SF0068

Official summary

Summary for LSO115 Bill No.: SF0068 Effective : 7/1/2016 LSO No.: 16LSO-0145 Enrolled Act No.: SEA No. 0058 Chapter No.: 118 Prime Sponsor: Joint Appropriations Interim Committee Catch Title: Budget shortfall measures (Sub. #1). Subject: Process f or addressing budget shortfalls Summary/Major Elements: While appropriations do not exceed anticipated revenues, it is possible for revenues to be less than anticipated and they could drop below funds appropriated in periods of declining investment returns, mineral production or pricing. Over the past ten to fifteen years , provisions have been placed in the general appropriations bi ll providing authority for the G overnor to address possible budget shortfalls. This bill codifies some of those provisions and adds others . It provides a role for the L egislature to participate in addressing budget shortfalls that occur between sessions. The bill provides for a contingent appropriation process under whic h the L egislature may, but is not obligat ed to, provide funds which the G overnor may access as an alternative to cutting expenditures should revenues decrease. The bill provides the G o vernor will notify the Joint Appropriations Committee (JAC) and the L egislature before cutting authorized expenditures. The JAC and , if Management Council determines necessary, standing committee s will provide recommendations to the Governor regarding actions to address a budget shortfall. The bill also explicitly provides for the potential diversion of two revenue streams to address a budget shortfall (the one percent severance tax deposited by statute to the permanent Wyoming mineral trust fund and funds from permanent mineral trust fund investment earnings directed to the L egislative Stabilization Reserve A ccount and the S trategic Investment P rojects A ccount). These funds may be diverted by a gene ral appropriations bill if the L egislature determines that should be done in any fiscal year. The bill also defines the Consensus R evenu e Estimating G roup (CREG) in statute and generally exempts CREG from the administrative procedures act, the public meeting act and public records provisions. The bill makes amendments to the budgeting process to address budget shortfalls ( i.e. , anticipated revenues are less than expected, resulting in over appropriations) and str uctural budget deficits ( i.e. , ongoing expenditures exceed traditionally available revenues (excluding savings)). The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill .