State budgeting and reserves.

23LSO-0379
2023
STATE OF WYOMING
23LSO-0379
Numbered
2.0

SENATE FILE NO. SF0145

State budgeting and reserves.

Sponsored by: Senator(s) Kinskey and Hicks

A BILL

for

AN ACT relating to public funds; repealing accounts and subaccounts as specified; amending appropriations, loan authority, distributions and transfers of funds as specified; amending local government audit withholding requirements; modifying the distribution of revenues as specified; authorizing specified state permanent fund reserve accounts to maintain larger balances; requiring certifications before specified investment activities; providing for the transfer of funds to specified reserve accounts; requiring the repayment of transferred funds as specified; providing that balances in specified reserve accounts are intended to be inviolate; removing encumbrances on specified reserve accounts; repealing a guarantee for the school foundation program account; defining legislative intent for future appropriations and budget requests; providing legislative findings; providing for the transfer from and reversion of funds to the repealed accounts and subaccounts; making conforming amendments; repealing obsolete language; requiring reports; and providing for effective dates.

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

Section 1.

W.S. 9
‑
1
‑
417(a), 9
‑
1
‑
507(j)(i), 9
‑
2
‑
102(a)(iii), 9
‑
2
‑
1012(e), 9
‑
2
‑
1013(d)(ii), (iii)(B), (iv) and (vi), 9
‑
4
‑
203(a)(xiii), 9
‑
4
‑
305(b), 9
‑
4
‑
601(a)(ii), (b)(i)(intro), (iv)(A), (B), (d)(intro), (iv), (vi), (vii), (ix) and by creating a new subsection (o), 9
‑
4
‑
719(b)(intro), (f), (k), (q)(intro) and (i), 16
‑
1
‑
111(f), 21
‑
13
‑
306(a) and (b), 21
‑
13
‑
311(a), 21
‑
15
‑
108(a) and (d)(vii), 21
‑
15
‑
109(b), 21
‑
15
‑
117(d), 21
‑
15
‑
119(a)(ii)(A) and (C), 21
‑
15
‑
120(b), 21
‑
16
‑
720(b), 21
‑
16
‑
1302(b), 35
‑
1
‑
1002(a)(vi), 35
‑
11
‑
528(e), 35
‑
11
‑
529, 39
‑
14
‑
801(d)(intro) and 39
‑
19
‑
111(a)(intro) are amended to read:

9
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1
‑
417.

Interfund loans; repayment; maximum amount; interest.

(a)

The state treasurer and the state auditor may utilize interfund loans from the legislative stabilization reserve account, or the general fund if insufficient funds exist in the legislative stabilization reserve account, to any other fund or account to meet obligations which come due prior to receipt of revenues. The interfund loans shall be repaid as soon as the anticipated revenue is received. The total amount of interfund loans under this subsection outstanding at one (1) time shall not exceed sixty million dollars ($60,000,000.00). These loans shall not be used to fund shortages caused by expenditures exceeding projected revenues but are to be used only to fund temporary shortages caused by meeting obligations which come due prior to receipt of revenues.

The interest charged on each interfund loan under this subsection, other than to the general fund
,

or budget reserve account,
shall be the interest rate earned on pooled fund investments in the previous fiscal year.

9
‑
1
‑
507.

Examination of books of state institutions, agencies and certain districts and entities; independent audit authorized; guidelines.

(j)

The director of the department of audit shall certify:

(i)

To the state treasurer and state auditor by October 5 of each year, a list of counties, cities and towns that failed to comply with paragraph (a)(vii) of this section. The state treasurer shall withhold the annual distribution
, which would otherwise be
made
under W.S. 9
‑
2
‑
1014.1,
by any legislative appropriation
to any county, city or town failing to comply with paragraph (a)(vii) of this section. The withheld distribution shall be retained in the
budget reserve account
general fund
until the director of the department of audit certifies that the county, city or town has filed the required report. The state auditor shall immediately notify all state agencies and boards of every county, city or town that failed to comply with paragraph (a)(vii) of this section. Upon receipt of notification by the state auditor pursuant to this paragraph, a state agency or board shall withhold state grant and loan payments to every noncompliant county, city or town for the period after October 15 until further notice from the state auditor that a noncompliant county, city or town has come into compliance with paragraph (a)(vii) of this section. The department of audit shall certify to the state auditor when a county, city or town comes into compliance with paragraph (a)(vii) of this section. The state auditor shall immediately notify all state agencies and boards of every county, city or town that has come into compliance with paragraph (a)(vii) of this section. Any withheld state grant or loan payments shall be retained by the state agency or board in the account from which the disbursement would be made until the state agency or board receives notification from the state auditor that the county, city or town is in compliance with paragraph (a)(vii) of this section, or as otherwise provided by law;

9
‑
2
‑
102.

Department of health; duties and responsibilities; state grants.

(a)

The department of health is the state mental health authority, the developmental disabilities authority and the substance abuse authority. The department through its divisions has the following duties and responsibilities to:

(iii)

Establish minimum standards and approve policies and procedures for the establishment and operation of community
‑
based mental health, substance abuse and developmental disabilities programs receiving state support.

The department through its mental health division and its substance abuse division shall annually withhold not less than five percent (5%) of all amounts provided in each contract with a community
‑
based mental health, substance abuse or drug court program or provider and shall not release the funds withheld to the individual program or provider until the respective division and the individual program or provider enter into a written agreement that provides for performance and outcome measures.

If the respective division and an individual program or provider do not enter into a mutually agreed upon set of performance and outcome measures, the funds withheld under this paragraph shall revert to the
budget reserve account
general fund
at the end of the biennium in which the funds were withheld;

9
‑
2
‑
1012.

Duties of the department; transmittal of standard budget and manual; return of completed exception and expanded budgets; submission to governor; disposition of excess general fund appropriations; submission of selected budget information to joint appropriations committee.

(e)

In preparing the overall state budget for distribution to the legislature, including any supplemental, budget shortfall or other emergency changes to the budget, the governor shall recommend to the legislature that not less than five percent (5%) of estimated general fund receipts for the next biennial budget period shall be
appropriated from the general fund to the budget reserve account within the earmarked fund. This appropriation shall be in addition to any fund balance within the budget reserve account. At the end of each biennial budget period, general fund appropriations for the biennium in excess of expenditures including encumbrances during the biennium, as identified by the state auditor in accordance with the provisions of W.S. 9
‑
2
‑
1008 and 9
‑
4
‑
207, shall be transferred into the budget reserve account. All funds in the budget reserve account shall be invested by the state treasurer and earnings therefrom shall be credited into the general fund. Appropriations to the account shall not lapse at the end of any fiscal period. Expenditures from the budget reserve account shall be by legislative appropriation only
maintained in the general fund as a reserve amount
.
This general fund reserve amount shall not be included in any request for appropriation during the biennial budget period for which it is recommended. Subject to accrual accounting principles, any unappropriated, unexpended and unobligated funds in the general fund on June 30 in the last year of each biennial budget period in excess of the general fund reserve amount recommended under this subsection shall be transferred to the legislative stabilization reserve account.

9
‑
2
‑
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, 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
‑
4
‑
719(b),
funds within
the common school permanent fund reserve account created under W.S. 9
‑
4
‑
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
subsection and the general fund reserve amount specified
by W.S. 9
‑
2
‑
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;

(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;

(iv)

As used in this subsection, "appropriations" include
any of the following:

(A)

S
pecific legislative authorization to expend state revenues contained in a budget bill that is enacted into law
;
,

(B)

A
n amount to be expended from an account which does not require additional specific legislative authorization
;
, the transfer of funds from the budget reserve account to another account or

(C)

A
specific statutory distribution of a revenue source
.
;

(vi)

Nothing in this subsection prevents the governor from recommending an additional, alternative budget without the limitations specified in this subsection
or from including recommendations for additional funding for state agencies and for local governments from federal mineral royalties or severance tax distributions
.

9
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4
‑
203.

Definitions.

(a)

As used in this act:

(xiii)

"This act" means W.S.
9
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4
‑
201
9
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4
‑
202
through
9
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4
‑
224
9
‑
4
‑
225
.

9
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4
‑
305.

Disposition of state land revenue.

(b)

Proceeds from the sale of state lands, mineral royalties and any money designated by the Wyoming constitution or Wyoming statutes as collected shall be transmitted to the state treasurer and credited to the proper accounts within the permanent land fund. As authorized by article 7, section 2 of the Wyoming constitution, thirty
‑
three and one
‑
third percent (33 1/3%) of the mineral royalties received from the lease of any school lands shall be deposited into the
public
school
lands mineral royalties
foundation program
account. To the extent constitutionally permissible and notwithstanding any other provision of law, at the end of every fiscal year, the state treasurer shall transfer to the corpus of each account within the permanent land fund, except the common school account, from the income earned on the corresponding account within the permanent land fund, to the extent available, an amount as provided by this subsection.

In determining the amount to be withheld, the state treasurer shall calculate the fiscal year beginning balance and ignore any appropriations made from the account within that fiscal year. For the fiscal year 2000, he shall transfer an amount equal to five percent (5%) of the inflation rate for the previous twelve (12) month period as determined by the department of administration and information multiplied by the beginning balance of each permanent land fund account, except the common school account. At the end of each succeeding fiscal year, the state treasurer shall increase the amount to be multiplied by that year's inflation rate by five percent (5%) until such time as the multiplier reaches one hundred percent (100%) of the inflation rate, and then multiply that amount by the beginning balance of each permanent land fund account, except the common school account.

9
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4
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601.

Distribution and use; funds, accounts, cities and towns benefited; exception for bonus payments.

(a)

All monies received by the state of Wyoming from the secretary of the treasury of the United States under the provisions of the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191), as amended, or from lessees or authorized mine operators and all monies received by the state from its sale of production from federal mineral leases subject to the act of congress of February 25, 1920 (41 Stat. 437, 450; 30 U.S.C. §§ 181, 191) as amended, except as provided by subsection (b) of this section, shall be deposited into an account and the first two hundred million dollars ($200,000,000.00) of revenues received in any fiscal year shall be distributed by the state treasurer as provided in this subsection. One percent (1%) of these revenues shall be credited to the general fund as an administrative fee, and the remainder shall be distributed as follows:

(ii)

Subject to
paragraph (xi)
subsection (o)
of this section,
forty
‑
four and eight
‑
tenths percent (44.8%)
forty
‑
seven and one
‑
half percent (47.5%)
to the public school foundation program account subject to allocations under W.S. 9
‑
4
‑
605;

(b)

The state treasurer shall ascertain and withhold all bonus payments received from the federal government attributable to coal, oil shale or geothermal leases of federal land within Wyoming and shall distribute it as follows:

(i)

Fifty percent (50%), the first seven million five hundred thousand dollars ($7,500,000.00) of which shall be distributed as follows, and any amount in excess of seven million five hundred thousand dollars ($7,500,000.00) per year shall be deposited into the
public
school
capital construction account established under W.S. 21
‑
15
‑
111(a)(i), except for fiscal years 2019, 2021 and 2022 amounts in excess of seven million five hundred thousand dollars ($7,500,000.00) per year shall be deposited to the school
foundation program
reserve
account
:
created by W.S. 21
‑
13
‑
306.1:

(iv)

And:

(A)

Ten percent (10%) but not to exceed one million six hundred thousand dollars ($1,600,000.00) per year, to a separate account which may be expended by the community college commission in accordance with and in addition to appropriations available under W.S. 21
‑
18
‑
205(c). Any amount in excess of one million six hundred thousand dollars ($1,600,000.00) together with any unexpended revenues within the account at the end of any biennial budget period shall be credited to the
public
school
capital construction account established under W.S. 21
‑
15
‑
111(a)(i), except for fiscal years 2019, 2021 and 2022 these funds shall be deposited to the school
foundation program
reserve
account
;
created by W.S. 21
‑
13
‑
306.1;

(B)

Forty percent (40%) to be deposited to the
public
school
capital construction account established under W.S. 21
‑
15
‑
111(a)(i), except for fiscal years 2019, 2021 and 2022 these funds shall be deposited to the school
foundation program
reserve
account
.
created by W.S. 21
‑
13
‑
306.1.

(d)

Except as provided in
subsections (k), (m) and (n)
subsection (o)
of this section, any revenue received under subsection (a) of this section in excess of two hundred million dollars ($200,000,000.00) shall be distributed as follows:

(iv)

Subject to paragraphs (vii) and (ix) of this subsection, two
‑
thirds (2/3) to the
budget reserve account
general fund
;

(vi)

From the amounts which would otherwise be distributed to the school foundation program account under paragraph (iii) of this subsection
,

and paragraphs (k)(i), (m)(i) and (n)(i) of this section,
there is annually appropriated to the common school permanent fund reserve account the amount determined under W.S. 9
‑
4
‑
719(g).

The appropriation shall be credited to the account as provided in W.S. 9
‑
4
‑
719(g);

(vii)

From the amounts that would otherwise be distributed to the
budget reserve account
general fund
under paragraph (iv) of this subsection
and paragraphs (k)(ii), (m)(ii) and (n)(ii) of this section,
amounts necessary to make the required revenue bond payments as provided by W.S. 9
‑
4
‑
1003(d), but in no event more than eighteen million dollars ($18,000,000.00) annually;

(ix)

For the period beginning July 1, 2019 and ending June 30, 2049, from the amounts that would otherwise be distributed to the
budget reserve account
general fund
under paragraph (iv) of this subsection, the first eight million dollars ($8,000,000.00) shall be distributed to a separate account for the University of Wyoming.

These funds are continuously appropriated to the university upon deposit to the account. The University of Wyoming shall reduce its standard budget request for the 2021
‑
2022 biennium by an amount equal to the maximum amount of funds authorized to be deposited under this paragraph.

The University of Wyoming shall acknowledge this reduction of its 2021
‑
2022 budget request pursuant to this paragraph in each standard budget request submitted to the governor's office through June 30, 2048.

(o)

Beginning in fiscal year 2025 and until three hundred fifty
‑
nine million one hundred thousand dollars ($359,100,000.00) is deposited into the legislative stabilization reserve account pursuant to this subsection, all amounts which would otherwise be distributed to the school foundation program account on and after July 1, 2024 under paragraphs (a)(ii) and (d)(iii) and subparagraph (d)(v)(C) of this section, and after making the transfers required by W.S. 9
‑
4
‑
719(g), shall be deposited into the legislative stabilization reserve account.

9
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4
‑
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
‑
4
‑
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
‑
rata basis as necessary to ensure that an amount equal to two and one
‑
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.
Except for funds specified by the legislature that guarantee the obligations of permanent Wyoming mineral trust fund investment earnings and funds to be transferred into the permanent Wyoming mineral trust fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund.
As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2017, after making
any transfer
the reconciliation
required pursuant to
paragraphs (i) and
paragraph
(ii) of this subsection, revenues in this account in excess of
one hundred fifty percent (150%)
two hundred forty
‑
five percent (245%)
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:

(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
‑
4
‑
715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.

Except for funds specified by the legislature that guarantee the obligations of the investment earnings from the common school account within the permanent land income fund and funds to be transferred into the common school account within the permanent land fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund.

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%)
four hundred twenty percent (420%)
of the spending policy amount shall be credited to the common school account within the permanent land fund.

(k)

There is created the excellence in higher education endowment reserve account. Interest and other earnings on funds within the account shall be credited to the account.

Except for funds specified by the legislature that guarantee the obligations of excellence in higher education endowment fund investment earnings and funds to be transferred into the excellence in higher education endowment fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund.

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%)
two hundred ten percent (210%)
of the spending policy amount in subsection (o) of this section shall be credited to the excellence in higher education endowment fund created by W.S. 9
‑
4
‑
204(u)(vi).

(q)

The earnings from the permanent Wyoming mineral trust fund under W.S. 9
‑
4
‑
204(u)(iii) during each fiscal year beginning July 1, 2016, which are less than the spending policy established in subsection (d) of this section are appropriated from the general fund subject to
subsection (s) of this section and
the following:

(i)

Any earnings in excess of two and one
‑
half percent (2.5%) of the previous five (5) year average market value of the trust fund, calculated from the first day of the fiscal year and less than or equal to the spending policy amount specified in subsection (d) of this section shall be credited to the legislative stabilization reserve account created by W.S. 9
‑
4
‑
219
;
and the strategic investments and projects account created by W.S. 9
‑
4
‑
220 in equal amounts;

16
‑
1
‑
111.

Loans to political subdivisions; requirements; limitations; rulemaking
.

(f)

There is created a loss reserve account for loans made under this section. A loan origination fee of one
‑
half of one percent (0.5%) of the loan shall be paid by the loan applicant and deposited to the loss reserve account for any loan approved under this section. If, as a result of default in the payment of any loan made under this section, there occurs a nonrecoverable loss either to the corpus of, or interest due to the permanent Wyoming mineral trust fund, the board shall restore the loss to the permanent fund using any funds available in the loss reserve account. If the funds in the loss reserve account are insufficient to restore the full amount of the loss, the board shall submit a detailed report of the loss to the legislature and shall request an appropriation to restore the balance of the loss to the permanent fund.
Beginning June 30, 2018, the state treasurer shall transfer funds quarterly from the permanent Wyoming mineral trust fund reserve account to the loss reserve account created in this subsection, in an amount necessary to ensure that as of the last day of each quarter there is an unobligated, unencumbered balance equal to five percent (5%) of the balance of outstanding loans under this section.

Any funds transferred to the loss reserve account pursuant to this subsection which are not necessary to maintain the five percent (5%) balance shall be transferred back to the permanent Wyoming mineral trust fund reserve account on the last day of the quarter.

21
‑
13
‑
306.

Foundation program account established; disposition of monies.

(a)

The public school foundation program account is established to consist of funds appropriated to, or designated to the account by law, or by gift from whatever source, for distribution to districts in accordance with
this article
law
.

(b)

Within the limits of legislative appropriation, if any, the resources of the public school foundation
program
account shall be paid into the state treasury and shall be drawn out and distributed to the districts
in accordance with this article
upon certification of the state superintendent and upon vouchers approved by the state auditor payable to the treasurer of the several districts.

21
‑
13
‑
311.

Determination of amount to be distributed to each district from foundation account; undistributed balance; prohibition on expenditures.

(a)

The amount of money which shall be distributed to each district
in accordance with this article
from the
public school
foundation
program
account shall be determined by subtracting the sum of the district revenues computed in accordance with W.S. 21
‑
13
‑
310 from the total amount of the foundation program computed in accordance with W.S. 21
‑
13
‑
309.

21
‑
15
‑
108.

Revenue bonds for grants and loans; refunding revenue bonds.

(a)

Before distribution to the
public
school
lands mineral royalties
foundation program
account under W.S. 9
‑
4
‑
305(b), sufficient revenues for the purposes of this section shall be deducted therefrom and credited to a bond repayment account pursuant to the terms of the resolution, indenture or other appropriate proceeding authorizing the issuance of revenue bonds under this section.

The revenues deducted shall be used as provided by this section.

The balance of the revenues shall be credited to the
public
school
lands mineral royalties
foundation program
account as provided under W.S. 9
‑
4
‑
305(b).

After available revenues under W.S. 9
‑
4
‑
305(b) have been used, revenues under W.S. 21
‑
13
‑
301 shall also be credited, as necessary, to the bond repayment account and shall be used as provided by this section.

(d)

Any bonds issued under this section shall:

(vii)

Be additionally secured by a reserve fund created from revenues deposited within the
public
school
lands mineral royalties
foundation program
account under W.S. 9
‑
4
‑
305(b) or from the proceeds of the bonds, or both, in an amount determined by the commission but not to exceed an amount equal to ten percent (10%) of the revenue bonds outstanding.

21
‑
15
‑
109.

Major building and facility repair and replacement payments; computation; square footage allowance; use of payment funds; accounting and reporting requirements.

(b)

To the extent funds are available, the state construction department shall, based upon square footage computations computed from the prior school year, distribute the estimated major building and facility repair and replacement payments in quarterly installments to each school district from the
public
school
capital construction
foundation program
account. The department shall distribute the first quarterly payment on July 1 of each fiscal year, with the remaining payments distributed on October 1, January 2 and April 1.

Payments shall be made as equal as reasonably possible.

If funds within the account are not sufficient for any quarterly payment, the department shall reduce all district payments for that quarter by a uniform percentage. The department shall also increase or reduce a subsequent school district payment, as appropriate, in the event a school district receives an excessive or deficient distribution. Major building and facility repair and replacement payments shall be computed in accordance with subsection (c) of this section.

21
‑
15
‑
117.

Annual evaluation of school buildings and facilities; remediation schedules; needs prioritization; combining facilities; implementation of remedy.

(d)

In determining building and facility remedies under subsection (b) of this section, in developing criteria and procedures for site analysis under W.S. 21
‑
15
‑
114(a)(xii) and in approving district facility plans under W.S. 21
‑
15
‑
116 and otherwise administering this act, the commission shall adopt the remedy that is in the best financial and educational interests of the state, taking into consideration the recommendations of the department and the most efficient and cost effective approach in order to deliver quality educational services and address building and facility need.

Expenditures from the
public school foundation program account for
school capital construction
account
shall be for necessary and related costs to implement efficient and cost effective building and facility remedies required to deliver quality educational services. In making determinations under this subsection, the commission shall take into consideration the effects of the proposed activity on the local community.

The commission shall implement this subsection in carrying out building and facility remedies and shall, giving proper consideration to the prevention of unnecessary delays in proceeding with a remedy, establish a process to work with other political subdivisions of the state in implementing this subsection.

21
‑
15
‑
119.

Commission budget and funding recommendations.

(a)

Notwithstanding W.S. 9
‑
2
‑
1012, the commission shall annually, not later than September 1, develop and submit a recommended budget for projects and school capital construction financing to the governor, through the state budget department and to the select committee on school facilities. The department shall prepare and provide information as requested by the commission.

The commission shall include with its recommended budget to the select committee the prioritized schedules of projects specified in W.S. 21
‑
15
‑
117 including the amounts allocated to each project and the annual building status report specified under W.S. 21
‑
15
‑
121. The recommended budget submitted by the commission shall include:

(ii)

Financing alternatives for funding the recommended budget, which uses any combination of the following financing alternatives:

(A)

Direct payment from the
public
school
capital construction
foundation program
account;

(C)

Real property leasing under W.S. 21
‑
15
‑
112.

Any payments for real property leasing shall be made from the
public
school
capital construction
foundation program
account subject to W.S. 21
‑
15
‑
112. For the purpose of this section, real property leasing includes payments sufficient for the exercise of a purchase option under the lease.

21
‑
15
‑
120.

Emergency facility needs.

(b)

Upon a finding that an emergency exists under subsection (a) of this section, the commission shall in accordance with rules and regulations promulgated by the commission under this subsection and to the extent funds are available within the
public
school
capital construction
foundation program
account or otherwise made available by the legislature, acquire facilities and equipment, undertake school building and facility repairs, fund additional operating expenses incurred in providing temporary measures and other responses to the emergency situation including necessary investigative and qualified contract assistance expenses incurred by the commission, as necessary to enable the district to provide educational programs required by law on a temporary basis until permanent action can be taken to address school building and facility adequacy.

21
‑
16
‑
720.

Annual report and budget.

(b)

The authority shall submit its budget for review as provided by W.S. 9
‑
2
‑
1010 through
9
‑
2
‑
1014.1
9
‑
2
‑
1014
.

21
‑
16
‑
1302.

Hathaway scholarship expenditure account created; reserve account created; use and appropriation of funds
.

(b)

There is created the Hathaway student scholarship reserve account. The reserve account shall consist of those monies deposited to the account pursuant to subsection (a) of this section and such other funds appropriated by the legislature to the reserve account. Interest and other earnings on funds within the reserve account shall be credited to the reserve account.

Except for funds specified by the legislature that guarantee the scholarship obligations of the Hathaway scholarship expenditure account and funds to be transferred into the Hathaway student scholarship endowment fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund.
To the extent funds within the Hathaway scholarship expenditure account are insufficient in any fiscal year to fully fund scholarships awarded under this article, monies within the reserve account shall be deposited by the state treasurer to the expenditure account for distribution to eligible institutions to fund those scholarships. As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2007, the state treasurer shall transfer monies from this reserve account to the Hathaway student scholarship endowment fund to the extent monies within the reserve account are in excess of the greater of
twelve million dollars ($12,000,000.00)
forty
‑
seven million dollars ($47,000,000.00)
or an amount equal to
four and one
‑
half percent (4.5%)
eight percent (8%)
of the previous five (5) year average market value of the Hathaway student scholarship endowment fund, calculated from the first day of the fiscal year. The state treasurer shall report not later than November 1, of each year to the joint education interim committee and the select committee on capital financing and investments the amount of funds within the reserve account at the end of the previous fiscal year and as of July 1, of the current fiscal year.

35
‑
1
‑
1002.

Definitions.

(a)

As used in this article:

(vi)

"Unobligated," for purposes of W.S. 35
‑
1
‑
1003(b)
,

and (d),
means no commitment meeting the requirements of subparagraph (iii)(B) of this subsection was received prior to June 30, 2012.

35
‑
11
‑
528.

Municipal solid waste facilities cease and transfer program created; criteria for grants and loans; loan terms; availability of other state funding sources.

(e)

Loans may be made under the program at zero interest rate, up to an annual interest rate equal to the average prime interest rate as determined in accordance with this subsection. Loans provided under the program shall be adequately collateralized as determined by the state loan and investment board. Principal and interest payments shall be deposited in the
budget reserve account
general fund
. The state loan and investment board shall establish interest rates to be charged for loans under the program, but the interest rate shall not exceed an annual interest rate equal to the average prime interest rate as determined by the state treasurer.

To determine the average prime interest rate, the state treasurer shall average the prime interest rate for at least seventy
‑
five percent (75%) of the thirty (30) largest banks in the United States.

The interest rate shall be adjusted on January 1 of each year.

Interest rates shall be established in recognition of the repayment abilities and needs of the local municipal solid waste facility operator eligible for loans under the program.

The state loan and investment board shall establish loan amortization schedules, terms and conditions for each loan approved based on an applicant's need, financial condition of the landfill operator or the entity responsible for solid waste funding, the projected life of the transfer facility and the ability of that entity to repay the loan in a timely manner.

35
‑
11
‑
529.

Municipal solid waste facilities cease and transfer accounts created; authorized expenditures from the accounts.

(a)

There is created the municipal solid waste cease and transfer grant account.

Monies from the account shall be awarded for grants to fund approved activities pursuant to W.S. 35
‑
11
‑
528.

Interest earned by this account shall be deposited in the
budget reserve account
general fund
. Notwithstanding W.S. 9
‑
2
‑
1008, 9
‑
2
‑
1012(e) and 9
‑
4
‑
207(a), funds deposited in this account shall not revert without further action of the legislature.

(b)

There is created the municipal solid waste cease and transfer loan account.

Monies from the account shall be awarded for loans to fund approved activities pursuant to W.S. 35
‑
11
‑
528.

Interest earned by this account shall be deposited in the
budget reserve account
general fund
.

Notwithstanding W.S. 9
‑
2
‑
1008, 9
‑
2
‑
1012(e) and 9
‑
4
‑
207(a), funds deposited in this account shall not revert without further action of the legislature.

39
‑
14
‑
801.

Severance tax distributions; distribution account created; formula.

(d)

After making distributions pursuant to subsections (b), (c), (f) and (j) of this section, distributions under subsection (e) of this section shall be made from the severance tax distribution account. The amount of distributions under subsection (e) of this section shall not exceed one hundred fifty
‑
five million dollars ($155,000,000.00) in any fiscal year. To the extent that distributions under subsection (e) of this section would exceed that amount in any fiscal year,
except as provided in subsections (g), (h) and (k) of this section,
the excess shall be credited
:

to the general fund.

39
‑
19
‑
111.

Distribution.

(a)

All money collected under W.S. 39
‑
19
‑
101 through 39
‑
19
‑
111 shall be credited
as follows:
to the general fund.

Section 2.

W.S. 9
‑
2
‑
1014.1, 9-4-219(b), 9
‑
4
‑
220, 9
‑
4
‑
220.1, 9
‑
4
‑
224, 9
‑
4
‑
601(a)(vii), (k) and (m), 9
‑
4
‑
715(p)(vi), 9
‑
4
‑
719(b)(i) and (s), 21
‑
15
‑
111(a)(i), 35
‑
1
‑
1003(d), 39
‑
14
‑
801(d)(i), (ii), (g) and (h) and 39
‑
19
‑
111(a)(i) and (ii) are repealed.

Section 3.

W.S. 9
‑
4
‑
601(n), as created by 2022 Wyoming Session Laws, Chapter 51, Section 315, and 39
‑
14
‑
801(k), as created by 2022 Wyoming Session Laws, Chapter 51, Section 314, are repealed.

Section 4.

For fiscal years 2023 and 2024, prior to the transfer of any funds required under W.S. 9
‑
4
‑
220.1 from the strategic investments and projects account to the Wyoming state penitentiary capital construction account, the state auditor shall first transfer any funds required under W.S. 9
‑
4
‑
220(b)(i) to the school major maintenance subaccount within the strategic investments and projects account.

Section 5
.

The budget reserve account, the strategic investments and projects account, the Wyoming state penitentiary capital construction account within the strategic investments and projects account and the school major maintenance subaccount within the strategic investments and projects account are repealed.

Section 6
.

(a)

On July 1, 2024, all funds in the budget reserve account, the strategic investments and projects account, the Wyoming state penitentiary capital construction account within the strategic investments and projects account and the school major maintenance subaccount within the strategic investments and projects account shall be transferred to the general fund. Any unexpended funds that have been appropriated or obligated from the accounts and subaccounts specified in this subsection prior to July 1, 2024 shall be paid from the general fund. Any funds that are directed to revert by law to the accounts and subaccounts specified in this subsection shall revert to the general fund.

(b)

On July 1, 2024, all funds in the school lands mineral royalties account and the school capital construction account shall be transferred to the public school foundation program account. Any unexpended funds that have been appropriated or obligated from the accounts and subaccounts specified in this subsection prior to July 1, 2024 shall be paid from the public school foundation program account. Any funds that are directed to revert by law to the accounts and subaccounts specified in this subsection shall revert to the public school foundation program account.

Section 7.

(a)

On the effective date of this section, the state auditor shall transfer:

(i)

Three hundred fifty
‑
nine million one hundred thousand dollars ($359,100,000.00), or as much thereof as is available, from the legislative stabilization reserve account to the common school permanent fund reserve account created by W.S. 9
‑
4
‑
719(f);

(ii)

Two hundred seventy
‑
four million seven hundred thousand dollars ($274,700,000.00), or as much thereof as is available, from the legislative stabilization reserve account to the permanent Wyoming mineral trust fund reserve account created by W.S. 9
‑
4
‑
719(b);

(iii)

Four million six hundred thousand dollars ($4,600,000.00), or as much thereof as is available, from the legislative stabilization reserve account to the Hathaway student scholarship reserve account created by W.S. 21
‑
16
‑
1302(b);

(iv)

One million two hundred thousand dollars ($1,200,000.00), or as much thereof as is available, from the legislative stabilization reserve account to the excellence in higher education endowment reserve account created by W.S. 9
‑
4
‑
719(k).

(b)

Amounts transferred pursuant to subsection (a) of this section shall be securely deposited into the reserve accounts required by subsection (a) of this section and shall not be invested or otherwise deposited in a manner inconsistent with the way in which funds in the respective reserve accounts were invested on July 1, 2022 until:

(i)

The state treasurer's office certifies in writing to the office of state lands and investments and the state loan and investment board that investment policy statements have been adopted pursuant to W.S. 9
‑
4
‑
716 that provide for the investment of the transferred amounts in accordance with law and as part of a total return investment strategy and that all accounting and financial reporting systems are available and are operating in a condition that allows fully compliant accounting and reporting on the investment and handling of all transferred funds and associated earnings; and

(ii)

The state loan and investment board, after having received and considered the certification required by paragraph (i) of this subsection, provides written notice to the state treasurer's office that the office is authorized to begin investing and depositing transferred funds in a manner consistent with the adopted investment policies and using fully compliant financial accounting and reporting practices.

Section 8.

Not later than September 1, 2024, the state auditor shall report to the joint appropriations committee on the amounts transferred under sections 6 and 7 of this act.

Section 9
.

It is the intent of the legislature that the five hundred thirty
‑
three thousand five hundred seventy
‑
nine dollar ($533,579.00) appropriation from the Hathaway scholarship expenditure account to the department of education for the payment of administrative expenses in 2022 Wyoming Session Laws, Chapter 51, Section 2, Section 206 not be requested to be paid from, nor be paid from, the Hathaway scholarship expenditure account in the 2025
‑
2026 fiscal biennium or any subsequent fiscal biennium.

Section 10.

(a)

The legislature finds that:

(i)

The state of Wyoming has established inviolate permanent funds in the Wyoming constitution.

These permanent funds are invested, and the earnings from those investments are expended, for specified constitutional and statutory purposes and on behalf of specified beneficiaries;

(ii)

The permanent funds include the permanent Wyoming mineral trust fund, the common school account within the permanent land fund, the excellence in higher education endowment fund and the Hathaway student scholarship endowment fund;

(iii)

The state maintains four (4) permanent fund reserve accounts, one (1) for each of the permanent funds identified in paragraph (ii) of this subsection, that guaranty distributions to the important beneficiaries of the permanent funds in the event investment earnings are insufficient to satisfy annual distribution requirements;

(iv)

Because of the current size of the reserve accounts and the need for each reserve account to maintain assets that can be liquidated to satisfy guaranty obligations, some reserve accounts and portions of their related permanent funds are invested using shorter
‑
term or income
‑
focused strategies.

These shorter
‑
term and income
‑
focused strategies provide important and necessary liquidity, but they have historically provided a meaningfully lower investment return when compared to funds invested in longer
‑
term, but more illiquid, "total return" investment strategies;

(v)

The Wyoming state treasurer's office estimates that, over the last five (5) years, the state of Wyoming has forgone investment earnings in excess of three hundred seventy million dollars ($370,000,000.00) by maintaining small reserve account balances that require the use of shorter
‑
term and income
‑
focused investment strategies;

(vi)

By ensuring that permanent fund reserve accounts maintain balances that can cover at least five (5) years, and preferably seven (7) years, of their annual spending obligations, those accounts and their associated permanent funds can be more fully invested in longer
‑
term, historically higher
‑
yielding "total return" strategies while still providing the necessary liquidity to meet their guaranty obligations;

(vii)

To ensure that each permanent fund reserve account is funded to at least five (5) times its annual spending obligations, a transfer of funds to each reserve account is necessary.

These transfers are provided by section 7 of this act and total six hundred thirty
‑
nine million six hundred thousand dollars ($639,600,000.00).

Although these transfers are sizeable, historical total return strategy investment earnings indicate that these transfers will provide enhanced investment returns to the state of Wyoming that will exceed the transferred amounts within a short period of time.

Further, the transfers and the associated investment earnings will help ensure that the state of Wyoming can satisfy its future obligations in the face of potentially declining mineral revenues;

(viii)

The significant benefits of employing longer
‑
term, total return investment strategies will last only as long as Wyoming's permanent fund reserve accounts are adequately funded and maintain at least five (5) to seven (7) years of their respective annual spending obligations;

(ix)

Although Wyoming's permanent funds are constitutionally protected from legislative appropriation, the state's permanent fund reserve accounts are not.

Consequently, restraint and a long
‑
term commitment by the Wyoming legislature will be necessary to maintain funding for the reserve accounts at the amounts provided by this act and at levels that maximize investment returns and provide maximum benefits to the beneficiaries of Wyoming's permanent funds.

The legislature should not jeopardize the benefits of the permanent fund reserve accounts by encumbering the reserve accounts with new guarantees or other extraneous obligations;

(x)

By committing the funds and making the statutory changes contained in this act, the legislature is adopting a long
‑
term commitment to funding Wyoming's permanent fund reserve accounts at a level that maximizes investment returns and provides maximum benefits to permanent fund beneficiaries and to the state of Wyoming.

Section 11.

(a)

Except as provided in subsection (b) of this section, this act is effective July 1, 2024.

(b)

Sections 3, 4 and 11 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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SF0145