December 9, 2022 |
Governor Mark Gordon spent over an hour before the Joint Appropriations Committee Thursday morning presenting his vision for managing a rush of one-time state revenues during a time of economic uncertainty. The governor described the upcoming year as a pivotal point in state history.
The splash of revenues in state coffers has produced a $913 million surplus in the general fund surplus after dollars appropriated by the legislature have been distributed as required. The governor cautioned that the windfall is likely a one-time opportunity. The increased revenues are from two sources primarily: Unprecedented federal spending in the form of post-Covid grants to the state. The other is a surprising rise in commodity prices.
Governor Gordon said the increase in commodity prices, as well as the way Washington wants the grant money spent, is a double edge sword. The flush of money, especially in the energy sector, is producing inflationary impacts in the 10-16% range that are dragging down the economy.
In response to both the positive and negative impacts from the flush of money, the governor is proposing that half of the $913 million surplus be put into long-terms savings to offset what he described are revenue challenges certain to come. He provided the JAC with a roadmap on how and where the money should be saved.
Governor Gordon also presented spending increases. For instance, he is recommending $13.7 million be set aside just to deal with inflationary impacts on state government that could cause some agencies to blow through their budgets.
The Governor is also requesting additional appropriations to local governments in two separate tranches. He mentioned Rawlins specifically.
The governor said having the money to help Wyoming communities respond emergencies is important.
The Governor’s wish list of increased spending in his supplemental budget request includes funding for several areas he said are important to maintain safe and healthy communities, including:
• $5 million to address mental and behavioral health service gaps
• $7.8 million to harden cybersecurity
The governor also wants to increase funding for the state prison system. He is proposing spending more than $2 million be spent to increase bed capacity at local community corrections programs around the state.
A footnote in the Governor’s budget outlook states that the Wyoming Department of Corrections will appear before the JAC to request a $3.1 million budget increase for pay raises to security officers. Low pay at the prison is aggravated by a lack of suitable housing, the footnote continues. Because of the staffing shortage, the WDOC spends approximately $410,000 in overtime for officers and WSP staff.
The governor said that House Bill 53, which includes another $1.3 million in continued funding for the WDOC, will also help with staffing situation at state prisons, the governor said.
The governor gave the JAC a lot to digest Thursday. Co-Chair Bob Nicholas thanked the governor for the “boldness and creativity” of his budget proposal, and promised that the committee would give it a fair hearing.
During his presentation, Governor Gordon said he would supply the lawmakers with letters providing more information on specific areas of proposed requests.
The 2023 General Session begins January 10.
