Wyoming Lawmakers Argue over What to do with $250 Million

The original story by Maggie Mullen for WyoFile.

Wyoming lawmakers are fighting – again – but this time it’s over where to park a quarter of a billion dollars in extra cash.

During a tense Wednesday meeting, members of the Legislature’s Joint Appropriations Committee split over whether $250 million in surplus revenue should be tucked into permanent savings or set aside in a more flexible account lawmakers can tap later.

At the heart of the debate is a familiar divide: save for the long haul or keep options open.

Lawmakers aligned with the Wyoming Freedom Caucus pushed to place the money into temporary savings – specifically the state’s “rainy day” fund, officially known as the Legislative Stabilization Reserve Account (LSRA). That option would allow future lawmakers to spend both the interest and the principal if needed.

Others backed Gov. Mark Gordon’s plan to stash the money in permanent savings, where the principal is locked away forever but generates steady investment income year after year. Gordon proposed splitting the $250 million evenly between the Wyoming Permanent Mineral Trust Fund and the Common School Permanent Land Fund.

Those funds have become financial heavy hitters for the state. Investment earnings recently hit a record $1.86 billion – more than Wyoming pulled in from its mineral industry.

Gordon made his case in a Jan. 7 letter to lawmakers.

“These earnings continue to help defray the costs taxpayers would otherwise have to pay,” he wrote, arguing that growing permanent savings protects Wyoming from future downturns and helps keep taxes low.

The argument comes as lawmakers are already locked in bruising budget talks at the Capitol. This week’s meetings included votes to dismantle the Wyoming Business Council, eliminate state funding for Wyoming Public Media, cut $40 million from the University of Wyoming, and strip tens of millions from the Department of Health.

Those cuts aren’t being driven by a revenue shortfall. Instead, they reflect a broader push by the newly empowered Freedom Caucus to rein in government growth.

“We’re going to do everything we can to limit the growth of government so it does not outpace your paychecks,” said Rep. John Bear, R-Gillette, a Joint Appropriations co-chair, during a recent caucus press conference.

Bear led the charge Wednesday to put the $250 million into the LSRA instead of permanent funds. While acknowledging Gordon’s approach would better protect the money, Bear said lawmakers may soon need access to cash – especially for education.

“With the potential of being in deficit spending on education,” Bear said, “I think it’s important that the Legislature have funds available in the next two to four years.”

Bear also pointed to a looming ballot initiative that would slash residential property taxes by 50%, on top of an existing 25% exemption. That move could seriously squeeze local governments and school funding.

“There’s gonna be bigger cuts if people vote to relieve themselves from some tax burden,” Bear warned.

Not everyone was convinced.

Sen. Ogden Driskill, R-Devils Tower, pushed back, reminding colleagues of 2020, when Wyoming faced a $400 million budget hole.

“We’re sitting on one of the biggest sovereign wealth funds in the nation,” Driskill said. “Our budget’s balanced, with excess money.”

Jackson Democrat Sen. Mike Gierau went a step further, saying Bear’s comments revealed the real motivation.

“We just got the tell right there,” Gierau said. “We’re going to cut taxes and we’re going to need that money for spending.”

Investment income, Gierau argued, is what helps Wyoming survive the boom-and-bust cycles it knows all too well.

“This is one of the most consequential decisions we’ll make in this budget,” he said. “Say you want to save, but you don’t want to save for the future.”

Some lawmakers tried to cool things down. Rep. Jeremy Haroldson, R-Wheatland, urged colleagues to recognize that both options are technically savings.

“Maybe we need to wake up to the fact that we can achieve both ways,” Haroldson said. “Frankly, I’m frustrated.”

Before the committee approved Bear’s motion, he noted that about $500 million is already set aside by law for permanent savings.

The committee meets again Thursday to finalize a draft budget ahead of the legislative session that begins Feb. 9. Once the budget hits the House and Senate floors, the fight over Wyoming’s $250 million – and much more – is almost certain to continue.