Governor Gordon Instructs State Agencies to Prepare Deeper Budget Reductions

Wyoming Governor Mark Gordon discussed state agency budget reductions at a news conference Thursday. Sheridan Media’s Ron Richter has the details.

The latest Consensus Revenue Estimating Group report that was released last week stated that falling energy prices and the COVID-19 pandemic could cost the state up to $1.5 billion in revenue over the next two years. Governor Mark Gordon Thursday, said that he’s instructed state agencies to immediately take action to further reduce spending and prepare for deeper cuts in the coming months.

Gordon said that the reduction plan requires state agencies to prepare for more drastic scenarios and be proactive, since the revenue situation could get worse. He said that in April, the first step was taken by imposing a hiring freeze and limiting large contracts.

Governor Gordon said that Wyoming depends on energy production to fund its government, and has for decades, but revenues from coal are down 25 percent and will continue to decline, and projected oil revenues have dropped more than 50 percent in three months. He added that sales tax revenues are also in steep decline.

Gordon said that he will work with the Legislature to look for other ways to fund an appropriate level of government services, including the short-term use of the Legislative Stabilization Reserve Account, the Special Investment Projects Account, or revenue enhancements, as merely cutting services will not be enough to address the scope of the shortfall.