Posted on 01/15/2003 8:24:24 AM PST by Theodore R.
CHEYENNE -- The state's surplus grew by $33 million after revenue projections were boosted for mineral taxes, leaving $169 million in the coffers for the Legislature's two-month general session which begins Tuesday.
If lawmakers agree to the governor's recommended spending, in addition to a statutory amount that must be set aside, the surplus would fall to around $60 million, said Rep. Phil Nicholas, R-Laramie, co-chairman of the Joint Appropriations Committee.
But, he said, that does not include several bills being drafted with hefty price tags, including some health and social services measures and one revising the K-12 spending formula.
"If you're adding any of your wish list needs, $60 million goes pretty fast," Nicholas said.
The Consensus Revenue Estimating Group, or CREG, comprising state budget and economic officials, released the updated figures Monday.
Severance tax revenue was revised upward $34 million for the remainder of the 2003-04 biennium because natural gas is expected to fetch $2 per thousand cubic feet (mcf) in fiscal year 2003, up from an earlier estimate of $1.50.
"While current prices are in the $2.80/mcf to $3.00/mcf range, last year's abrupt price drop in April raises concerns that a similar drop could occur in 2003 as Wyoming gas continues to be plagued by extreme price differentials," the CREG report said.
"However, even with extremely low prices for several months last year, Wyoming gas still managed to average $2.00/mcf for the year, and is expected to average that level for the next six months."
Expected oil prices were revised upward from $21.50 a barrel to $22 for 2002 based on year-end data and from $19 to $20 for 2003.
The report boosted expected federal mineral royalties by $25.2 million, with $8.6 million going to schools and $17.3 to the Budget Reserve Account which, like the General Fund, is available to the Legislature.
Projections of investment income from the Permanent Wyoming Mineral Trust Fund were lowered by $27 million and from other investments by $8 million.
Poor returns on equities continue to hurt the state's portfolio.
"Currently, the Treasurer's Office is earning 6.5 percent on the fixed portion of the portfolio, but after accounting for the equity portion, the overall net return is expected to be closer to 4 percent," the report said.
The budget forecasters, however, are optimistic for a 5 percent return for the second half of the fiscal year.
Inheritance tax income was revised upward by $2.4 million while sales and use tax forecasts were left unchanged.
Going into the session, the Legislature has a General Fund balance of $39 million, reserves of $120 million and $10 million left over in the School Foundation Program.
Lawmakers will face tough decisions in the upcoming eight weeks, Nicholas said, including serious examination of a possible new tax.
"It would be nice to have supplemental revenue, or you have to decide to freeze government where it is," he said.
The oil abd gas industry made it happen, despite enviro/nazi attempts to stop drilling activity.
Oil and gas contributes heavily to both surpluses.
Wouldn't be surprised to see TRichardson spend it all though.
Damn shame(BTW-I just got the paperback version of "Pale Horse Coming"-can't wait to read it this weekend).
Even though a former clinton appointee as pointed out above you must remember that for the most part democrats in Wyoming would be considered moderate to radical Republicans in, say, the northeast of the country. Also, the legislature is very heavy Republican so there is a balance.
The Republican nominee couldn't get over some shady business propaganda that was out about him and Wyoming does have a history of electing dems on a regular basis.
Our newly elected Gov. in Wyoming (Freudenthal) just came out for a property tax increase to help the schools. Hopefully, the heavily Republican State House & Senate will squelch that. Although very conservative, Wyoming has a history of putting Democrats in the Governor's seat. Many here say it's so the Republican controlled Assembly doesn't get too cocky. I think it's morbid curiosity, kind of like a cat playing with a dead bird.
No he was term limited. The bottom of the state is strong democrat. The northern two thirds is strong Republican. Most of the population is in the bottom of the state. (Along I80.) The Republican is from the northern part of the state. The Democrat from Cheyenne. Both Party and location affected the vote.
The new Gov. will try to do like Davis. (Spend every dime and then some.)
With Daschole and Johnson being your Senators, I don't blame you.
You and me both. I flew into Sioux Falls two years ago and was amazed at how big its gotten.
Having been raised in NM, lived in CO, I can appreciate the yearning for wide open plains. Here in N. MI, there are so many trees you can rarely see for miles, which I sorely miss.
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