Wyo Senate and House leaders react to State of State

By Mary Angell, Cowboy State Free Press Reporter

CHEYENNE–Gov. Dave Freudenthal’s self-proclaimed fiscally conservative approach toward Wyoming’s 2011-2012 budget is right on target, according to House and Senate leaders of the Wyoming Legislature.

In his “State of the State” address before a joint session of the Legislature this morning, Freudenthal cautioned legislators not to dip into state reserves to fund programs.

“I think that is the prudent approach,” said House Speaker Rep. Colin Simpson, R-Park County. “There is so much uncertainty. We don’t know where our revenues are going; we don’t know where natural gas is going. We have to be very careful because if (the economy) continues to get worse, we will have to use those reserves.”

While Freudenthal said he could almost sign the $3 billion budget as it stands following the Joint Appropriations Committee’s work, he did recommend several adjustments, specifically restoring funds the JAC recommended be removed from school capital construction projects.

“We have told school districts, ‘If you will not come asking for money, we will continue funding for capital construction projects,” Freudenthal said. “We have to deliver.”

Senate President Sen. John Hines, R-Campbell County, said he agreed with the governor but added that school financing won‘t be as big an issue this year as next year, when the Legislature is required by state law to revisit its formula for school capital construction financing.

Simpson expressed concern that unless the money for capital construction is saved back in a special holding account, there may not be any next year. The JAC has reported that increased enrollment and decreases in local revenue have resulted in a dramatic increase in spending from that account, he said.

“Certainly the governor is right. Whatever we can do to construct now is good, but we still need to be sure we can construct next year too,” Simpson said. “I need to have some conversation with the Appropriations committee.”

Freudenthal noted during his address that the results of this session’s decisions will be in effect only six months before the Legislature’s General Session convenes in January, 2011. Some lawmakers seemed comforted by the thought, particularly in the area of school capital construction financing.

According to Senate minority floor leader Sen. Kathryn Sessions, D-Laramie County, schools could not possibly spend that money in just six months anyway.

“I agree with taking that money and holding it for six months at least. We have that money in reserves if everything goes to pieces,” she said. “If everything looks good, we can release the money for more school buildings.”

“The governor made a great point that we will be back here six months into that budget,” Simpson said. “We will have plenty of time to address any serious problems.”