October 27, 2022 |
Wyoming is in better financial shape than expected, thanks in large part to the spike in energy prices.
The October CREG report shows that all major state revenue streams exceeded the January 2022 CREG forecast. Actual General Fund and Budget Reserve Account revenues combined exceeded the January forecast by $329 million combined.
Sales and Use Taxes were up $140.2 million. Severance taxes were up almost $118 million. Investment income increased $32 million. All other income was up about $38 million for the total of $328 million combined.
Governor Mark Gordon said he is heartened by the report but said the gains should be into perspective. The governor said it’s not a time to go on a spending spree as Wyoming still faces headwinds from Washington.
“This welcome news is not cause for excessive celebration or reason to relax our fiscal conservatism,” the governor said in a statement. “We must remember that there has been a lot of volatility in our mineral revenues over the past few years, and that remains a concern for our future.”
The increases over the January 2022 forecast revenue were primarily driven by:
• Higher natural gas and oil prices;
• Dramatic growth in known, non-mineral assessed valuations for calendar year (CY) 2022, supplemented by one additional year of higher-than-average growth;
• Robust year-over-year growth in sales and use tax collections; and
• Higher investment earnings due to increasing yields.
The CREG October forecast, as it always, comes as the Governor is preparing his budget for the legislature’s consideration. He’ll release his interim budget proposal on November 18th.
