Financial experts say a bill that would ban “woke” state investments could cause financial ruin for Wyoming and those who depend on state funds – like schools and pensions.
The House Minerals, Business & Economic Development committee discussed HB0080 Friday, Jan. 17, morning. No decisions were made, as public testimony spanned the allocated two hours.
‘Stop ESG-State funds fiduciary duty act’ is one of the key bills brought by the Wyoming Freedom Caucus members. It’s part of their Five and Dime Plan, meaning they hope to pass the bill by next Friday, Jan. 24.
Wyoming invests state monies to help pay for things like schools, pensions and the state’s general fund. The proposed bill would prevent investments in companies that prioritize ESG, or environmental, social and governance issues. This includes everything from reducing greenhouse emissions to abortion access to gender affirming care.
“The S&P 500, I think 494 of them have social deals,” said Wyoming State Treasurer Curt Meier to lawmakers.
He added that under this bill, that would leave only six of the stock market’s largest companies that the state could invest in, “if I adhere to the strict language, which is so broad it’s mind boggling.”
Meier mentioned even Peabody Coal has a focus on reducing emissions, meaning the state couldn’t invest in them under this bill. He advised lawmakers to be careful with the bill as it could have “unintended consequences.”
Wyoming’s Chief Investment Officer Patrick Fleming added to this.
“Many states allow abortion, and 10% of the S&P is in healthcare,” Fleming said. “We would not be able to invest in companies that are just abiding by state laws.”
According to Fleming, the state pension fund alone would lose over a billion dollars in the next three years. He said the hit to the state’s budget would be significant.
“You’re looking at about a $5 billion loss in income over the next three years,” Fleming said.
Many others testified echoing similar sentiments. Lawmakers concluded public testimony, but didn’t have time to discuss their thoughts or actions. The committee will take the bill up Monday, Jan. 20.