August 27, 2020 |
The reckoning with Wyoming’s economy began in earnest yesterday. In somber and sometimes sad tones, Governor Mark Gordon unveiled more than $250 million worth of cuts, the first of three whacks at the state budget to balance a general fund shortfall of $1 billion.
The impacts will be felt across Wyoming, the governor said. No agency will escape the pain, and the state’s five biggest departments will bear two-third of the cuts.
The governor called the cuts “devastating,” but the pain is only likely to get worse. More cuts are coming, he warned. This is just phase two of dealing with revenue shortfalls.
The first phase came earlier this summer when Gordon announced a hiring freeze and a halt to all new government contracts. Yesterday’s announcement focused on the first actual cuts to state jobs and programs. Even tougher decision will come during next year’s legislative session.
K-12 schools are not beyond the reach of Wyoming’s economic realities. Funding for the state’s schools faces a $500 million shortfall, the governor noted. Gordon said a legal review of his authority provided no clear answers as to what the governor’s duties are concerning executive branch control over the educational budget.
Despite the ambiguity, cuts still need to be found, thus Gordon is turning to school districts for help.
New tax revenues are an option to the general fund shortfall. Governor Gordon noted that any tax proposals will likely fail until lawmakers and residents are satisfied that the state is out of money. Some think the state has plenty of savings. Others think the economy will rebound.
The governor said making the state’s financial picture more transparent and understandable is one of his goals. Gordon also said lawmakers need to take a longer view than just two years when they prepare the budget.
In addition to the cuts announced yesterday, state agencies have already developed proposals on further reductions to services.
The Governor also is working with legislators on other options, all of which require legislative action. The agency by agency budget cuts announced yesterday are detailed online at the Wyoming Administration and Information website.
Pictured above: Governor Mark Gordon during Wednesday’s press conference live stream. Courtesy Wyoming PBS.
