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'We have a spending problem': Wyoming House passes bills to restrict state spending

'We have a spending problem': Wyoming House passes bills to restrict state spending

Yahoo05-02-2025

CHEYENNE — The Wyoming House of Representatives passed two bills Tuesday that would reduce the state's spending, cutting tens of millions of dollars in available education funding per fiscal year.
'Folks, we don't have a revenue problem. We have a spending problem,' said Rep. John Bear, R-Gillette, during the third and final reading of the bills. 'I really have a lot of faith in this body that we are going to keep our spending under control, and we'll be able to withstand this $28 million (reduction in education funding) per year.'
Rep. John Bear, R-Gillette (2025)
Rep. John Bear, R-Gillette
Bear, the Wyoming Freedom Caucus chairman emeritus and current House Appropriations Committee chairman, said it's time for the state to start 'living within its means' by reducing its spending and stashing more money into savings. However, Rep. Karlee Provenza, D-Laramie, countered Bear's optimistic claim about state revenue.
'As of Friday, our total revenues that we've cut in the bills that we've brought so far … is $372,489,500,' Provenza said, which includes proposed property tax cuts. 'We're going to have a revenue problem, a very serious revenue problem.'
Rep. Karlee Provenza, D-Laramie
Rep. Karlee Provenza, D-Laramie
House Bill 270 reduces the state's spending out of the Wyoming Permanent Mineral Trust Fund from 5% to 4.5% of a five-year rolling average market value. A similar spending policy is proposed in HB 271, but out of the Common School Account.
Rep. Ken Clouston, R-Gillette, successfully added an amendment to HB 271, so the spending policy would be reduced to 4.75% for the first year and then 4.5% for the following years.
Rep. Ken Clouston, R-Gillette (2025)
Rep. Ken Clouston, R-Gillette
'This will give us a way to evaluate what this change does,' Clouston said. 'Instead of taking $24 million in the estimate, it would be $12 million from the (School) Foundation (for the 2026 fiscal year).'
Bear expressed his support for Clouston's amendment, saying it's a 'reasonable' change to HB 271.
'I've been resistant to most of these amendments to change the trajectory of our spending,' Bear said. 'I am going to be in support of this one. I'm not sure the amendment will last through the process, but I do believe that there's nothing wrong with taking a moment to pause, and that's what this amendment does.'
The School Foundation Program funds inflationary costs for public school teacher and non-teacher salaries, classroom supplies and energy costs. The state's Permanent Mineral Trust Fund is a major source of revenue for education, as well. The combined impact of both bills on this account reduces the amount available for spending by around $30 million per fiscal year.
Rep. Steve Harshman, R-Casper (2025)
Rep. Steve Harshman, R-Casper
Rep. Steve Harshman, R-Casper, cautioned lawmakers multiple times that this legislation would 'pull the rug out' from K-12 school districts. The loss in revenue from these bills, he argued, is equal to funding one entire small school district, such as Laramie County School District 2.
'I think the good chair of Committee No. 2 said it's $28 million a year. How many of you know how big a revenue reduction this is? It's the same as spending,' Harshman said on HB 270. 'Revenue reductions are spending increases. It's not $28 million a year, it's over $50 million a year and growing.'
The Casper teacher/coach brought amendments, all of which failed, that attempted to slow down the rate of reduced spending that Bear's legislation proposed. On Tuesday, Harshman made an attempt to bring a 'three-year step down' to 4.5% spending out of the permanent mineral trust fund, instead of cutting it to 4.5% right off the bat.
'This would just slow this down over three years. And folks, this bill is effective immediately, so it's going to affect fiscal year '26, which is what we are budgeting on right now,' Harshman said. 'So this cut is going to happen right now.'
Both bills passed through the House and will now cross over to the Senate for consideration.

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