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Wyoming Lawmakers look for best uses of $1.2 billion surplus
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New schools. A big bonus for teachers. New water and sewer systems. While most states grapple with budget deficits, Wyoming is happily debating what to do with a $1.2 billion projected surplus, and those items and more are on the table.
"It’s a phenomenal opportunity to do things that the state has only dreamed of for decades," Gov. Dave Freudenthal said.
The windfall represents three-quarters of the state’s current General Fund spending. By comparison, a surplus in California of the same proportion would be $59 billion.
Despite a slowly improving economy, 30 states are projecting combined deficits of $39 billion to $41 billion, according to The Rockefeller Institute.
Wyoming, though, has enjoyed a revenue resurgence, primarily from higher oil and natural gas prices, leaving officials with spending and saving options they haven’t seen in their lifetimes.
"Severance tax states – West Virginia for example, Wyoming, New Mexico, Oklahoma and Louisiana to some extent – have done better than most states," said Arturo Perez, fiscal analyst for the National Conference of State Legislatures.
The big surplus comes as Wyoming lawmakers convene their budget session on Monday. Their biggest question is deciding how much to spend and how much to save.
"We don’t have money to throw away, but we do have money to allocate to real needs," Freudenthal said.
The needs include a prison expansion, rising Medicaid costs and a $500 million backlog of public school construction and repairs.
Jami Nicotera, a Kemmerer homemaker, suggests spending a portion of the surplus on teachers.
"I’m not talking about computers and books," she said. "If nothing else, a bonus for educators that directly deal with our students – not administrators. Our kids are our future."
Connie Weitzel, of Riverton, said the state faces many pressing needs, including education, "but then there are so many senior citizens that need help with their medical and prescriptions."
Senate President April Brimmer Kunz, R-Cheyenne, cautions that with a large surplus come higher requests from state agencies and groups looking for a bigger slice of the pie. She suggests legislators focus on fixing schools and state buildings and helping local governments.
"We have a lot of failing water and sewer systems around the state and we need to take care of it while we have the money to do so," she said.
Rep. Wayne Reese, D-Cheyenne, House minority floor leader, agrees with the need to address deferred maintenance.
"Anyone that owns a home can tell you it’s a lot cheaper to fix the roof today than it is to wait and fix the roof and the interior water damage later," he said.
Still, spending for ongoing government operations would increase 19 percent, or $285 million, under Freudenthal’s budget proposal.
Rep. Randall Luthi, R-Freedom, House majority floor leader, said that while Wyoming’s finances are in much better shape than most states, he is concerned his colleagues might be harboring a false sense of security. Minerals prices can drop just as rapidly as they have risen, he cautions.
He hopes the Legislature approves a plan to put more money into the $2 billion Permanent Wyoming Mineral Trust Fund, interest earnings of which help defray the cost of government. By law, about $197 million of the surplus will flow automatically into the fund. Luthi and others want to contribute another $100 million to the fund.
"If we don’t put at least $100 million into the trust fund, we’re setting ourselves up for a tax increase in the next few years," he said.
Freudenthal does not want any more money than necessary put in the permanent fund. Once the money is placed in the fund it cannot be withdrawn.
The upcoming legislative session will also include debate on wolf management, graduated driving licenses for teens, tort reform, school prayer, design of the state quarter, driving while using cell phones, a state lottery and removal of sales tax on food.
Budget matters, however, will be on the front burner, albeit without the balancing pressures of the past two decades.
"I am honestly excited about it," Kunz said. "I think it’s a wonderful time to be president of the Senate. I feel so lucky."
Copyright © The Billings Gazette, a division of Lee Enterprises.
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