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2020 Study: Almost 25% Of Wyoming Workers Employed In Government

in News/Government
Photo by Matthew Idler
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By Jim Angell, Cowboy State Daily

Almost one-quarter of Wyoming’s civilian workers were employed by local, state or federal government entities in 2020, according to a new state report.

Figures from the latest “Just The Facts” publication issued annually by the state Economic Analysis Division of the Department of Administration and Information showed that 24.4% of Wyoming’s workers were employed by the government.

The numbers include those working in government-provided services such as education and public health, but do not include those serving in the military.

Wyoming was in second place for the percentage of its workers employed by the government in 2020, trailing only Alaska at 25.5%.

However, Wenlin Liu, the state’s chief economist, said the figure can be easily skewed by Wyoming’s small population.

“Wyoming is a big state with a small population,” he said. “Any time you’ve got a percentage figure (of the population), it’s going to be higher.”

According to the report’s figures, about 72,419 members of Wyoming’s civilian labor force of 296,801 were employed by the government in 2020. 

The figure was an increase of 3% from 2019, but Liu noted the figures were reported from a period before the state of Wyoming reduced its workforce as a result of budget cuts.

Gov. Mark Gordon cut more than 300 positions from state government in his supplemental budget of 2021 following steep declines in mineral tax income.

Liu said the government employment numbers were high in states with small, widely dispersed populations such as Wyoming and Alaska.

Other states with high percentages of workers employed by the government included West Virginia and Hawaii at 22%, New Mexico at 22.6% and Oklahoma at 21.3%.

Washington, D.C. had the highest percentage of government workers at 32%.

The leisure and hospitality industry was the state’s second-largest employer in 2020 at 11.9%, about 35,319.

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Gordon releases tight budget for next biennium

in Government spending/News
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Gov. Mark Gordon’s release of his budget proposal for the 2021-22 biennium on Monday came with a recognition of the declining fortunes of Wyoming’s mineral sector.

Gordon said his budget proposal — his first as governor — kept spending low without cutting programs.

“The point to me has been to understand what those budget cuts will mean operationally across the whole of government,” he said during a news conference Monday. “I think that’s a process that takes more time. We haven’t identified any programmatic cuts at this point.”

Between spending requirements set by law or the Constitution and limits on revenues — estimated to total $2.26 billion during the next two years — Gordon said he is recommending a budget that he said will keep spending low and reduce capital construction.

The budget for the General Fund — the state’s main bank account — recommends providing public schools with $161 million from Legislative Stabilization Reserve Account on top of the $1.7 billion schools are to receive from the Schools Foundation Program. In addition, he recommended $105 million be given to local communities.

Gordon’s budget proposes spending $94.7 million on capital construction rather than the $150 million proposed to his office. He also recommended spending $238 million on school construction and $21 million for one-time bonuses for state government employees.

“My goal in this budget was to take care of people first because they are key to a productive government,” he said. “I have mentioned several times how incredibly hard working people in Wyoming government are. And I recognize that they have not had the recognition that they have really deserved over time.”

Gordon, in his comments during the news conference and in the letter to the Legislature accompanying his budget proposal, said his budget was prepared with an eye toward changing economic conditions.

“These changes, including declining coal production and low natural gas prices, will impact how we fund government services over the next years and probably on into the future,” he said.

The Legislature’s Joint Appropriations Committee will begin its review of Gordon’s budget in a series of meetings to be held through December and January. The committee will forward its recommendation for a biennium budget to the full Legislature, which begins its 2020 budget session in February.

2021-22 BUDGET POINTS

  • Total proposed budget: $3.2 billion
  • Appropriation for capital construction: $94.7 million
  • Appropriation for local communities: $105 million
  • Appropriation for School Foundation: $1.75 billion
  • Appropriation for school construction: $238 million
  • Appropriation for Wildlife and Natural Resource Trust Fund: $12 million
  • Appropriation for Energy Commercialization Program: $25 million
  • Appropriation for the University of Wyoming: $438 million
  • Number of new employees: 35

Revenues ahead of estimates, though structural problems remain

in Government spending/News/Taxes
Wyoming taxes
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By Laura Hancock, Cowboy State Daily

Sales taxes, investment income, oil severance taxes and federal mineral royalties are proving to be the saving grace for state coffers, according to a recent report, but the overall revenue picture for Wyoming remains bleak.

In the first six months of the year, production of natural gas and coal – as well as prices for coal – came in below the state’s official forecast, according to the Census Revenue Estimating Group, made up of revenue experts from the legislative and executive branches of Wyoming government. 

CREG recently released a six-month revenue update for Wyoming, and compared those revenues against its previous official state forecast, released in January. 

At one time, coal and natural gas were counter-cyclical – when one was down, the other was up – which helped Wyoming absorb the booms and busts of a natural resource economy, and money continued to flow to keep state government running. 

But the July 31 CREG update underscored a new reality: Production of both commodities was down, and the income for two accounts that fund most day-to-day operations in state government would have also missed estimates had it not been for other forms of revenue. 

Revenue receipts to the General Fund, which is something of a state checking account, were $201 million or 16.9 percent ahead of earlier forecasts for the year due to higher-than-anticipated sales tax, investment and oil severance tax income.  

Receipts to the Budget Reserve Fund, which is akin to a state overdraft account, were 6.7 percent ahead of projections, thanks to severance taxes and federal mineral royalties. State Rep. Dan Zwonitzer, R-Cheyenne, said that Wyoming can’t always count on high returns on investments. 

“Future projections for investment returns are nowhere near where they’ve been the last four years,” he said. “They’re looking at 5.5 percent, 5.25 percent (rate of return) for the retirement system. We have some serious problems ahead of us.”

Zwonitzer is a co-chair of the Legislature’s Joint Revenue Committee, which is studying whether to implement new taxes, such as a corporate income tax or a gross receipts tax. 

The difference between the two? A corporate income tax is assessed on business profits, or income. Gross receipts taxes are levied on sales. 

Companies don’t pay corporate income taxes if their profits are zero or negative. But that’s not true with gross receipts taxes, according to the conservative Tax Foundation.

Forty-four states have a corporate income tax and four have a gross receipts tax, Zwonitzer said. 

Other taxes under consideration: 

  • A higher assessment against wind power generation
  • An increase of the statewide mill levy for schools
  • Increases for some property taxes
  • Adding a fourth category of property taxes – currently there are residential, commercial and industrial – which would consider multi-million dollar residential homes. “That would require a constitutional amendment,” Zwonitzer said. 

However, tax talk is tough in the Cowboy State, where people are conservative and used to one of the nation’s lowest tax rates. Previous tax proposals – such as requiring taxes be assessed on services including haircuts, real estate transactions and legal services – went nowhere. 

“Some in the Republican caucus say we need to be cutting services more before raising taxes,” Zwonitzer said. “They can’t identify where those cuts are” outside of education. 

Revenue bills must first be introduced in the House, where Zwonitzer said many proposals will likely gain the two-thirds vote necessary to clear introduction and be referred to a committee on budget years, such as the 2020 session. 

“I think we’re going to have some good discussions,” he said. 

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