Wyoming’s revenue forecast is much stronger than expected, although enthusiasm is tempered.
In its October forecast, Wyoming’s Consensus Revenue Estimating Group (CREG) said general fund revenues improved by $257 million compared to its January outlook. CREG said strong oil prices, higher than expected sales and use tax collections, and record investment income were the main drivers.
State sales tax income was perhaps the biggest surprise, according to CREG co-Chair Kevin Hibbard. A big part of that was likely higher prices in the retail sector.
“You also had compensation increases from the general fund. Also, oil production – remember, they’re buying supplies for oil production. The sales tax is $34.1 million above the estimate, or 4.9% higher,” he said.
He added investment income set a record.
Oil offset an underperforming energy industry hurt by lower than expected natural gas prices and much lower uranium revenues.
Hibbard said while the oil revenue is positive, it may not last.
“You have to pump your brakes a little bit and be a little cautious, because a lot of that is attributed to Operation Epic Fury in oil prices. It’s a bubble. I think everybody can understand that the conflict is gonna end,” said Hibbard.
The governor and Legislature use the revenue projections to craft the supplemental budget. Gov. Mark Gordon is expected to unveil his proposal on Monday.
