This week, two legislative committees began their dissection of the hotly debated Wyoming Business Council (WBC). The Minerals and Business Development Committee, alongside the Appropriations Committee, explored the programs, grants, loans, decisions, methods and goals of the WBC’s leadership.
Conversely, WBC leaders tried to show elected officials and the public their vision, laying out what they were doing to respond to the prior months of debate and took waves of criticism from lawmakers. While some lawmakers were prepared to begin drafting legislation to reform the council, committee members instead focused on questioning WBC leadership to learn more about the agency.
The council was born out of an effort in the mid 1990s to review how Wyoming had dropped from an economic powerhouse in the ‘70s to a weaker state in the ‘90s. The state government decades ago wanted to know what steps could be taken, in the public or private sector, to see Wyoming become a business-friendly state again.
But recently, the conversation around the WBC has centered on how it conducts its operations and how the agency may conflict with the concept of the free market. While the WBC was mostly on defensive footing during the two committee hearings, it occasionally received words of support from lawmakers, like Rep. Scott Heiner (R-Green River).
After praising the council for its consultation services, Heiner laid out the fork in the road facing the WBC.
“That's what it comes down to, from our perspective: Do we continue on this trajectory? Or do we just give that money in the next 20 years directly to the towns, to the counties, and let them decide through something similar to the [countywide] consensus grant program, where local communities decide what's important and where [to] invest that billion dollars in the next 20 years?” Heiner said.
The council defends itself
“The legislative session was challenging in many ways,” was how Joseph Schaffer, the vice chair of the WBC, began his testimony to the Appropriations Committee on Thursday. The WBC faced deep cuts, spurred primarily by Wyoming Freedom Caucus members on the Joint Appropriations Committee, during budget hearings last year.
“Some of that perhaps wasn't earned by the Business Council. We recognize that we also have a role in the conversation and what ensued during the legislative session. And the board needs to own some of that,” said Schaffer.
Through its time in front of both committees, the WBC highlighted a few overarching themes. It repeatedly stated how important it was to give young people reasons to stay in Wyoming. The council also emphasized its attention to helping Wyomingites create or find more quality jobs, helping “business ready communities” to expand, removing barriers to local innovation and facilitating strong regional economies throughout the state. Above all else, members of the WBC made it clear they want to support business development, not dictate it.
The WBC also listed actions it had taken or planned to take in response to lawmaker’s defunding efforts during the budget session. After the conclusion of this year’s budget session, the WBC performed a small information campaign. It released a “myth busting” fact sheet responding to some of the criticisms from the budget session, alongside publicly sharing plans to improve and focus the organization through a more regional approach.
Concerning leadership, the WBC listed seven goals for its CEO, Josh Dorrell. They include building trust, defining Wyoming’s economic philosophy, defining measures of success, launching a regional economic framing plan, developing the statewide economic development strategy, aligning the budget and funding strategy, and reviewing responsibilities.
The WBC also told the committees it believed the biggest issue was communication. The council said that lawmakers’ audit of the agency was ultimately a good thing, suggesting more communication around economic development is a net positive for the state. Through conversations hosted by programs like the WBC’s Assessment to Action, it’s also attempting to find out what works and how the agency can help local entrepreneurs develop their business.
Additionally, the WBC is conducting its own internal review of its operations, building public facing dashboards that will allow for information to be shared more clearly with the public and sharing reports with lawmakers. One report, titled, “Why do young people have to leave,” showed that the majority of young Wyomingites said they left the state due to job availability.
Citations needed
The WBC’s testimony was accompanied by presentations, hand-outs, partner organizations and commentary from individuals who have experience with the agency.
However, some lawmakers, like Sen. Tara Nethercott (R-Cheyenne), wanted detailed success stories.
“We get your PowerPoint slide that looks fantastic, that looks just absolutely incredible, out of this world results,” said Nethercott. “Not really seeing that, it doesn't feel like that on the ground. And so maybe, perhaps, [give] us more real world examples.”
Dorrell cited three Wyoming businesses that had benefited from the programs, consultation or guidance of the WBC: Mesa Solutions, DISA Technologies and Power Theory.
Dorrell added that the WBC’s venture capital fund had helped businesses like DISA and others solve a classic "chicken and egg problem."
“We realized that … there wasn't enough capital to attract a deal flow, and there wasn't enough deal flow to attract capital. That chicken and egg problem,” said Dorrell. “We were able to find a federal program and utilize federal funds to unlock potential in Wyoming. … Eleven companies were invested in. We invested out of the Wyoming Venture Capital Fund, not quite $20 million, but that attracted $162,000,000 to those businesses.”
Sen. Mike Gierau (D-Jackson) on the Appropriations Committee asked the council for three examples of internal programs the WBC no longer uses.
Dorrell told Gierau that the Community Development Block Grant was transferred to the Wyoming Community Development Authority, the State Energy Program was transferred to the Wyoming Energy Authority, and the Premium Heifer Program "didn't move the needle economically" and was discontinued. Dorrell added that the council had reinstated some programs, such as “Kickstart,” which Rep. John Bear (R-Gillette) described as “Wyoming’s Shark Tank.”
Both Gierau and Nethercott asked for more practical information, be it in support of or as evidence against funding the WBC. However, other elected officials choose to explore ideological beliefs.
Rep. Ken Pendergraft (R-Sheridan), who said that a number of opening statements made by the WBC "disturbed" him, also asked for a list of examples. He believed the WBC had conflicting goals.
“[The WBC is] doing our own analysis. [The WBC is] doing our own self reevaluation. Contrast that with another statement," said Pendergraft. “You said that we need to be able to move at the speed of business. …You don't sit around and order and reevaluate over and over and over again, and getting ready to get ready. You go do. So my question is, are you able to articulate, say give me three points, what is this vision of leadership?”
Schaffer didn’t list three specific points regarding leadership. Instead, he touched on the WBC’s efforts to diversify the economy and highlighted the importance of local input. Schaffer posed his own question to the committee broadly.
“Who's responsibility is it to create a vision for Wyoming's economy?” said Schaffer. “Is it the Business Council? Is it the governor? Is it the Legislature? Without the clarity of who ultimately owns that vision, it's hard to do that. … If nobody's going to step up to do that, we're going to take a stab at it.”
Markets and vision
Rep. Pendergraft followed up on his question of leadership, asking who exactly is supposed to set the economic vision for the state. Pendergraft believes it’s the free market that sets up a vision, suggesting it’s the only “entity that can move at the speed of business” because “[the market] really is business.”
Pendergraft added he “didn’t hear any vision” in Schaffer’s previous answer. He pressed Schaffer, asking if he believes the free market still exists. Schaffer argued “that it does not [exist].”
“Over the generations of our great nation, we have seen a mixed market emerge based in many ways on free market principles, but at the end of the day, I am not aware of and I would love to know where, truly, a free, unregulated market exists that doesn't have things such as child labor laws, monopoly laws, investments in workforce and education, other things that ultimately create or enhance a market,” said Schaffer.
Bear said he hears Schaffer on the question of who sets the economic vision for Wyoming. Bear made it clear he is a proponent of free markets as well, and that the WBC should help markets in Wyoming to be as free as possible via reduced regulations and low taxes. However, Bear made it clear that “casting the vision” has been a “failure.”
“I think that your entrepreneurs, your business leaders are gonna naturally understand what the Wyoming Business Council is doing and what its purpose is,” said Bear. “It also needs to be cast for the common man out there, that's a taxpayer and wondering, ‘Are my dollars really being spent wisely in this regard?’”
Bear then pointed out an area of financial assistance he wanted the council to review: grants vs loans. He also suggested that plans to change how that assistance was distributed were already in the works.
“This body's really, really interested in making sure that the totality of this operation doesn't lead to a welfare for the well-connected,” said Bear. “We want to be cautious of that. I think it's easily resolved when we focus on loans versus grants. Now, the grants are supposed to be for local governments, and I think we've started to develop a vision as to how we'd like to see that work. We're ready to work with the local governments to determine what is the best course forward in that regard.”
Community conscious
Rep. Kevin Campbell (R-Glenrock) on the Minerals Committee also felt strongly about the Business Council’s performance over the past few years, telling leadership that since they last visited Glenrock, two businesses had closed down.
“No offense, but I think your business model is flawed,” said Campbell. "I think that the way that you guys are moving forward currently is very flawed, and that is the reason why you guys are in the position that you're in.”
Campbell, representing a small but industrial section of Wyoming he described as “the utility corridor,” laid out the broad issues he has with the WBC. He said he was “a little chuffed” with what he called soft answers. He felt the WBC was going to waste time talking to communities about issues that those communities may have long had a solution to. Additionally, he claimed that small towns like Glenrock don’t have the resources and infrastructure to support a sudden influx of temporary project out-of-state workers. To that end, Campbell suggested WBC leadership was more concerned with the corporation than it is the community.
“When you say that you want to come up from the grassroots, you’re not,” said Campbell. “You’re bringing in a great big company from out-of-state. Bang. Make it fit, and it's not working. And people hate it.”
Next up
The Minerals Committee ended the meeting with a few requests. The committee will ask the Legislative Service Office (LSO) to prepare a report on what surrounding states are doing for economic development, the WBC to review what changes can be made to relevant statutes and the governor for recommendations. The committee also asked LSO to prepare a bill draft to adjust, change or remove statues related to the Countywide Consensus Grant Program. Lastly, the WBC will be expected to bring a presentation listing all programs under its stewardship. The committee is scheduled to meet on June 4.
The Appropriations Committee continued its discussion on Friday after hours of public testimony concluded its first meeting day. The committee is scheduled to meet again on June 22.
