Wyoming Delivers State Revenue Forecast
Wyoming Governor Matt Mead held a press conference Monday to discuss the latest update from the state’s Consensus Revenue Estimating Group (CREG), which delivered a projection used to help shape the state budget. The report shows a general fund shortfall of approximately $156 million for the remainder of the 2017/2018 biennium. However, the governor’s office pointed out that $104 million of that is due to a statutory requirement to refill a savings account leaving $52 million as the more accurate figure for the shortfall.
The State of Wyoming forecasts its severance tax revenues will be down another 19% for 2017-18, registering at $1.073 billion, down from 2015-16’s $1.321 billion, according to the state’s newest revenue projections. The report puts severance tax revenues mostly flat in the $1.07 billion-$1.08 billion range through 2022. From a high of collections of just under $2 billion in severance tax revenues for 2007-08, the state expects to receive about half of that amount from 2017-2022.
Wyoming’s latest revenue projections released Oct. 24, 2016
Falling severance taxes is mainly due to the commodities downturn in oil and other minerals, combined with slowing demand for coal and falling coal production, have already forced budget cuts.
Mineral production assessed valuation in Wyoming
“The cuts made by the Legislature during the Session and the cuts I made in June have put us in a manageable position,” Governor Mead said. “People understand we need to tighten our belt as we make these difficult cuts. But they may not understand that we make these cuts as we keep filling savings accounts.”
“There is an appropriate amount of the Rainy Day Fund that can be used during this time to ensure we take care of our roads, healthcare and other important services. Additional cuts to the Departments of Health and Corrections, for example, will be very difficult,” Mead said. “My hope is that we can work closely with the Legislature to smooth out this downturn by using some of our savings – especially as those funds are growing.”
