Tagged: budget

Bob Beck recently spoke with Gov. Matt Mead in his office about a number of topics including proposed state budget cuts.

Wyoming Governor Matt Mead says he wants state agencies to look at program reductions but not job cuts when they come up with plans to reduce the state budget. 

Because of declining natural gas prices, the governor is asking all state agencies to be prepared to reduce their budgetseight percent by July first of 2013.  Mead said during a news conference that many of the reductions can be done without layoffs.

“I don’t want them in their 8 percent to say we are going to fire ten people, that’s how we are going to take care of it.  That’s not where I want them to look.  I want them to look first at their programs, the services they provide, look for their cuts  there, before they go into personnel.”

The Wyoming Legislature has approved a $3.2-billion budget bill which now goes to Gov. Matt Mead for his consideration.

The budget bill approved by both Houses on Monday keeps state spending essentially flat over the coming two-year budget cycle.

State lawmakers are keeping a close eye on falling natural gas prices and had directed state agencies to prepare for possible 4-percent budget cuts next year if necessary.

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HOST INTRO: Wyoming lawmakers are about to start budget work, with the knowledge that revenue projections have dropped substantially since last fall.  State agencies are being told that most budgets will not increase, and that they should be prepared to cut their budgets for a total of 12 percent over the next three years.  It should mean that the days of sticking in big money amendments into the budget during debates are probably over for a while.  Bob Beck reports.

During his state of the state message Governor Matt Mead said that Wyoming is doing well.  He said Wyoming does not have the severe budget constraints that other statesface, but that a downturn in projected revenue means that the state has to curb its spending.

“I have not recommended deep across the board cuts to agencies,” Mead said. “Instead I used a targeted approach identifying those areas where we could slow or even reduce growth.  Some cuts have been made, but we should distinguish between cuts and reducing growth.  There is a real difference.”

Mead says a reduction to the state Medicaid program needs to be addressed and after opposing state pay hikes, he says he thinks that issue should face another look.

University of Wyoming President Tom Buchanan says employee salary increases might not be possible if the state legislature’s Joint Appropriations Committee requires steep cuts in the university’s next biennial block grant.
U-W requested an additional $9.7 million dollars be allocated to give U-W employees a pay increase in its next budget. However, the J-A-C has asked state departments to make plans for two, five and eight percent budget cuts to cope with diminished state revenue from natural gas prices.
President Buchanan says the university could handle a two percent budget cut with a salary increase, but beyond that would be problematic.

Governor Matt Mead says falling natural gas prices make this a good time to reevaluate his proposed budget. In December, the governor submitted his budget, which asked agencies to present a two-percent cut to their budgets. That budget was based on natural gas prices which were nearly $3.50 per MCF at the time.

By Friday morning, Mead says gas prices on the spot market dropped to $2.75 which could mean a revenue reduction of nearly 100 million dollars over the next few years. As a result, Mead says the state might have to look at additional budget proposals which suggest cuts of five-percent and eight-percent to state agencies.

Governor Matt Mead presented his budget to the Joint Appropriations Committee and re-asserted his position that the state does not need to hurry to cut budgets.

Senate JAC Chairman Phil Nicholas has suggested cuts of five to eight percent are needed, so that the state can start setting aside money for future needs.  Governor Mead says they should decide what government services are critical and determine what money the state would need to fund those services.

"We should decide how much government is needed based on the needs of the citizens of Wyoming, the needs of local government, and try to do a forecasting that is appropriate along with the CREG report,” Mead said.

The administrator of Wyoming’s Economic Analysis Division says the state’s long range economic forecast is that revenues for energy development should be stable.  Some lawmakers contend that recent revenue reports suggest that Wyoming will have less money in the future, and they want state agencies to trim budgets between five and eight percent. 

But Buck McVeigh who co-chaired the state economic forecast says it is far from dire.  But he added during an interview on Tuesday that the very high prices Wyoming has received for its natural gas  will likely level off.       

"That might be a little bit under pressure right now as more natural gas and storage levels remain quite high.  But none the less, we are not forecasting anything in a dismal sense, just flat.”