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22LSO-0434
2022
STATE OF WYOMING
22LSO-0434
ENGROSSED
3.0
HOUSE BILL NO. HB0147
Annual cash based budget development.
Sponsored by: Representative(s) Barlow, Gray, Harshman, Jennings and Olsen and Senator(s) Case, Driskill and Hicks
A BILL
for
AN ACT relating to state budgeting; providing that recommended appropriations in the state budget shall be limited to specified prior revenues; amending revenue distribution and fund transfers; providing for annual budget development; requiring a study; specifying legislative intent; sunsetting conflicting provisions; providing that provisions in the act are contingent on specified funding levels; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 9
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2
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1013(d)(intro), (ii), (iii)(B) and by creating a new paragraph (vii), 9
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4
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219(b),
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719(b)(intro) and 39-14-801(b)(v) and (vi) are amended to read:
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1013.
State budget; distribution of copies to legislators; copies and reports of authorizations; interfund loans.
(d)
In addition to the items contained in subsection (a) of this section and notwithstanding any other recommendations made by the governor, the state budget shall also include the governor's recommendations for appropriations for the ensuing
two (2) years
fiscal period
, or if a supplemental budget request, the remainder of the budget period, subject to the following:
(ii)
The total recommended appropriations under this subsection for any two (2) fiscal year budget period shall not exceed the total estimated revenues for that two (2) year period.
The total estimated revenues computed under this paragraph shall not include increases in existing revenue sources which would be available to the state only after enactment of legislation in addition to existing law, but shall include the unencumbered balances
in all other accounts in all other expendable funds subject to this section, and as further provided herein, as those funds are identified in accordance with standards promulgated by the governmental accounting standards board, but specifically excluding pension funds, nonexpendable trust funds, debt service funds and intragovernmental funds, that would be available for that budget period.
Funds within the permanent Wyoming mineral trust fund reserve account created under W.S. 9
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719(b), the common school permanent fund reserve account created under W.S. 9
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719(f) funds within the legislative stabilization reserve account in excess of the limitation under subparagraph (iii)(C) of this section, or funds within five percent (5%) of estimated general fund receipts for the next biennium to be appropriated to the budget reserve account as required by W.S. 9
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1012(e) shall not be included in total estimated revenues computed under this paragraph.
Funds from a contingent appropriation shall not be included as an estimated source of revenue or funds available unless those funds previously had been authorized to be expended within the fiscal period covering the budget period of the recommendation
.
This paragraph is repealed effective July 1, 2023
;
(iii)
The total recommended appropriations under this subsection shall not include any of the following:
(B)
The transfer of funds from an account to another account except transfers from the budget reserve account
. This subparagraph is repealed effective July 1, 2023
;
(vii)
Beginning July 1, 2023, the total recommended annual appropriations from the general fund under this subsection for any one (1) fiscal year budget period shall not exceed the total revenue to the general fund and budget reserve account attributable to the immediately preceding three (3) fiscal years as determined by the state auditor, multiplied by one-third (1/3).
The total revenue computed under this paragraph shall not include any reversions of previously appropriated funds or revenues subject to statutory transfers required under W.S. 9
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719.
9
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4
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219.
Legislative stabilization reserve account created; purposes; legislative deficit control account.
(b)
To the extent funds are available after all other appropriations or transfers from the legislative stabilization reserve account to be made on or prior to June 30 of the applicable fiscal year have been made, an amount necessary to restore the unobligated, unencumbered balance within the public school foundation program account to one hundred million dollars ($100,000,000.00) on June 30 of each fiscal year shall be transferred from the legislative stabilization reserve account into the public school foundation program account. This subsection is repealed the month immediately following the date that the state auditor and the state treasurer first certify to the governor and the department of revenue, and the governor certifies the same to the secretary of state, that the unobligated, unencumbered balance in the legislative stabilization reserve account is less than
five hundred million dollars ($500,000,000.00)
one hundred million dollars ($100,000,000.00)
.
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719.
Investment earnings spending policy permanent funds.
(b)
There is created the permanent Wyoming mineral trust fund reserve account. All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account. Beginning July 1, 2021 for fiscal year 2022 and each fiscal year thereafter, to the extent funds are available, the state treasurer shall transfer unobligated funds from this account to the general fund on a quarterly, pro
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rata basis as necessary to ensure that an amount equal to two and one
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half percent (2.5%) of the previous five (5) year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year, is available for expenditure during each fiscal year. As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2017, after making any transfer required pursuant to paragraphs (i) and (ii) of this subsection, revenues in this account in excess of
one hundred fifty percent (150%)
three hundred percent (300%)
of the spending policy amount in subsection (d) of this section shall be credited to the permanent Wyoming mineral trust fund. For fiscal year 2020 and for each fiscal year thereafter:
39
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14
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801.
Severance tax distributions; distribution account created; formula.
(b)
Before making distributions from the severance tax distribution account under subsections (c) through (e) of this section, an amount equal to two
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thirds (2/3) of the amount of tax collected under W.S. 39
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104(a)(i) and (b)(i) and 39
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204(a)(i) for the same period shall be deposited as follows:
(v)
For fiscal year 2023 through fiscal year
2028
2026
these funds shall be deposited
equally
to the
permanent Wyoming mineral trust fund and to the common school account within the permanent land fund
legislative stabilization reserve account
;
(vi)
For fiscal year
2029
2027
and thereafter these funds shall be deposited
two-thirds (2/3)
equally
to the permanent Wyoming mineral trust fund and
one-third (1/3) to
the common school account within the permanent land fund.
Section 2.
W.S. 9-4-719(f) is amended to read:
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719.
Investment earnings spending policy permanent funds.
(f)
There is created the common school permanent fund reserve account. All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.
Beginning July 1, 2017 for fiscal year 2018 and each fiscal year thereafter, the state treasurer shall transfer unobligated funds from this account to the common school account within the permanent land income fund as necessary to ensure that an amount equal to the spending policy amount established in subsection (h) of this section is available for expenditure annually during the fiscal year.
As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2017, revenues in this account in excess of
one hundred fifty percent (150%)
three hundred percent (300%)
of the spending policy amount shall be credited to the common school account within the permanent land fund.
Section 3
.
(a)
The joint appropriations committee shall review statutory references to biennial budgeting and all statutory revenue deposits to the general fund and budget reserve account and recommend any statutory revisions required to implement an annual, cash based budgeting framework in the most efficient manner beginning with the 2025 annual budget period.
The joint appropriations committee shall also review the distribution of severance taxes, federal mineral royalties and investment income and recommend statutory revisions to ensure not less than two billion dollars ($2,000,000,000.00) are available for expenditure in the legislative stabilization reserve account on June 30, 2023. The joint revenue interim committee and the joint appropriations committee shall report any recommended legislation to the legislature not later than October 15, 2022.
(b)
It is the intent of the legislature that:
(i)
N
ot less than fifty percent (50%) of the 2025 annual general fund budget be derived from appropriations or transfers from the legislative stabilization reserve account; and
(ii)
The
2025 annual general fund budget
include a commensurate deposit to the legislative stabilization reserve account equal to the amount of revenue deposited to the general fund and budget reserve account for the period beginning July 1, 2022 and ending June 30, 2023, excluding reversions, federal funds, special revenue or statutory transfers from the general fund required by W.S. 9
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719.
Section 4.
(a)
Except as provided in subsection (b) of this section, this act shall be effective July 1, 2023 only upon certification by the state auditor that the unexpended, unobligated balance of the legislative stabilization reserve account on June 30, 2023 exceeds two billion dollars ($2,000,000,000.00).
(b)
Sections 2 through 4 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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HB0147