Senate votes to reduce direct distributions

Last week, the Senate passed a bill to reduce direct distributions. 

While appearing on Sheridan Meida’s Public pulse, House District 29 Representative Mark Kinner told listeners that state funding for Wyoming’s counties, cities and towns has for the second budget year in row, been drawn from the Legislative Stabilization Reserve Account (LSRA). The strategy works for this biennium, but cannot continue. The Senate has taken steps to reduce the amount as one way to hold off the States projected budget deficits. 

The Senate passed a bill to reduce the direct distribution which will now proceed to the House.

Through budget cuts from Governor Mark Gordon, the Appropriations Committee, and better revenue than originally forecasted, the committee was able to balance the budget bill for the 2021-2022 biennium.

The victory is short lived. According to the January 2021 CREG Long-Term Revenue Forecast, developed by District 22 Senator Dave Kinskey and staff at the Wyoming Legislative Office, the General Fund, School Foundations Program Account and School Capital Construction Account projects a $985,000,000 deficit by the 2025-2026 biennium.  

On Friday, Jan. 29, the Senate passed legislation to reduce the direct distribution to counties and municipalities for the fiscal year 2021-2022 biennium by $10.5 million.

The Senate voted 23-6 to pass Senate File SF0064, reducing the $105,000,000 distribution to $94,500,000. 

The bill will go to the House for consideration during cross-over, scheduled to begin this week. A draft of the 2021-2022 Supplemental Budget can be found here.