November 16, 2021 |
Governor Mark Gordon has prepared a $2.3 billion budget that he will formally submit to the state legislature next month. The financial wish list for the fiscal year beginning next July is a half-million dollars less than the biennial budget the governor submitted to the legislature in 2019.
The leaner budget comes on the heels of the deep cuts made last year as Wyoming’s economy teetered from dropping energy revenues and the fallout from the pandemic.
In other words, energy revenues have stabilized somewhat because of rising gas prices, but the governor isn’t betting on a recovery. In fact, Gordon expressed concerns about the negative impacts the Biden administration’s energy policies will continue to have on Wyoming.
Governor Gordon said he avoided making further cuts because the full impact from last year’s reductions have yet to be felt across the state. The governor said federal dollars have been used to cushion the blow that’s yet to come.
Governor Gordon said Wyoming State Government is operating on as lean a financial fuel mixture as it has in years. While lower operating overhead produces benefits, it also brings negative consequences. Sometimes it’s in the services that can be provided.
It’s also having an impact on recruiting and retaining state employees, especially with WYDOT and the Department of Corrections. State salaries lag behind not only private industries and neighboring states, but often county and city governments, as well.
Wyoming’s seven percent inflation rate that’s showing up at the gas pump and the grocery store is forcing the governor to take steps to increase state salaries to avoid more essential workers from leaving their jobs for better pay elsewhere.
In response to a question from Bigfoot 99, Governor Gordon said the state is compensating state employees at levels below 2017 market rates.
The “entire enterprise” means all of state government, from the judiciary to the overnight janitorial crew at the Capitol Building. Income and benefit packages for snowplow drivers and prison guards will be examined, too. The Department of Information and Administration is compiling a comparative compensation report in advance of finalizing the budget.
The state’s budget director, David Hibbard, joined the governor during yesterday’s news conference. Hibbard said the report will be ready when state agencies go before the JAC.
Spending for county and local governments is always a touchy issue for Wyoming state lawmakers. The governor will not send up any red warning flags for legislators. They’ll see the same number they’ve seen in recent budgets.
Gordon said he “held to the line at a $105 million, which has been in the budget for the last couple of years.” The governor had a warning for local governments, though, over picking off state employees.
The governor characterized his budget as frugal. Gordon said his administration conserved about $480 million in general funds by using federal American Rescue Plan dollars to bankroll portions of the Department of Corrections and Department of Health where those could be put to use.
The free COVID ride is over and revenue volatility remains likely. Governor Gordon said his budget proposal saves any excess revenues to guard against future revenue challenges, which likely will come from one source — the energy policies of the Biden administration.
The governor said the Biden administration “has been oppressive in adding regulations that will impact Wyoming industries.” He suggested lawsuits over natural resources, such as air and water, as well as legal fights over coal and industries will be the only way Wyoming will be able to maintain its sovereignty in face of the federal power grab.
The governor’s letter to the 66th Legislature is available online along with his detailed budget proposal.
