Legislative Wrap Up

The 65th Wyoming Legislature wound down late Thursday night (March 12). The session had four more days than a standard budget session and we needed them all to get through the year.

As everyone is aware it has been a tough year for Wyoming's coffers and looks to be even tougher coming up.

This year there were 256 house bills introduced and 97 of those became law. There were 142 Senate files and 70 of those became law. That is a 42% pass rate.

The biggest bill in a budget session is the budget itself. The total (all spending) appropriations were $8.819 billion dollars. Of this, $2.9 billion were general fund appropriations, federal funds were $1.7 billion, school foundation $1.8 billion and $2.270 billion of other fund appropriations.

Outside of the schools, total state employment is 7314 full time and 278 part time state employees.

Spending by department: Health $2.0 billion, education $1.8 billion K-12, Department of Education $325 million, other K-12 $11.6 million, community colleges $260.4 million, University of Wyoming $445.4 million.

These do not include major maintenance of schools and state-owned buildings of $128.9 million, corrections $288.1 million, judicial $76.4 million, Department of Administration and Information $875.6 million. I give these numbers to give a background on the state budget.

Some high-profile bills that passed:

HB134 Wyoming Tourism Account Funding – this bill takes the Department of Tourism off the general fund using a increase of the lodging tax.

SF 57 –Local Government Distributions – this bill provides supplemental funding to Wyoming's Cities and Towns. The formula changed slightly and gave smaller towns slightly higher funding.

HB 40 School Finance model recalibration – as required by law, every five years the state must assess school funding.

HB 159 Monthly payment of ad-valorem tax on mineral production – mineral companies pay ad valorem 12-18 months after the sale of minerals. This has become an increasing problem the last few years with many millions not being collected, causing shortages in school funding and local government funding. This bill over a few years moves the companies to paying the taxes as they are due.

HB 171 Wyoming Gaming Commission – this is a bill I have been working on for a few years. This bill transforms the pari-mutuel commission into the gaming commission, adds two new members (one law enforcement and one Native American), makes all machines that are clearly illegal disappear immediately, makes the skill or "grey games" get certification and a sticker immediately and makes them illegal in 14 months, unless the legislature enacts legislation legalizing them, makes it so the gaming commission or the attorney general can shut down and prosecute gaming violations if the local county attorney fails to act. This bill is the first step in stopping unregulated, illegal gambling on machines.

SJ1 is a bill I sponsored that sets up the framework for Hunter Education and Gun Safety to be taught in junior high and high schools in Wyoming.

One of the big bills that failed was SF119 – State Capital Construction. This bill contained funding for most state construction for the next biennium. Major components were emergency repairs at the Women's prison, repairs at Western Wyoming College, land acquisition and new building projects at all community colleges, construction of Corbitt Pool, West end stands renovation and a new building for the law school at University of Wyoming.

The bill died after the House and Senate did not agree on additional funding. The Senate held strong that there needed to be a break on funding on new construction at the University of Wyoming. The House would take no compromise that did not include full funding for University projects and the bill died over the difference.

The governor submitted a letter of projects he thought were necessary and this was rejected as well. By not passing, the bill leaves over $100 million of dollars that will be available for the next session.

With what is going on now, it might not be all bad. Education fared well this biennium with over $122 million in additional funding. Education continues to grow at a pace that exceeds inflation, something that can't continue without tax increases or massive cuts to general fund agencies.

The other big news was the possibility of the state purchase of four million acres of mineral rights and one million surface acres along the Union Pacific Railroad line. The bill to deal with that is SF138.

Occidental Petroleum has recently purchased the assets from Anadarko Petroleum and have deemed the mineral rights and surface as non-essential and for sale. The state has been investigating whether this would make financial sense for the state.

The state has over $22 billion in funds and investments. The return from these investments pay for almost 30% of all state spending, keeping tax increases away and supporting government functions.

Nearly all of the income comes from stocks, bonds and similar investments. Some feel the state should broaden its investment portfolio and have looked at this as a possible way.

The bulk of the income from these property's comes from production of trona or soda ash, which are not as susceptible to ups and downs as oil and gas and other stock and bond investments. I am neither in favor or opposed until more information is available.

All in all, the session was reasonably calm. The uncertainty near the end certainly cast a shadow over the last days.

I will be writing a few follow-ups over the summer on the next few biennium on what we are facing in the future. It is clear that in the 2023-2024 biennium that we will be facing around a $450-500 million shortfall for education funding – there's no way to sustain that without massive tax increases or major cuts.

I will try to lay out the facts in a series of articles. I am trying to offer options, not to come to conclusions, so positive input would be appreciated.

Thanks again for the opportunity to represent you in Cheyenne. I will be running for Majority Floor Leader of the Senate after the elections this fall. This would leave me second in leadership in the Senate. Please feel free to contact me with concerns and thoughts going forward.