The 2020 Budget Session of the Wyoming Legislature ended late on Thursday, March 12. Although this was less than three weeks ago, it seems much longer because of the health crisis sweeping across our state, nation and the world.

This and other recent events will have a tremendous impact on our recently enacted state budget. Our revenue projections were based on oil prices of about $60 per barrel. Current oil prices are around $20. It is estimated that our state revenues decrease about $12 million for every dollar decline in oil prices. Natural gas prices are well below the amounts used to forecast our state revenues. The economic slowdown and the stock market slump will adversely impact the investment earnings on our savings accounts. In addition, the decrease in economic activity will severely decrease sales tax revenues. The combination of all these factors will cause a precipitous drop in state revenues and will likely necessitate a special legislative session sometime in the next few months.

On the bright side, Wyoming will soon be receiving $1.25 billion as a result of the recently enacted federal economic stimulus bill. Wyoming is also fortunate to have over $1.57 billion in our “rainy day” fund.

All of these recent developments have certainly overshadowed much of what took place during the budget session. We all hope that the illness and death as wells as the painful economic fallout from the coronavirus pandemic will begin to abate in a few weeks. With that hope, I would like to report on a few of the changes enacted during the recent legislative session.

There was a total of 398 bills introduced. Of these, 167 survived the process and were enacted into law. The Governor has vetoed a few of these.

Of course, the main purpose of the Budget session is to approve a biennium budget authorizing state spending for the two-year period beginning July 1, 2020. The final budget approved by the legislature and signed by the Governor authorizes spending from the general fund and selected reserve accounts of $3.302 billion. This compares to the 2015-16 biennium budget of $3.887 billion – a decrease of $585 million. The recently approved budget is also a decrease from the most recent biennial budget of $226 million.

Funding for K-12 education is not part of the general fund budget. Budgeting for K-12 education is generally done on a school year basis rather than a biennium basis. The budget approved for the school year beginning in the fall of 2020 is $1.555 billion. This is an increase from the current budget of about $50 million.

Education funding is allocated by school district under a block grant funding formula and is designed to deliver a uniform education “basket of goods” to all students in the state. The block grant funding formula will undergo a recalibration process in the next year. There is also some momentum to reconsider what should be included in the “basket of goods” as it has not been revised for many years.

New cases of Covid-19 infections are occurring daily. Because this situation is evolving rapidly, the legislature has a weekly conference call with the Governor. I believe we are blessed to live in Wyoming where “social distancing” is much easier with our sparse population. I am optimistic that we will soon begin to slow the spread of this virus. I also believe that once that happens our economy will rebound relatively quickly. I have been inspired by the many acts of kindness and helpfulness shown by so many of the good people of Bridger Valley. There is no need to panic.

As we continue to implement wise health practices and show care and concern for our neighbors we will be okay.