For my final legislative report, I will briefly summarize the results of the supplemental budget adopted during the general session of the 65^th Legislature.

The original budget for the 2019/20 biennium was adopted during the budget session held in February 2018. There were some additions to that budget in the recently completed general session. With these changes the total appropriations from the general fund for the 2019/20 biennium stands at $3.061 Billion.

Recognizing the reduction in revenue from the minerals industry over the past few years, this amount is $452 million less than the total appropriation for the 2015/16 biennium and about $430 million less than 10 years ago. Most state agencies have experienced reductions in funding of 10 percent or more over the past four years. There are some who believe that state funding should be slashed even more. Yet, we want to drive on well-maintained highways. We must provide for an increasingly aging population. We want good schools, and we must provide adequate funding for counties and towns. I believe that further cuts would begin to seriously erode these and other state government functions that we all have grown to expect.

I am hopeful that the government efficiency efforts will yield results which will enable us to continue to provide essential services in a more efficient and less costly manner.

With the modest rebound occurring in our oil and gas industries, it is projected the general government side of the budget will be in pretty good shape. Our main “rainy day” fund, the Legislative Stabilization Reserve Account (LSRA) will end the current biennium with a balance of $1.67 billion. It is projected to grow to $1.73 billion at the end of 2022 and to $1.78 billion at the end of 2024.

The future of funding for our K-12 education system is much more discouraging. We will burn through most of the surplus in our school foundation account this biennium and will face a deficit of about $261 million by 2022 and $513 million by 2024.

It is true that our education cost per student is much higher than our surrounding states. Some, but not all, of that cost differential is a function of our inability to take advantage of any economies of scale. Educating a small and widely dispersed population is just going to be more costly.

While our small population is a disadvantage at times, it is also a great blessing. Because of our small population a very large percentage of our young people have the good fortune of participating in these many events.

Despite some challenges, we have the privilege of living in a great state. I am hopeful that we will find solutions which retain and enhance all the good things we enjoy in Wyoming and keep our tax burden relatively low.