Watching the livestream this morning. Gordon right now presenting a high-level perspective on his $3.2 billion budget for the next biennium.
A lot has been covered, but this is the Legislature's first opportunity to ask questions.
A lot has been covered, but this is the Legislature's first opportunity to ask questions.
CREG doesn't show a precipitous drop over the next few years, but we are "on a glidepath" downward.
"This budget is about how we reshape government to be more efficient and effective moving forward," Gordon said.
"This budget is about how we reshape government to be more efficient and effective moving forward," Gordon said.
Chairman Bebout asking first. Said the Governor is "spot-on" in taking care of needs, but acknowledging spending could be lower. Said any increase in spending is not the best, and asked about slowing that growth. Wants emergency funding to truly be emergency funding.
Gordon re-mentioned his drastic cuts to capital construction, and -- like he told us last week -- wants to implement a lot of the Alvarez and Marsal study and consolidate some functions in government, particularly with the state's centers of excellence.
On this budget, Gordon said we need to be sure we understand what inflation will do to it, and make changes where we can -- and that we need to focus on appropriate programmatic cuts, rather than across-the-board.
Covered a little in my preview: trib.com/news/state-and…
Covered a little in my preview: trib.com/news/state-and…
Adds we will fund education largely by tapping into the LSRA, but he wants to end that practice soon and have it exclusively be as it was intended: an emergency fund.
Bebout asking about leveraging federal funding, which he said could either be good or bad. (i.e. if we cut funding at the state level, we miss out on federal funding.)
Our biggest source of federal funding is minerals, as explained here. trib.com/news/state-and…
Our biggest source of federal funding is minerals, as explained here. trib.com/news/state-and…
Gordon said that we can't always look at this as "free money." One example is in the Military Dept., particularly around construction. (Which we can't afford long-term.)
Gordon notes two studies: one showing a willingness to be taxed more for education, and another showing people's reluctance to actually pay more sales or property taxes.
Enter his Power Wyoming initiative, which he said could help WY be more strategic about its tax policy.
Enter his Power Wyoming initiative, which he said could help WY be more strategic about its tax policy.
Said we want to show Wyoming is open for business, but we still need minerals -- which relies on ensuring they can be
1) competitive with sources elsewhere and
2) have access to markets.
1) competitive with sources elsewhere and
2) have access to markets.
Early on, Bebout sounds like he's on a similar wavelength as the governor from a cost-saving ethic.
"Things are tough for the state of Wyoming," Bebout said. "But I see that your attitude is the same as mine, and that is that the cup is half-full."
"Things are tough for the state of Wyoming," Bebout said. "But I see that your attitude is the same as mine, and that is that the cup is half-full."
We haven't focused too much on education just yet, but expect those discussions next week. (The initial DoE hearing is Dec. 19.)
Chairman Nicholas asking about the gov's thinking on state hc costs -- which isn't touched on in the budget. Said we're now facing a fiscal cliff on that front and, per our reporting, is in a cash deficit.
"What do we need to do to make sure this doesn't happen again?" he asks.
"What do we need to do to make sure this doesn't happen again?" he asks.
Gordon said the state is no longer the major holder of these policies. Said the state has money right now to cover those premium increases, but may have to make rate increases over the next several years just to break even.
Nicholas said it's probably going to have to be led by the Governor to decide what changes need to be made -- much of that could come up next interim.
Whether just rate increases -- or a reduction in the offerings of the state's EGI program -- TBD.
Whether just rate increases -- or a reduction in the offerings of the state's EGI program -- TBD.
Revenues will be short in '23-'24, making it a "now or never" situation for those looking to be funded under this year's cap-con budget, Nicholas said. Asked about the Gov's thoughts on what got funded and what didn't.
Brought up his effort to revamp the state building commission and put every project through a special process to prioritize what should be funded, taking testimony & ranking each proposal from most to less important.
Recs from governor's office will be in a lump sum, and then applying those rankings to the amount of funding he granted. The biggest area this was seen was in the UW budget and the community colleges, both of which had... different fates this fall. laramieboomerang.com/news/local_new…
Covering the importance of budget transparency in understanding our revenue declines and, as opposed to reacting with reductions, we can be more conscious about how we're spending. Cutting CapCon, he said, gives us "breathing room" for future projects.
Bebout asking about Gordon's perspective on unrealized capital gains' role in the budget.
Gordon said that's a "fool's errand," particularly for funding ongoing programs. We're a long-term investor. If we do that just for the benefit of this yr, we're basically kicking the can.
Gordon said that's a "fool's errand," particularly for funding ongoing programs. We're a long-term investor. If we do that just for the benefit of this yr, we're basically kicking the can.
Plus... trib.com/news/state-and…
Said he believes Wyoming needs to offer "more competitive" pay to state employees.
Adds that the state's pension fund is another important piece -- still top-third in the nation -- but has "some way to go."
Adds that the state's pension fund is another important piece -- still top-third in the nation -- but has "some way to go."
Said that the state -- while facing challenges -- is "not going to go broke," and that we don't need to match a private model in managing things like HC: all we need to do is break even, he said.
Nicholas still pressing for governor's input on how to get to that point. Bebout talking about benefits for volunteer firefighters as an example to consider.
Moving on, Gordon said this budget not only considers energy, but tourism as well. Didn't direct a lot of funding there, but noted the industry expressing its willingness to tax itself, highlighting the tax structure of places like Las Vegas.
It's up to the House to look at things like a lodging tax, which Gordon said he's "willing" to consider. Also mentioned his efforts to change how the WBC works, offering more in the way of support rather than dollars.
Also: export potential and blockchain as revenue sources.
Also: export potential and blockchain as revenue sources.
Asked by Kinskey about workforce development, which wasn't highlighted much in the budget.
Gordon said he was waiting for more concrete proposals through the community colleges and the Wyoming Works program, and should be reflected there.
Gordon said he was waiting for more concrete proposals through the community colleges and the Wyoming Works program, and should be reflected there.
Gordon said that it's not an issue of the program not developing in a way he likes, but that it's so new that at this point, he's treating it as a work in progress.
Rep. Schwartz mentions we've talked a lot about expenditures, but not so much about revenues. Asked about what else the Governor would support.
Gordon said he's been consistent that the people of Wyoming don't want new taxes, and that we need to exhaust all options on spending.
Gordon said he's been consistent that the people of Wyoming don't want new taxes, and that we need to exhaust all options on spending.
Like Gordon told us, he wants people to understand what they're asking for when they continue to not want taxes: i.e. what it means to do more with less.
"Do I see anything on the table this session I'm willing to look at beyond a lodging tax? I'm not clear," he said.
"Do I see anything on the table this session I'm willing to look at beyond a lodging tax? I'm not clear," he said.
Adds we need a comprehensive discussion of this moving ahead. Both on the spending and revenue side.
Bebout now talking about ad valorem tax revenues, and wanting to get those on the same pay schedule as other royalties.
