Wyoming state budget
From Sunshine Review
Contents |
Wyoming is not facing a budget deficit for fiscal year 2009 or 2010. [1] But with energy revenue declining in the state, Gov. Dave Freudenthal said that hard decisions will have to be made for the FY 2010 budget. The Governor has already asked that state agencies prepare for possible funding cuts from 5 to 10 percent. [2] "Hard decisions that have to do with saying ‘no’ in a way that we’ve never had to say it before. In prior years, we would say ‘no, maybe next year.’ This year we may be compelled to say, ‘no, and maybe not for a long time,’” said Gov. Freudenthal. But despite a disappointing revenue forecast the Governor urged for investments to continue. For example, continued funding for Abandoned Mine Lands that is geared towards research of clean coal technology, coal gasification and questions surrounding the air quality and ozone challenges in western Wyoming. [3]
[edit] Impact of budget woes
- In February 2009 Wyoming's unemployment rate of 3.9 percent remained the lowest in the nation despite a loss of 800 employees from Wyoming oil and gas companies. [4]
- In January 2009 more than 5,700 Wyoming workers filed new jobless claims in all employment sectors, a 98 percent increase from January 2008. New claims filed in the natural resources and mining sectors increased 265 percent compared to January 2009. The retail trade, leisure and hospitality, and financial activities are also experiencing increases in jobless claims. [2]
- In anticipation of falling state revenue, Gov. Freudenthal warned state agencies to prepare for possible funding cuts from 5 to 10 percent in the fiscal year that starts in July. [2]
[edit] Budget background
Wyoming operates on a biennium budget. The biennium includes a 24-month period from July 1st of odd-numbered years to June 30th of odd-numbered years, such as the 2007-09 biennium, which runs from July 1, 2007 to June 30, 2009 All state agencies present their requests and past revenue and expenditure data by September or October for the Governor's consideration. The Consensus Revenue Estimating Group meets in October and develops revenue forecasts for the upcoming biennium. Following this, the Governor compiles a recommended budget that must be presented to the Legislature by December 1 of each year. Both the House and the Senate host a series of hearings to work through the budget. The entire budget working process takes 4 or 5 weeks and is completed at least one week before the budget session begins. Once both houses agree on the final budget bill the bill is passed into law. [5]
[edit] Budget figures
The following table provides a history of Wyoming's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $3.7 [6] | $17.3 [6] |
| 2001 | $4.0 [6] | $18.2 [6] |
| 2002 | $4.3 [6] | $19.6 [6] |
| 2003 | $4.7 [6] | $21.7 [6] |
| 2004 | $5.1 [6] | $23.4 [6] |
| 2005 | $5.6 [6] | $26.6 [6] |
| 2006 | $6.0 [6] | $29.9 [6] |
| 2007 | $6.4 [6] | $31.5 [6] |
| 2008 | $6.8 [6] | $33.2 [6] |
| 2009 | $7.2* [6] | $35.0* [6] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
[edit] Ideas about why the crisis exists
- The energy industry has kept Wyoming financially sound however, in more recent months the sagging industrial demand for natural gas is pulling the state down into the recession said Government and energy industry officials. In 2008 natural gas averaged $6.56 per thousand cubic feet compared to the current price of $2.75. According to the state's Economic Analysis Division each one-dollar decline in gas prices costs the state roughly $270 million in lost tax revenue. [7]
- Marion Loomis, executive director of the Wyoming Mining Association, said demand for bentonite, which is used in the manufacture of steel, will decline. Coal for steel plants and aluminum plants probably will most likely also decline. Loomis said the state hasn't seen much decline in the demand for soda ash, which is used in the manufacture of glass, of which the automobile industry is a large consumer. [2]
- According to the state’s Consensus Revenue Estimating Group the February 2009 deposit to the General Fund was $89,831,789, putting year-to-date receipts $606,344,061. The current General Fund total exceeds forecasts by 7.3 percent. In January 2009 the surplus was 5.8 percent. [8]
[edit] Proposed actions
[edit] Governor Dave Freudenthal
The State of Wyoming may not have a current budget gap to worry about but in light of declining energy revenue[7] the Governor requested that all state agencies prepare for 5 to 10 percent budget cuts.[2] At the request of state lawmakers and recent revenue numbers Gov. Freudenthal revised his recommended budget to reflect the changes in the state economy. Freudenthal’s January draft outlines an estimated $216 million reduction in General Fund appropriations, and leaves an unappropriated General Fund balance of approximately $32.6 million. His original December budget recommendations included General Fund appropriations of $440.27 million and left an unappropriated balance of $67.38 million. In light of the revisions the following items are no longer recommended: $10.3 million for adjusting state employee salaries to market levels, $10 million to the Wyoming Wildlife and Natural Resources Trust, $67 million for local governments, $20 million for University of Wyoming endowments and $47 million for additional school construction. In regards to the University funds the Governor noted that his recommendations will allow the university to access $10 million in existing but unused matching funds. [9]
[edit] No property tax relief
In an effort to provide residents with property tax relief the Governor urged the funding the Homestead Exemption bill, however, lawmakers in the House and the Senate said that with the state's current economic climate a recent report on energy revenue. Sen. Phil Nicholas said,"We look at the declining revenues, and in light of the fact that we're going to be looking at cuts in the budgets, we're more interested in saving jobs." Rep. Rosie Berger said that even though she supported the tax relief measure, "It just didn't make sense over the last few weeks as we've been reviewing our budget and looking at our (revenue) estimates that we could offer that, and yet continue offering other services to the people of Wyoming." [10] Both the Governor and House Speaker Colin Simpson had made property tax relief a priority for the legislative session. The Governor said,"I can understand why they did what they did, and I don't intend to criticize them for it. I'd rather our revenue picture was different. I think it's just a harbinger of things to come." [10]
[edit] Economic Stimulus Package
Wyoming is expected to receive approximately $498 million from the $787 billion dollar economic stimulus.[11] All told, the federal stimulus plan would create or save 8,000 jobs in Wyoming, based on White House estimates. [12]
For more information on how the federal stimulus funds are being used in the state of Wyoming, visit the state recovery website.
According to preliminary reports Wyoming is expected to receive:
- $26.2 million in Title I funds [13]
- $26.92 million in IDEA funds from the U.S. Department of Education [13]
- $215 million for capital infrastructure and environmental protection [11]
- $210 million for diesel emissions reduction [11]
- $59 million for Federal Medical Assistance [11]
- $14.3 million for Unemployment Insurance Modernization [11]
[edit] Budget transparency
Wyoming currently has no statewide, official spending database online, although legislation that passed in 2009 mandates that a public finance site be operational by no later than January 1, 2010.[14]
[edit] Legislation
- Wyoming House Bill 144 (2009)[14]
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[15]
- Wyoming will receive an estimated $400,407,162.[16]
- The economic recovery website to show how legislators and government officials in Wyoming are spending Federal funds is available here.
[edit] Support for creation of the database
House Bill 144,[14] which requires that a site be operational by January 1, 2010, was supported by the Wyoming Taxpayers Association.[17]
[edit] Public employee salary information
None.
[edit] See Also
Wyoming taxpayer-funded lobbying
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Wyoming Heritage Foundation
- Wyoming Liberty Group
- Wyoming Administration and Information, Budget Division
- Wyoming state legislature
- Wyoming Government spending
[edit] Additional reading
[edit] References
- ↑ Center on Budget and Policy Priorities,"State budget troubles worsen," March 13,2009
- ↑ 2.0 2.1 2.2 2.3 2.4 Associated Press,"Wyoming reports nation's lowest jobless rate," March 11,2009
- ↑ Gov. Freudenthal,"Wyoming must continue to invest and prioritize, Governor says," retrieved April 1,2009
- ↑ Associated Press,"Wyoming loses 800 energy jobs in 1 month," April 1,2009
- ↑ State of Wyoming,"Explanation of Wyoming's budget process," retrieved April 1,2009
- ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 US Government Spending,"Wyoming State and Local spending," retrieved March 31,2009
- ↑ 7.0 7.1 Associated Press,"Falling gas prices hit Wyoming," March 28,2009
- ↑ Wyoming Business Report,"CREG Report: Surplus inches higher," March 20,2009
- ↑ Gov. Freudenthal,"Governor sharply reduces supplemental budget recommendations," retrieved April 1,2009
- ↑ 10.0 10.1 Associated Press,"Wyoming budget negotiators ax property tax relief," March 3,2009
- ↑ 11.0 11.1 11.2 11.3 11.4 Star Valley Independent,"Governor’s office details Wyoming’s share of economic stimulus," March 26,2009
- ↑ American Recovery and Reinvestment Act,"Estimated job effect," retrieved April 1,2009
- ↑ 13.0 13.1 Casper Star-Tribune,"Education stimulus money arrives," March 31,2009
- ↑ 14.0 14.1 14.2 Wyoming House Bill 144, "Transparency in Government"
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State," March 12,2009
- ↑ Wyoming Taxpayers Association, "Legislative Summary," January 30, 2009
| |||||||
