adjustment models. In this model, DET makes rate adjustments annually based on the ﬁnancial position of a Line of Business, which includes:
- Reporting needs to be developed to track and report billable units.
- Actual and projected expense and revenue are used to determine if a service or Line of Business is over- or under-recovering.
- The service rate is then adjusted to achieve and maintain program positions as close to zero as possible.
All DET services are listed on the Rate Sheet (FY23). As new services are added, rates are communicated and added to this list. Non-standard services and DET Service lifecycle which have “Sunset" designation will see increases in the monthly rate as there are additional service charges for those items.
Supplemental details for State of Wisconsin government agencies, boards, and commissions regarding each of the service rates can be found here: Business Planning rates (wi.gov).