Savings Beat the Rigs: Wyoming’s Investments Now Out-Earn Minerals

For the first time ever, Wyoming made more money from its investment portfolio than from any other revenue source — including oil, gas, and coal. That milestone comes from the state’s latest Consensus Revenue Estimating Group (CREG) report, delivered to lawmakers this week, WyoFile reports.

The headline number is eye-popping: the State Treasurer’s Office booked $1.86 billion in investment earnings — interest, dividends and realized gains — an all-time record. CREG Co-Chair Don Richards told the Joint Appropriations Committee that tally was about 25% more than Wyoming collected in severance taxes plus federal mineral royalties combined.

Richards credited years of legislative and treasury decisions — saving aggressively, updating investment policy, moving into alternatives, and boosting reserves — for setting the table. Gov. Mark Gordon echoed that, calling the shift proof that disciplined saving and a more assertive investment strategy can pay real dividends for taxpayers.

There’s a big caveat, though: volatility. CREG warned that markets giveth and taketh away — especially capital gains. With short-term rates already slipping, the state should expect lower yields on cash, and broader swings tied to geopolitics, energy demand, weather, infrastructure hiccups and global markets. Wyoming’s revenue mix has diversified away from coal, but that also means heavier exposure to oil, gas, and financial markets — all of which move around more.

Not every line beat forecasts. Sales and use taxes to the General Fund and state royalties for schools came in below CREG’s January outlook. On the flip side, extractive revenues still outperformed: severance taxes topped estimates by $22.2 million and federal mineral royalties by $19.6 million.

Amid the numbers, Wyoming also picked up a credit upgrade. S&P Global Ratings raised the state to AA+, citing conservative revenue forecasting, active budget management, timely spending adjustments and very high reserves that cushion volatility.

Lawmakers asked whether lower federal royalty rates under the Big Beautiful Bill could goose coal production over time. Richards said yes — eventually — but cautioned it will take “considerable” time for the lower rate to work through the system.

From here, the CREG report feeds straight into the governor’s budget. Gov. Gordon will roll out his proposal in December, with budget hearings starting Dec. 1 in Cheyenne. The full Legislature reconvenes in February to hammer out the next spending plan — now with a historic twist: the state’s savings account just out-earned its signature resource industries.