Wyoming is projected to experience a significant shortfall in education funding over the coming years, with a $686 million deficit forecasted in the state’s School Foundation Program (SFP) by the 2029-30 biennium, Yahoo News reports.
The estimate, released by the Legislative Service Office, highlights long-term concerns about the balance between education expenditures and revenues.
The SFP is Wyoming’s primary funding source for K-12 public education. As of July 1, 2025, the account held $765 million, but that balance is expected to decline sharply to $100 million by mid-2028, with expenditures projected to continue outpacing revenues. Once the SFP drops below $100 million, it is supported by the state’s Legislative Stabilization Reserve Account, commonly known as the “rainy day fund.”
Rep. John Bear, R-Gillette, co-chairman of the Joint Appropriations Committee, raised the alarm during a recent committee meeting, calling the trajectory “significant.” Bear and three other legislators wore red suits to symbolize the projected shortfalls and drew attention with custom bobbleheads, intended to keep the issue visible throughout budget discussions.
“We need to be aware of it as we’re making decisions,” Bear said. “It’s just a matter of making priorities so that we ensure that we’re financially sound.”
The SFP isn’t the only concern. The general fund — the state’s main spending account — is also forecasted to run modest deficits: $17 million in 2027-28 and $10 million in 2029-30. However, the forecast does not account for potential capital gains from state investments, which could mitigate some of the pressure in future years.
Governor Mark Gordon acknowledged the fiscal pressures but noted that Wyoming does not currently face an overall budget shortfall.
“The fiscal stress stems largely from recent legislation that reduced local revenues while increasing state obligations,” Gordon stated.
He also warned of growing uncertainty in federal funding, which contributes about 20% of Wyoming’s total budget.
The education budget outlook is further complicated by this year’s recalibration of the state’s school funding model, a process required every five years. Although a district court ruling earlier this year ordered the inclusion of additional elements in the model — such as mental health services, school resource officers, and student technology — the state is appealing the decision.
Rep. Scott Heiner, R-Green River, who co-chairs the Select Committee on School Finance Recalibration, said the projected deficits have not yet factored into the recalibration discussions.
“At this point, to say we have to [follow the court order], I don’t think I would say that,” Heiner explained, emphasizing that the ruling is not finalized.
Meanwhile, lawmakers continue to examine other policy impacts on the state’s education finances. Property tax relief measures passed in recent sessions, including a 25% exemption on primary residential structures (via Senate File 169), have affected school funding. Bear acknowledged the impact but suggested offsetting the lost revenue through increased commercial or industrial property taxes.
Looking ahead to the 2026 budget session, both lawmakers and state officials are signaling the need for a more conservative approach. Bear emphasized that the Legislature’s decisions in recent years have contributed to the trend and must be reevaluated.
“There’s pressure down on our revenues, and so we want to keep that in mind,” Bear said. “It’s the rate of increase [in the deficit] that’s most concerning.”
