HB0042 • 2022

Local government distributions.

AN ACT relating to local government funding; providing funding to cities and towns; providing funding to counties; providing local government funding formulas and distributions; providing legislative intent; providing appropriations; and providing for an effective date.

Budget Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Appropriations
Last action: 2022-03-16
Official status: enrolled
Effective date: 7/1/2022

Plain English Breakdown

Some parts of the bill text were deleted or modified during legislative process, which might affect interpretation.

Local Government Funding Act

This act provides funding to cities, towns, and counties based on specific formulas that consider factors like population and assessed valuation.

What This Bill Does

Provides $105 million for distribution to cities and towns.
Allocates $42.2 million of the total amount directly to counties.
Distributes funds in two installments each fiscal year, on August 15th and January 15th.

Who It Names or Affects

Cities
Towns
Counties

Terms To Know

Revenue-challenged formula: A method used to distribute funds to cities and towns that have lower per capita revenue compared to others.
Assessed valuation: The value of property for tax purposes, which is used in the funding distribution formula.

Limits and Unknowns

Details about how funds are distributed after initial allocations are not fully explained.
Specific requirements and conditions for matching funds may vary by project.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0042H3001

3rd reading • Representative Harshman

Adopted

Plain English: The amendment requires local governments to match state funds for grants aimed at community enhancement or economic development projects, with specific conditions on distribution and eligibility.

Adds a requirement that counties must provide matching funds of $1 for every $1 received from the state for certain grants.
Specifies that the total amount of $15 million will be distributed to each county based on its population relative to the state's total population.
Sets a condition that at least 70% of the incorporated population within a county must agree on how the funds are used.

The amendment text does not specify what happens if counties do not meet the matching fund requirement or fail to reach agreement among cities and towns.

HB0042JC001

Conference Committee

H Adopted, S Adopted

Plain English: The amendment removes certain sections from the bill and adds new funding provisions for cities, towns, and counties using a modified revenue-challenged formula.

Removes specific Senate amendments and parts of existing text in the bill.
Appropriates $15 million to be distributed differently among cities, towns, and counties based on a modified revenue-challenged formula.
Adds new sections detailing how funds should not be used for board member compensation unless required by law.

The exact impact of the changes on local government funding formulas is complex and may require further explanation beyond this summary.

HB0042S2001

2nd reading • Senator Driskill

Adopted

Plain English: The amendment adds a rule that cities and towns cannot use distributed funds to pay board members for their work, except when the law requires it. The same rule applies to counties.

Adds a new clause stating that city or town governing bodies cannot use distributed funds to compensate appointed board members unless required by law.
Adds a similar clause for counties, specifying that county commissioners' boards also cannot use distributed funds to pay their appointed board members unless it is legally mandated.

The amendment does not specify what happens if compensation is required by another law.

HB0042S3001

3rd reading • Senator Hicks

Adopted

Plain English: The amendment changes specific funding amounts, percentages, and text in the bill to modify how local government funding is distributed.

Changes the total funding from $105 million to $120 million for cities and towns.
Increases certain percentage rates from five percent (5%) to ten percent (10%).
Removes specific sections of text related to previous amendments and committee decisions.

The amendment removes several lines without providing context on what those lines contained, which limits a full understanding of the changes.
Adjustments in totals and renumbering are required but not detailed, leaving some specifics unclear.

HB0042SW001

Committee of the Whole • Senator Kinskey

Failed

Plain English: This amendment to HB0042 removes certain sections of the bill related to funding formulas and appropriations for local governments.

Removes language about funding from the bill's title on page 1.
Changes 'appropriations' to 'an appropriation' in the bill's title on page 1.
Deletes specific lines detailing funding formulas and distributions on pages 14 and 15.

The amendment text does not provide details about what is being deleted, making it hard to explain fully without seeing those sections of the original bill.

HB0042SW002

Committee of the Whole • Senator Kinskey

Adopted

Plain English: The amendment changes how funding is distributed to counties by adjusting the formula used for calculating these distributions.

Removes the phrase 'in an amount' and replaces it with a new distribution method based on population and per capita assessed valuation factors.
Introduces a two-part calculation: eighty percent of the total appropriation is allocated based on county population relative to state population, while the remaining twenty percent is distributed according to each county's inverse per capita assessed valuation factor.

The amendment text does not specify how the overall amount appropriated will be determined.
Details about the exact impact of these changes on specific counties are not provided in the amendment text.

HB0042SW003

Committee of the Whole • Senator Driskill

Withdrawn

Plain English: The amendment adds a rule that cities and towns, as well as counties, cannot receive funding if they pay their board members unless state law requires it.

Adds a new clause to the bill stating that no funds will be distributed to any city or town that pays its board members unless required by law.
Adds another similar clause for counties, preventing them from receiving funds if they compensate their appointed board members unless mandated by state law.

The amendment does not specify what happens when a city, town, or county is found to be paying its board members without legal requirement after the funding has been distributed.

HB0042SS001

Standing Committee • Senate Appropriations Committee

Adopted

Plain English: The amendment changes the month from June to July for a specific funding distribution date.

Changes the funding distribution date's month from June to July.

Bill History

2022-03-16 LSO
Assigned Chapter Number 91
2022-03-16 Governor
Governor Signed HEA No. 0061
2022-03-11 Senate
S President Signed HEA No. 0061
2022-03-11 House
H Speaker Signed HEA No. 0061
2022-03-11 LSO
Assigned Number HEA No. 0061
2022-03-10 Senate
S Appointed JCC01 Members
2022-03-07 House
H Appointed JCC01 Members
2022-03-07 House
H Concur:Failed 6-53-1-0-0
2022-03-04 House
H Received for Concurrence
2022-03-04 Senate
S 3rd Reading:Passed 25-5-0-0-0
2022-03-03 Senate
S 2nd Reading:Passed
2022-03-02 Senate
S COW:Passed
2022-03-01 Senate
S Placed on General File
2022-03-01 Senate
S02 - Appropriations:Recommend Amend and Do Pass 5-0-0-0-0
2022-02-23 Senate
S Introduced and Referred to S02 - Appropriations
2022-02-17 Senate
S Received for Introduction
2022-02-17 House
H 3rd Reading:Passed 49-10-1-0-0
2022-02-16 House
H 2nd Reading:Passed
2022-02-15 House
H COW:Passed
2022-02-15 House
H Placed on General File
2022-02-15 House
H02 - Appropriations:Recommend Do Pass 7-0-0-0-0
2022-02-14 House
H Introduced and Referred to H02 - Appropriations 50-9-1-0-0
2022-02-11 House
H Received for Introduction
2022-01-21 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 22LSO-0322
Bill No.:

HB0042

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0322

Enrolled Act No.:

HEA No. 0061

Chapter No.:

Prime Sponsor:

Joint Appropriations Committee

Catch Title:

Local government distributions.

Subject:

Appropriations for cities,
towns
and counties.

Summary/Major Elements:

The act makes two appropriations to the Office of State Lands and Investments for distribution to cities, towns, and counties in the amounts of one hundred five million dollars ($105,000,000.00) and fifteen million dollars ($15,000,000.00).

From these appropriations, cities and towns receive seventy-seven million seven hundred ninety-six thousand dollars ($77,796,000.00) and counties receive forty-two million two hundred four thousand dollars ($42,204,000.00).

Funds appropriated in this act are directly distributed to local governments based on various factors, including population, assessed valuation and per capita sales and use tax collection.

The two appropriations are distributed in a similar manner although a modified distribution formula is applied to the
fifteen million dollar
($15,000,000.00) appropriation.

The appropriated funds are distributed on August 15,
2022
and January 15, 2023 for fiscal year 2023, and August 15, 2023 and January 15, 2024 for fiscal year 2024.
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.

Current Bill Text

Read the full stored bill text

22LSO-0322

ORIGINAL House

ENGROSSED
Bill No
.
HB0042

ENROLLED ACT NO. 61,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to local government funding; providing funding to cities and towns; providing funding to counties; providing local government funding formulas and distributions; providing legislative intent; providing appropriations; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

(a)

From the general fund there is appropriated one hundred five million dollars ($105,000,000.00) to the office of state lands and investments to be allocated pursuant to the following and as further provided in this section:

(i)

Two
‑
thirds (2/3) of eighty
‑
nine percent (89%) of the total amount appropriated, for direct distribution to cities and towns provided that five percent (5%) of the amount available under this paragraph shall only be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of this section;

(ii)

One
‑
third (1/3) of eighty
‑
nine percent (89%) of the total amount appropriated, for direct distribution to counties;

(iii)

Five and one
‑
half percent (5.5%) of the total amount appropriated, for direct distribution to cities and towns provided that five percent (5%) of the amount available under this paragraph shall only be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of this section;

(iv)

Five and one
‑
half percent (5.5%) of the total amount appropriated, for direct distribution to counties.

[CITY AND TOWN DIRECT DISTRIBUTION ALLOCATIONS]

(b)

Funds appropriated in paragraphs (a)(i) and (iii) of this section shall be distributed to cities and towns with one-half (1/2) of the amount available distributed in the first fiscal year of the biennium and one-half (1/2) of the amount available distributed in the second fiscal year of the biennium. Distributions in each fiscal year shall be made in equal amounts on August 15 and January 15 of each fiscal year as calculated prior to the August 15 distribution, subject to the following:

(i)

Except as provided in paragraph (ii) of this subsection, from these distributions each municipality with a population of thirty-five (35) or less shall first receive fifteen thousand dollars ($15,000.00) and each municipality with a population over thirty-five (35) shall first receive thirty-five thousand dollars ($35,000.00). From the remainder, each municipality shall receive amounts in accordance with a municipal supplemental funding formula as provided in this paragraph. The municipal supplemental funding formula shall be calculated by the office of state lands and investments as follows:

(A)

For each fiscal year calculate the per capita sales and use tax revenues available to each municipality using the sales and use tax distributions to each county attributable to fiscal year 2021 for distributions under this paragraph during fiscal year 2023 and the sales and use tax distributions to each county
attributable to fiscal year 2022 for distributions under this paragraph during fiscal year 2024, including distributions to each municipality within that county, under W.S. 39
‑
15
‑
111 and 39
‑
16
‑
111, but excluding the distribution exclusively to counties under W.S. 39
‑
15
‑
111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
15
‑
104, and excluding the distribution exclusively to counties under W.S. 39
‑
16
‑
111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
16
‑
104;

(B)

Calculate the inverse by dividing one (1) by the per capita sales and use tax determined under subparagraph (A) of this paragraph for each municipality;

(C)

Calculate the normalized per capita sales and use tax number for each municipality by dividing the number determined under subparagraph (B) of this paragraph for the municipality by the total of all inverse per capita sales and use tax numbers calculated under subparagraph (B) of this paragraph;

(D)

Multiply the normalized per capita sales and use tax number for each municipality by seventy-five percent (75%);

(E)

For each fiscal year calculate the per capita assessed value for the prior tax year corresponding to the most recently completed calendar year for each municipality by dividing the total assessed valuation within the municipality by the population of the municipality;

(F)

Calculate the inverse by dividing one (1) by the per capita assessed value determined under subparagraph (E) of this paragraph for each municipality;

(G)

Calculate the normalized per capita assessed value number for each municipality by dividing the number determined under subparagraph (F) of this paragraph for the municipality by the total of all inverse per capita assessed value numbers calculated under subparagraph (F) of this paragraph;

(H)

Multiply the normalized per capita assessed value number for each municipality by twenty-five percent (25%);

(J)

Multiply the sum of subparagraphs (D) and (H) of this paragraph by the population of the municipality;

(K)

Calculate the normalized index for each municipality by dividing the number determined under subparagraph (J) of this paragraph for the municipality by the sum of all numbers calculated under subparagraph (J) of this paragraph;

(M)

Determine the amount to distribute to each municipality by multiplying the normalized index number determined under subparagraph (K) of this paragraph by the amount remaining available for distribution under this paragraph.

(ii)

From the amounts specified in paragraphs (a)(i) and (iii) of this section, each city or town shall receive amounts in accordance with a city and town revenue challenged formula as provided in this paragraph. The
revenue challenged formula shall be calculated by the office of state lands and investments as follows:

(A)

For each fiscal year, calculate the lowest quartile amount received by cities and towns on a per capita basis using amounts received under this section plus amounts distributed to each city and town using the sales and use tax distributions to each county attributable to fiscal year 2021 for distributions under this paragraph during fiscal year 2023 and the sales and use tax distributions to each county attributable to fiscal year 2022 for distributions under this paragraph during fiscal year 2024, including distributions to each municipality within that county, under W.S. 39
‑
15
‑
111 and 39
‑
16
‑
111, but excluding the distribution exclusively to counties under W.S. 39
‑
15
‑
111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
15
‑
104 and excluding the distribution exclusively to counties under W.S. 39
‑
16
‑
111(b)(iii) made from an amount equivalent to one percent (1%) of the tax collected under W.S. 39
‑
16
‑
104;

(B)

Determine each city or town that received a per capita amount that is less than the lowest quartile amount determined under subparagraph (A) of this paragraph;

(C)

For each city or town that received a per capita amount that is less than the lowest quartile amount as provided in subparagraph (B) of this paragraph, determine the amount that would be necessary to increase the per capita amount distributed to that city or town to the lowest quartile amount determined under subparagraph (A) of this paragraph;

(D)

Determine the amount to distribute to each city or town that received an amount that is less than the lowest quartile amount determined under subparagraph (A) of this paragraph by distributing the amount available under this paragraph on a pro rata basis, up to the lowest quartile amount, based on the amounts determined under subparagraph (C) of this paragraph.

[COUNTY DIRECT DISTRIBUTION ALLOCATIONS]

(c)

Funds appropriated in paragraphs (a)(ii) and (iv) of this section are to be distributed to counties with one-half (1/2) of the amount available distributed in the first fiscal year of the biennium and one-half (1/2) of the amount available distributed in the second fiscal year of the biennium. Distributions in each fiscal year shall be made in equal amounts on August 15 and January 15 of each fiscal year as calculated prior to the August 15 distribution. From these distributions each county shall receive the following:

(i)

From these distributions each county with an assessed value for the prior tax year corresponding to the most recently completed calendar year of less than three hundred thousand dollars ($300,000.00) per mill shall first receive an amount equal to three (3) times the difference between three hundred thousand dollars ($300,000.00) and the actual value of one (1) mill within the county. From the remainder, each county shall receive amounts in accordance with a county supplemental funding formula as provided in this paragraph. The county supplemental funding formula shall be calculated by the office of state lands and investments as follows:

(A)

For each fiscal year calculate the per capita sales and use tax revenues available to each county using the sales and use tax distributions to each county attributable to fiscal year 2021 for distributions under this subsection during fiscal year 2023 and the sales and use tax distributions to each county attributable to fiscal year 2022 for distributions under this subsection during fiscal year 2024, excluding distributions to each municipality within that county, under W.S. 39
‑
15
‑
111 and 39
‑
16
‑
111;

(B)

Calculate the inverse by dividing one (1) by the per capita sales and use tax determined under subparagraph (A) of this paragraph for each county;

(C)

Calculate the normalized per capita sales and use tax number for each county by dividing the number determined under subparagraph (B) of this paragraph for the county by the total of all inverse per capita sales and use tax numbers calculated under subparagraph (B) of this paragraph;

(D)

Multiply the normalized per capita sales and use tax number determined under subparagraph (C) of this paragraph for each county by twenty-four percent (24%);

(E)

For each fiscal year calculate the per capita assessed value for each county by dividing the total assessed valuation within the county for the prior tax year corresponding to the most recently completed calendar year by the population of the county;

(F)

Calculate the inverse by dividing one (1) by the per capita assessed value determined under subparagraph (E) of this paragraph for each county;

(G)

Calculate the normalized per capita assessed value number for each county by dividing the number determined under subparagraph (F) of this paragraph for the county by the total of all inverse per capita assessed value numbers calculated under subparagraph (F) of this paragraph;

(H)

Multiply the normalized per capita assessed value number determined under subparagraph (G) of this paragraph for each county by seventy-six percent (76%);

(J)

Calculate a cost of government index for each county, which shall be determined by multiplying six hundred twenty-eight (628) by the population of the county and then adding nine million nine hundred thousand (9,900,000) to the result;

(K)

Calculate the normalized cost of government index number for each county by dividing the number determined under subparagraph (J) of this paragraph for the county by the total of all cost of government index numbers calculated under subparagraph (J) of this paragraph;

(M)

Multiply the sum of subparagraphs (D) and (H) of this paragraph by the normalized cost of government index number determined in subparagraph (K) of this paragraph for each county;

(N)

Calculate the normalized index for each county by dividing the number determined under subparagraph (M) of this paragraph for the county by the total of all numbers calculated under subparagraph (M) of this paragraph;

(O)

Determine the amount to distribute to each county by multiplying the normalized index number determined under subparagraph (N) of this paragraph by the amount remaining available for distribution under this paragraph.

[CITY, TOWN AND COUNTY MODIFIED REVENUE CHALLENGED DISTRIBUTIONS]

Section 2
.

(a)

From the general fund there is appropriated fifteen million dollars ($15,000,000.00) to the office of state lands and investments to be allocated in an identical manner as provided under Section 1 of this act except as follows:

(i)

In lieu of five percent (5%) of the amount available under paragraph (a)(i) of section 1 for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of section 1, ten percent (10%) of two-thirds (2/3) of eighty-nine percent (89%) of the fifteen million dollars ($15,000,000.00) appropriated under this section shall be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in

paragraph (b)(ii) of section 1 of this act;

(ii)

In lieu of five percent (5%) of the amount available under paragraph (a)(iii) of section 1 for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of section 1, ten percent (10%) of five and one-half percent (5.5%) of the fifteen million dollars ($15,000,000.00) appropriated under this section shall be distributed for direct distributions to cities and towns using the revenue challenged formula as provided in paragraph (b)(ii) of section 1 of this act;

(iii)

In lieu of receiving an amount equal to three (3) times the difference between three hundred thousand dollars ($300,000.00) and the actual value of one (1) mill within the county as provided in paragraph (c)(i) of section 1, each county with an assessed value for the prior tax year corresponding to the most recently completed calendar year of less than three hundred thousand dollars ($300,000.00) per mill shall first receive an amount equal to the difference between three hundred thousand dollars ($300,000.00) and the actual value of one (1) mill within the county.

From the remainder of the amount available for direct distribution to counties, each county shall receive amounts in accordance with a county supplemental funding formula as provided in subparagraphs (c)(i)(A) through (O) of section 1 of this act.

Section 3.

(a)

For purposes of this act, population is to be determined by resort to the 2020 decennial federal census as reported by the economic analysis division within the department of administration and information.

(b)

It is the intent of the legislature that the funds distributed under this act shall not be used for salary adjustments, additional personnel or increased personnel benefits.

(c)

It is the intent of the legislature that the funds distributed under this act shall not be used for any compensation to the members of any board for which the board of county commissioners appoints members, unless compensation is otherwise required by law.

Section 4
.

This act is effective July 1, 2022
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1