Heading into Legislative Session 2020
The 2020 Legislative Session is only a couple of weeks away. In preparation for this budget session the Joint Appropriations Committee (JAC), which I am a member of, met for two weeks prior to Christmas and an additional two weeks concluding on January 17th to review Governor Gordon’s biennial budget and capital construction request. To help us better understand the budget and the exception requests each state agency and the judicial branch presented their budgets to the committee. After hearing the agency testimonies, we went back through the budget, the K-12 School Capital Construction bill, the State Capital Construction bill, and the Local Government Direct Distribution bill. It is a lengthy process which had over 850 documented motions from the committee on the bills that resulted in 200 substantive revisions to the bills. The result will be the creation of the Budget Bill, K-12 School Capitol Construction bill, the State Capitol Construction bill and the Local Government Direct Distribution bill that will be presented to the House and Senate during the legislative session.
I was pleased with the efforts the House and Senate Appropriations Committee members made together in getting these bills prepared. Our state revenues are still less that what we have been accustomed to for state government which creates some significant challenges as we try to provide the services our citizens expect from state government.
The following are some of the actions taken by the Joint Appropriations Committee:
1. Reduced the Governor’s recommended General Fund (GF) appropriations by more than $120 million dollars.
2. Because the Governor has limited ability to transfer or access funds he was required to make a number of the agency requests “effective immediately”, but the JAC was able to remove all of those requests except for a warranted few an make them effective July 1, 2020 consistent with biennial budgeting.
3. The JAC recommended approving a deposit to the Legislative Stabilization Reserve Account (LSRA) or “rainy day” account from the Budget Reserve Account (BRA) of approximately $89 million and allowing and additional $50 million for appropriations by the legislature during the legislative session if required, or it too can be put into savings.
4. The JAC recommended diverting the one percent severance tax into a “One Percent Severance Tax Account”.
5. Revised the distribution for revenue from severance taxes of federal mineral royalties in excess of the January 2020 CREG forecast to provide a greater share to the K-12 school district funding accounts.
6. Reduced the computer hardware and software exception requests by agencies in half saving $15 million dollars.
7. Denied the $20 million dollar request for state employee compensation.
8. Reduced General Fund appropriations by $13 million to the Business Ready Communities Program, replacing those funds with mineral royalty grant funds.
9. Using Highway funds to cover upgrades to WYO-LINK, the state’s emergency communications network.
10. Funding the projected increase to the Department of Health’s Long Ter Care Wavier one year at a time to insure a more accurate figure is provided for appropriations.
The JAC added funding for:
1. $4 million dollars for scholarships and programs associated with the new Wyoming Works Program to help train and retrain our workforce.
2. $12 million dollars to provide a 20% match for a Department of Energy research on an oxy-fuel pilot program.
The committee approved a $10 million dollar appropriation to the Wyoming Wildlife and Natural Resource Trust. $6 million for fund existing projects and $4 million to be added to the Trust corpus.
K-12 Operations:
1. The Committee by a divided vote approved the Governor’s recommendation for a K-12 external cost adjustment of $38.7 million dollars.
2. The Committee approved funding to the K-12 model to account for the increased enrollment of students statewide of an additional $28.4 million.
Local Governments:
1. The JAC ADOPTED THE $105 million biennial funding level for distribution to cities towns and counties with a change the base distribution giving the small communities of 35 people or less $15,000 up from $10,000 distributed previously.
School Capital Construction:
1. $19.2 million for construction of Slade elementary in Albany County.
2. $8 million for the construction of an auditorium and the Riverton High School.
3. Reduced funding for K-12 security projects by $10 million.
4. Reduced funding for overall component projects by $4.7 million.
5. Reduced “other” budgets requests by $4.3 million.
6. Added $2.5 million for the design of a new K-12 school in Ten Sleep.
State Capital Construction projects funded from “one time” funds in the Strategic Investment and Projects Accounts (SIPA).
1. $25 million for the redirecting energy and coal commercialization.
2. Denied $14 million for funding a women’s honor camp.
3. $12.5 million one-to-one matching funds for UW athletic facilities.
4. $12 million one-to-one match for the UW College of Law.
5. Reduced funding for the Honor Farm administrative building from $7.6 million to $5 million.
6. $5.6 million for the demolition and refurbishment of the Tonkin building in Riverton.
7. $5 million one-to-one matching funds for Northern Wyoming Community Cllege manufacturing facility.
8. $4 million dollars for costs associated with the abatement of asbestos containing material at the Wyoming Life Resource Center.
9. $4.5 million for the Capitol Square Preservation Account.