Tagged: budget cuts

     The University of Wyoming is joining other state agencies in trying to determine how it will trim eight percent from its budget.  U-W Provost Myron Allen says an eight percent cut most certainly means that some positions will have to be eliminated.  However, Allen says it’s still too early to say if U-W will have to eliminate degree programs.

“I’d prefer not to implement across the board reductions, so there probably be some programs that are hit a lot harder than others.  But whether we will have to eliminate some programs, I don’t know yet.”

Allen says there is no way that U-W could raise enough money through tuition and fees to easily make up for an eight percent budget cut. 

Wyoming Governor Matt Mead says all state agencies should be prepared to cut budgets by eight percent next year.  Falling natural gas prices are to blame.  Wyoming House Appropriations Chairman Rosie Berger said it’s due to Wyoming having a minerals based economy.  When natural gas prices drop, the state loses millions.  Berger said the good news is that agency heads have awhile to prepare.

“I think they were relieved to have a year’s time to analyze their budget to take charge of their agency and look at where they could make responsible reductions and still operate with efficiency’s that are needed for the public.”

    The Wyoming House and Senate have begun discussing the 3-point-2 billion dollar state budget.  It will cover a biennium, or the next two fiscal years.  House Appropriations Chairman Rosie Berger says they are trying to pass a flat budget this year and limit future spending.  Senate Appropriations Chairman Phil Nicholas says agencies will be asked to reduce their budgets by four percent in the second year of the biennium and another four percent in the following year.

    The University of Wyoming says reductions in staffing and student support are among the scenarios they are considering if the legislature decides to cut its budget this year.  

U-W and other state agencies have been asked to explain what reductions of two, five and eight percent would mean to their budgets.  At the high end, U-W President Tom Buchanan says the cuts would be severe.  In the two percent scenario, Buchanan says reductions not connected to academics would be made.   But he admits that will change if the cuts are more than that.

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.

Governor Matt Mead is telling state agencies to prepare for budget cuts.  The governor claims that Wyoming’s future revenues are expected to flatten out or even decrease in the next few years. Mead says the budget he’s preparing for next two years takes that prediction into account.

“The fact is over the last decade our spending on the standard budget has more than doubled," the governor said. "Over that period of time, the state of Wyoming has done some tremendous things, but we can’t continue to double it every ten years.”

Earlier this month, the Legislature’s Joint Appropriations Committee warned state agencies that 8 percent budget cuts could be on the horizon, but Mead says cuts of that size could have unintended consequences.

Top Wyoming lawmakers are directing state agencies to brace for possible budget cuts.

Republican Sen. Phil Nicholas, of Laramie, and Republican Rep. Rosie Berger, of Big Horn, are co-chairmen of the Joint Appropriations Committee. They wrote a letter telling state budget officials that agencies should be prepared for cuts ranging up to 8 percent in the coming two-year budget cycle.

Budget analysts predict Wyoming will have nearly $1.5 billion in cash reserves at the end of the current budget cycle next June. But they're also predicting flat state revenues over the coming five years.