Planning for Wyoming’s Future

February 17, 2014

BY

Senator Eli Bebout

Representative Steve Harshman

Co-Chairs of the Joint Appropriations Committee

President Dwight D. Eisenhower once said, “Plans are nothing; planning is everything.” It’s one thing to talk about making plans for the future, it’s another to take the necessary actions to plan ahead for the things you can predict and, more importantly, the things you cannot.

Fortunately, Wyoming has done just that and, as a result, we have come through rocky fiscal times ahead of the curve.

And it is no accident.

The Wyoming State Legislature worked hard to control the growth of government over the last four years while developing reserves required to maintain services. Their sound judgment has allowed us to stave off severe budget cuts and laid the foundation for smart budgeting that strikes a balance between saving, investing and spending.

It’s through this lens we developed the Fiscal Year 2015/2016 biennial budget that prioritizes Wyoming needs and invests in Wyoming’s people, jobs, communities, responsible mineral development and education. The bill appropriates $3.32 billion of general funds, approximately the same as the previous biennium. The budget does more with less, decreasing the size of government while making focused investments in Wyoming’s infrastructure that create jobs and maintain a high quality of life throughout our communities.

Most importantly, this budget plans for the future. In Wyoming, approximately 75 percent of our budget is derived from mineral production which is subject to world markets, weather and the regulatory whims of Washington D.C. Future dips in revenue are not a possibility, they’re a given. The war on coal is being waged right here in Wyoming’s backyard. The overreach of the Environmental Protection Agency (EPA) has already had detrimental impacts on energy production in Wyoming, and things only stand to get worse.

Wyoming’s private sector bears the brunt of these changing dynamics. Energy producers must frequently acclimate to regulatory and market variations that alter their business models and plans for the future. It is because of their innovation and adaptability that Wyoming has the revenues to fund this budget cycle. The challenge we face is planning today for the next decade. What should we spend and what should we save? Responsible saving has served us well and we need to continue this practice going forward.

To protect against anticipated revenue fluctuations, Wyoming established the Legislative Stabilization Reserve Account (LSRA), commonly referred to as the “rainy day fund,” and the people of Wyoming voted to create the Permanent Wyoming Mineral Trust Fund (PWMTF) as part of the Wyoming Constitution in 1974. The PWMTF was established with the goal of setting aside a portion from the extraction of minerals (severance tax) so we could sustain our way of life and keep taxes low when the minerals are gone.  Further amendments to our Constitution and statutes have allowed up to 55 percent of the fund to be invested in equities. An additional 1 percent of the severance tax was designated to the fund in 2005. Currently we save just over one-third of the severance tax in the PWMTF. We spend the other two-thirds every year to provide services.

In Fiscal Year 2003, the PWMTF produced $59 million in investment income for the state. Last year, it produced more than $366 million. It is through careful planning and discipline that we were able to double the size of the fund between 2002 and 2010. By continuing to save just one-third of the severance tax we can double it again to $8 billion by 2018. Additionally, the budget directs $33 million to the LSRA at the end of the 2013/2014 budget cycle.

Wyoming currently has $17 billion managed by the State Treasurer’s Office, including these constitutionally protected funds (of which we can only spend the interest):

$6.5 billion in the PWMTF

$3 billion in the Permanent Land Fund (created when Wyoming became a State)

$1.6 billion in the Workers Compensation Fund

$557 million in the Hathaway Scholarship Fund

$119 million in the Excellence in Higher Education Fund

Combined, these funds are on pace to generate nearly $1 billion in returns in this biennium to help fund the government. This is a tremendous hedge against an income tax or increased property taxes like most other states have. These investment returns are literally saving our budget.

The Wyoming Legislature has worked hard and made tough budget decisions to protect future generations. We must continue to set good fiscal policy for future leaders and not saddle our children with a legacy of debt and overspending. Through prudent budgeting and disciplined planning Wyoming can make significant investments in our people, our infrastructure, our children and our future.

House Bill 111

By

Representative John Eklund (HD-10)

Representative David Northrup (HD-50)

Representative Mike Greear (HD-27)
Representative Hans Hunt (HD-2)

We as lawmakers come to the Wyoming State Legislature every year as parents, neighbors, friends, co-workers and members of our local communities. We see our role as an opportunity to make life better in Wyoming – to boost our economy, create jobs, preserve Wyoming’s way of life and improve safety.

The safety of our children is a concern for each and every one of us as lawmakers, and as parents. We send our sons and daughters to school everyday with the assumption that they are protected and will return home safely. As lawmakers it is our solemn obligation to ensure our educational institutions are safe and secure.

House Bill 111 (HB 111) has garnered significant attention, and for good reason. Allowing firearms into our schools is not something to consider lightly. It was after careful consideration and consultation with teachers, administrators and parents we concluded doing nothing to enable educators to protect our children was not an option.

HB 111 empowers local school districts to make the right decisions for their communities and schools. It gives our local school boards the authority to permit – or not permit – teachers, administrators and other school employees who hold concealed carry permits to carry firearms in schools with proper training and authorization. This bill gives authority to local Boards of Education to decide the best way to protect their students and educators. It does not repeal gun free zones on school property, but instead allows local boards to decide – rather than state or federal government.

This measure is particularly important in rural areas, which make up the majority of Wyoming communities. In many towns across our state where there is minimal law enforcement to cover vast distances, response times for emergencies can be slow.  Empowering teachers and school administrators to be able to protect their students in the case of an emergency makes sense.

The scare tactics used by critics of this bill are just that. The truth is House Bill 111 expands local control and 2^nd Amendments rights – two values we hold dear here in Wyoming. The bill does nothing to infringe upon current Second Amendment rights and, in fact, expands gun rights in areas where they are currently prohibited altogether.

In Wyoming, we are incredibly fortunate to have not had to endure a fatal mass school shooting. But this should not give us a false sense of security. We have all watched helplessly tragedies unfold across the country. Now is the time for Wyoming to act before an incident does occur. House Bill 111 is a reasonable approach that stands a chance of approval to give local communities the power to decide for themselves the best way to protect their students.

Majority Applauds EPA Stay on Wind River Reservation Decision

February 14, 2014

Cheyenne, Wyoming – Leadership of the Wyoming State Legislature cautiously lauded a decision yesterday from the Environmental Protection Agency (EPA) to enact a stay on a ruling that declared Riverton and surrounding lands are within the borders of the Wind River Reservation.

Last month the State of Wyoming filed a petition asking the EPA to reconsider and also stay any implementation of its decision in December to alter the boundary of the state and Wind River Reservation. In recent weeks the Northern Arapaho Business Council and the Eastern Shoshone also requested a stay.

“I’m pleased the EPA has heeded the Attorney General’s call in issuing a stay,” said Senate President Tony Ross (SD-04). “While the breadth and scope of the EPA decision is still not entirely known, one thing is certain – the overreach of the EPA poses a very real threat to Wyoming’s economy, jobs, energy production and revenues.”

“Bureaucrats in Washington, DC, who have never been to Wyoming, continue to pass rules and regulations based upon ideals and rumors that have no relation to what actually happens here in Wyoming,” said House Speaker Tom Lubnau (HD-31). “The EPA is no exception. While I’m encouraged the EPA has issued a stay, the battle is not over. Wyoming must have the resources it needs to rein in the EPA and protect mineral production.”

While the stay delays implementation of the ruling, it does not change the ruling. Wyoming Attorney General Peter Michael filed an appeal this morning before the 10th Circuit Court of Appeals challenging the ruling.

Earlier this week, the House and Senate approved introduction today of two key measures that push back on burdensome regulations from the EPA. HouseBill 78 (HB78), sponsored by Representative David Miller (HD-55), empowers the Governor of Wyoming, through the Attorney General, to take action against the overreach of the EPA. Senate Joint Resolution 1 (SJ1), sponsored by Senator Jim D. Anderson (SD-2), calls on Congress to require the EPA to respect the primacy of Wyoming in developing guidelines for regulating carbon dioxide emissions, was also cleared for consideration.

House Approves Introduction of Bill to Protect People’s Power During Constitutional Convention

February 13, 2014

The House approved introduction today of House Bill 27 (HB 27), which provides limits on the authority of delegates to a constitutional convention -- ensuring delegates represent the will of the people of Wyoming.  The bill is sponsored by House Speaker Tom Lubnau (HD-31), Representative David Miller (HD-55) and Senator Eli Bebout (SD-26).

Article V of the U.S. Constitution outlines the processes by which the Constitution may be altered, one of which is a national convention. HB 47 would strip a delegate of their authority should they fail to carry out the will of the people of Wyoming.

Chairman Lubnau made the following remarks regarding HB 27.

“For ten years in this body we have worked to minimize the federal government intrusion into the lives of the people of the State of Wyoming. The Feds actions become bolder and more intrusive every year. Like the frog in the pan of water, the feds are slowly turning up the heat on our state government to the point where it will not have any authority … Bureaucrats, who have never been to Wyoming, pass rules and regulations based upon ideals and rumors that have no relation to what happens here in Wyoming. I am always amazed at the audacity. Do they think Wyoming is the way it is by accident?”

“HB 27, if passed by a number of states, would ensure that delegates to a convention called to propose an Amendment to the U.S. Constitution would be faithful to the limits imposed by the states that called it … All this bill does is remove the authority of a Constitutional Convention delegate if that delegate acts outside the authority granted by this body. It is a bill to prevent betrayal of the people of Wyoming if a Constitutional Convention is ever called.”

Wyoming Legislature Takes on EPA

House and Senate Proceed with Measures to Push Back on Burdensome EPA Regulations

February 12, 2014

Cheyenne, Wyoming — The House and Senate approved introduction today of two key measures that push back on burdensome regulations from the Environmental Protection Agency (EPA) which threaten Wyoming’s economy, jobs and revenues.

The House voted to move forward with the introduction of House Bill 78 (HB78), sponsored by Representative David Miller (HD-55). The bill empowers the Governor of Wyoming, through the Attorney General, to take action against the overreach of the EPA. The Obama Administration continues to use the agency to skirt the federal legislative process and enact rules and regulations that have a devastating impact on energy producing states such as Wyoming.

“The war on coal being waged by the Obama Administration has already had detrimental impacts on energy production in Wyoming, and things only stand to get worse,” said Representative Miller. “The EPA continues to thwart the development of coal, natural gas and our access to public lands.”

“Mineral production drives revenues in Wyoming and it’s our responsibility to pushback against the continued threat posed by the EPA,” continued Miller.  

Senate Joint Resolution 1 (SJ1), a resolution requesting Congress to require the EPA to respect the primacy of Wyoming in developing guidelines for regulating carbon dioxide emissions, was also cleared for consideration. The resolution is sponsored by Senator Jim D. Anderson (SD-2) who said the fact this resolution has garnered so much support during a session focused on the budget shows its importance.

“It’s been said that we shouldn't fear failure, but we should fear succeeding at things that don't really matter,” said Senator Anderson. “This matters. The overreach of the EPA threatens jobs, our economy and our way of life.

“This resolution is about protecting state's rights and our ability to determine a lot of our own outcomes,” continued Senator Anderson. “Not only are we responsible, but we’re capable of guiding our own future.  

House Speaker Tom Lubnau voiced support of both measures.

“The decline in mineral development has a direct and immediate impact on revenue streams in Wyoming,” said House Speaker Tom Lubnau. “75% of Wyoming’s revenue comes from mineral production, so ensuring a viable future for the energy sector is our responsibility and essential to a fiscally sound future.”

House Bill 78 has been referred to the House Minerals Committee for further consideration. SJ1 is now pending in the Senate Minerals Committee.

JAC Moves Budget Bill Forward

February 11, 2014

Legislators Make Conservative, Focused Investments to ‘Do More With Less’

Cheyenne, Wyoming -- The Joint Appropriations Committee (JAC) unanimously approved a fair, but conservative budget today that prioritizes Wyoming needs and invests in Wyoming’s people, jobs, communities, responsible mineral development and education.

Members of the JAC voted today on House Bill 1, the FY 2015/2016 Budget, which now moves forward to introduction in both houses. The bill appropriates $3.32 billion, a slight decrease from the previous biennium with nearly 300 fewer state employees. In addition, the proposed budget does not grow the size of state agencies.
 
“We are fortunate for the sound judgment of our predecessors, who worked to control the growth of government over the last four years while developing reserves required to maintain services,” said Senate Appropriations Chairman Eli Bebout, “I believe this budget strikes an appropriate balance between current needs and long term planning.”

The Governor’s budget left $208 million at the discretion of legislators. The JAC’s budget leaves $27.3 million for discretionary appropriations and allocates $173 million into reserve accounts designed to sustain future budgets, principally K-12 education.

"Through sound budgeting and disciplined planning Wyoming can make significant investments in our people, our infrastructure and our children,” said House Appropriations Chairman Steve Harshman. “Wyoming consistently ranks as one of the best run states in the nation. This budget reflects Wyoming values of responsibility, community, family and opportunity. There are uncertainties as 75% of our budget is derived from mineral production which is subject to world markets, weather and the regulatory whims of Washington D.C.  However, this budget continues our tradition of prudent planning and a balance among saving, investing and spending."

Major highlights from the 2014 Budget Bill include:

• New construction and major maintenance for Wyoming’s Community Colleges and the University of Wyoming  -- $102 million
• Creating a new fund, the School Foundation Reserve Account, to protect the School Foundation Program from loss of projected mineral revenue -- $100 million
• Capitol renovation and restoration -- sets aside $37 million
• Funding for cities, towns and counties -- $175 million
• Modest compensation increases for K-12, higher education and state employees -- $81.2 million
• Mandatory Medicaid coverage of $28.5 million and reduction of the developmental disabilities waiting list to 18 months ($10.1 million) 

Based on the Legislature's historical practice of establishing reserves to sustain current levels of spending, the budget bill contributes to the growth of the Legislative Stabilization Reserve Account (LSRA), commonly referred to as the “rainy day fund,” while the Permanent Wyoming Mineral Trust Fund (PWMTF) also continues to grow. When Wyoming first established the PWMTF, it was with the goal of planning for the future and anticipating declines in revenue due to an increase in burdensome regulations by the federal government.

“The Legislature’s dedicated investment into those permanent funds has allowed us to sustain current levels of spending during difficult times. It’s our responsibility to continue to be forward thinking and build on this smart investment,” said Chairman Bebout.

Both the House and Senate are schedule to tackle the budget next week with introduction on Monday and Tuesday, second reading of amendments on Wednesday, and third reading of amendments on Friday. 

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