Committee Meeting Information

May 1 & 2, 2006

Park County Building

Cody, Wyoming

 

Committee Members Present

Senator Bruce Burns, Co-Chairman

Representative Pat Childers, Co-Chairman

Senator Stan Cooper

Senator Mike Massie

Senator Tony Ross

Senator Michael Von Flatern

Representative Kermit Brown

Representative Kathy Davison

Representative Keith Gingery

Representative Wayne Reese

Representative Jim Slater

Representative Bill Thompson

Representative Dan Zwonitzer

 

Committee Members Absent

Representative Jerry Iekel

 

Legislative Service Office Staff

Lynda Cook, Staff Attorney

 

Others Present at Meeting

Representative Colin Simpson

Please refer to Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.


Call To Order (May 1, 2006)

Co-Chairman Pat Childers called the meeting to order at 8:35 am.  The following sections summarize the Committee proceedings by topic.  Please refer to Appendix 2 to review the Committee Meeting Agenda.

 

Approval of Minutes

Minutes from the October, 2005 Committee meeting were approved.

 

Multi-state Lottery and Gaming

LSO Staff addressed the committee regarding the two bills from previous years.  One creates a state lottery corporation overseen by the pari-mutuel commission which will enter and run a multi-state lottery.  (Appendix 3).  The other creates a separate gaming commission which oversees current gaming in Wyoming.  (Appendix 4).

 

Senator Burns asked Frank Lamb, Pari-Mutuel Commission director, about the bill which gives the commission authority to oversee the lottery.  Mr. Lamb stated that the pari-mutuel commission endorsed the bill creating a lottery overseen by them two years.  A member of the audience asked if the materials provided to the committee would be made available to the public.  Chairman Childers stated that they would make copies available.

 

Senator Cooper stated that he does not see the benefit of even discussing the bills since they never went anywhere before.  Childers said there are people on both side of the issues who want to air their testimony.  Management Council approved the topic for interim discussion.  He said he believes the state needs a system to fairly administer the current gambling allowed in state.  With respect to the multi-state lottery, there appears to be an interest by the people of the state to join.

 

Chuck Strutt, Director of the Multi-State Lottery Association (MUSL), Ed Van Petten, Kansas State Lottery Director and Bret Toyne, CFO and Deputy of the Multi-State Lottery Association testified.  MUSL is a non-profit corporation made up of member states.   (Appendix 5).   Directors of the member states are involved in the administration of the corporation.  The MUSL runs four games and each state decides which of the games the state wants to permit within their state.  There are currently 31 states offering Powerball. through MUSL.  The corporation owns the brand.  Mr. Strutt described how the games are managed.  Powerball is a two drum game.  The overall odds of winning a prize is 1 in 36.  Power play is an additional chance to win a multiplier of whatever is won by player.  He described how the game has various elements designed to allow players to win lower amounts than the large jackpot.  Fifty percent of every dollar bet is paid out and the other 50% is kept by the state.  It costs $20,000 per year for a state to join the corporation. 

 

Bret Toyne described how the funds are raised to run the lottery.  Funds are sent to MUSL and invested until the payout is made to the players and the states.  They also make revenues from bond swap profits and licensing of brand names.  Those revenues run the MUSL corporation for the states.  Any excess over the operating budget is split among the states.

 

Slightly more than half the states only do Powerball.   Chairman Childers asked about problem gambling.  Mr. Strutt stated that approximately 1% of the population are problem gamblers.   MUSL encourages states to set aside a percentage of sales to be used to find and treat problem gambling.  Typically that amount is 1% of sales.  Senator Van Flatern asked how the revenues are distributed.  Mr. Toyne stated that the returns from the extra revenues are probably not enough to cover the 20K per year so a small state like Wyoming would likely use some of its other earnings to pay that fee.  Excess profits are allocated to member states based on sales. 

 

The board only recently decided to charge the $20,000 fee because larger states were essentially supporting smaller states.  Mr. Van Petten stated that Kansas is one of those smaller states that pays the additional fee.  They supported the annual fee because the benefits and earnings generated in the state by the inclusion in the MUSL far outweighs the extra cost. 

 

Rep. Reese asked for estimates of what sales would be in a state like Wyoming.  North Dakota has a comparable population and they sell $12 million per year.  True profit, after the states expenses are approximately 30-35% of that. 

 

Rep. Reese asked how other states set up there administration.  Some create a non profit corporation like in 2005 HB 163, others run it through a state agency like Kansas.  Nebraska is also a state agency.  The latest states have been creating governmentally held corporations.  Kansas has 76 employees.  With increased sales they have had to expand the staff.  Mr. Van Petten said his background is in law enforcement.  When Kansas looked at joining the lottery he voted against it.  But he has changed his mind.  He testified that it gives people a chance to dream.  He addressed the horror stories of people spending their last dollar on lottery.  He says there are people with problems with all sorts of addicting behavior, but he doesn’t see the horror stories with gambling much.  He strongly agrees with putting money aside for treating problems.

 

Mr. Van Petten described how states can tailor the games to promote their state.  Prizes can be Wyoming products for games specific to the state.  He suggested that North Dakota made a mistake by only authorizing Powerball.  States like Kansas make a great deal of money on the scratch tickets and state specific games.   (Appendix 6).

 

The committee discussed the need for counseling services and call in centers for referral to other resources.  Chairman Burns asked about the resources that are available for people with problems already, including internet gambling.  Mr. Strutt testified that statistics show that lottery is the least addictive form of gaming because there are not the immediate results like with other forms of gaming.  Mr. Ven Petten noted that this income allows the state to help people with addictive personality that are not currently getting any help.

 

Senator Cooper asked about investigation costs.  He wanted tot know how much of a problem is it for the state to investigate things like people claiming to win but who didn’t.  Mr. Van Petten stated that the system is very tight so the tickets clearly show when the tickets are sold, and where.  The system is computerized and he doesn’t think fraud is really a problem.

 

Rep. Zwonitzer asked how the retailers are compensated.  They receive a portion of sales and a portion of the winnings.

 

Troy Broussard, Boys and Girls Clubs of Wyoming, testified regarding where the profits should go.  (Appendix 7).   He suggested that the profits be used for methamphetamine eradication.  It was reported in the Casper Star that 63% of the people in the state favor a lottery.  Mr. Broussard thinks this could be higher if people knew the money was going to eradicate the methamphetamine problem.  The money should be used for law enforcement, rehabilitation, prevention and drug courts.  Wyoming could be a leader by not pushing the lottery for the sake of having a lottery but rather for the sake of addressing a serous problem.  Rep. Gingery suggested that if these programs are funded through the lottery then they will lose funding from other sources.  He is not sure they are helping the cause by shifting where the money comes from.  Mr. Broussard doesn’t see why the other sources would have to dry up.

 

All of the public testimony was in opposition to the lottery.

 

David Robertson testified in opposition to the lottery. He is the past chairman of the National Organization Against Legalized Gambling.  He testified that lottery tickets are inferior goods.  The lottery shifts the burden of taxation from higher income households to lower income ticket buyers.  In Massachusettes the highest problem with children having problems is playing the lottery.  He discussed increased law enforcement problems.  He testified that the Texas lottery did study in 2004 showing the regressive nature of the lottery in that lower income tax groups spend a larger percentage of their income on lottery.  The national association called for a moratorium on gambling.  A commissioned study showed that 5% of the purchasers bought 50% of the tickets.  Mr. Roberson argued that when we have a budget surplus in the state there is no reason to bring in a predatory monopoly run by the state just to bring in $6 million dollars when it would damage Wyoming families.

 

Mr. Robertson argued that if you just use the 1% problem gambler figure mentioned earlier then 3000 people in Wyoming will develop problem gambling.  Gambling causes the highest rate of suicide of any addiction.  Therefore 300 people will commit suicide because of this.  No state is better off financially after it brought in lottery.  The state wouldn’t go into the business of selling cigarettes and alcohol just to raise money.  For six million dollars it is not worth damaging families.

 

Sen. Massie pointed out that this is not a tax.  People do not have a choice to pay a tax.  This is voluntary on the part of the individual.  With respect to the 1% who have problems, those people can already gamble on the internet.  He wanted to know if there are going to be additional people who develop a problem if the state has a lottery.  Mr. Robertson suggested that in South Dakota gamblers anonymous almost went out of business when the state stopped gambling.  Chairman Burns asked whether Wyoming already has the social problems.  Mr. Robertson stated that introducing lottery and promoting it will increase the problems.

 

Curt Graham, Cody resident, testified in opposition.  He asked where the 6 million dollars is going to come from.  Not from the high income people.  People who are buying these tickets are dreaming about paying their bills.  He argued that putting money aside for treatment is not going to work.  He compared it to the state taking over drug production and using some of the proceeds to treat drug addiction.  He asked which 1% of the population they are willing to subject to the addiction.  In response to Senator Massie's suggestion that this is not a tax because it is a choice, he argued that addiction is not a choice.  There are real social consequences.

 

Senator Massie asked for the foundation for the statistic that demonstrates that there are going to be new addictions.  Rep. Brown asked why they should deny the 99% who don’t have problem the opportunity to play a game.  Chairman Burns brought up the evidence that when casinos go in the bingo parlors dry up.  This leads him to believe that adding lottery would just transfer the gaming from one area to another.

 

Bill Neilson, provided written testimony in opposition from the Church of Jesus Christ of Latter Day Saints.  (Appendix 8).  He did not poll the members of their churches, but the letter is from the ecclesiastical leaders.  He described the impacts of gambling.  He compared the addiction to gambling to the addiction to methamphetamine.  Chairman Childers asked for statistics supporting these claims.

 

Diana Gwen testified in opposition.  She quoted George Washington who stated that gambling should be avoided.

 

James Fitzgerald, law enforcement in southern California before moving to Wyoming, testified.  He noted that the attempt by the MUSL to provide lower prizes to increase participation is an attempt to increase addiction.  He suggested that the idea that the money was going to schools in California was a shell game.

 

Steve Murphy, Cody resident, testified in opposition.  He does not want gambling around his children.  He argued that the lottery is based on a lie in that it is telling people that if they spend a dollar they can win big.  The way to get ahead is to work and get a good education.  He asked how the state would find the people who have a gambling problem.  He also compared joining the lottery to the state selling crack.

 

David Peterson, dentist from Basin testified in opposition.  He brought up the case of a man who staged his own death after losing money on a Superbowl bet.  He described the search and rescue attempts to find him.

 

John Shoffstall, testified that the majority of people in a large number of states have voted in favor of having lottery.  Not everyone is addicted to gaming if they play the lottery.

 

The committee discussed the bill creating a Gaming Commission.  Chairman Childers stated that it was  brought back because the committee still sees inequitable enforcement of the current gambling laws.

 

Viginia Shoffstall testified regarding the gaming commission bill.  She used to be a member of the Pari-Mutuel Commission.  In that position she saw a need for the state to deal with the issue of problem gambling.  The council she represents now is neutral on the issue of gaming, but they want to see the state do something to deal with problem gambling.  The council is made up of three members.  One is a nationally certified counselor, the other is an educator.  She argued that citizens who travel to other states to gamble still bring their problems back home. 

 

The council sent a survey to law enforcement and metal health agencies.  Responses concern the availability of treatment for problem gambling.  (Appendix 9)  She provided written testimony on problem gambling.  (Appendix 10).  Her group would like to offer a workshop for legislators before next session.

 

Ms. Shoffstall asked for two amendments to the gaming commission legislation.  (Appendix 11).  The amendments would address the problem of gambling addiction without changing the current types of gambling allowed.  This would address the problems that are currently here.

 

Senator Massie asked if adding lottery would increase the number of pathological gamblers.  Ms. Shoffstall did not have concrete data but she sees it like alcohol.  If there is no alcohol in front of the alcoholic, they can’t  drink.  Lottery isn’t going to cause the addiction but it could bring it out in people who aren’t subjected to gambling right now.

 

The proposed amendment  requires licensees to submit a plan to address compulsive gambling and to train employees.  The proposed amendment also prohibits extension of credit on a gaming premises.

 

The second proposed amendment creates a state hotline and an account to be used by local governments to apply for a grant to use to address problems. 

 

The chairmen explained what the bill does and does not do.  Currently there is no state mechanism for tracking and controlling the gambling that is allowed.  The bill does not expand the gambling available in the state.

 

The committee took public comment on the gaming commission bill.

 

John Shoffstall testified in support of the bill.  He stated that the bill is needed so there is statewide jurisdiction over gambling.  It shouldn’t be left to each separate county. There should be a statewide set of standards.

 

David Robertson testified again.  He doesn’t like to see the expansion of government.  He thinks DCI should handle the licensing.  He sees commissions as entities that promote the topic that they regulate.  There is not enough gambling in Wyoming to justify a new commission.

 

Senator Massie supported moving forward with the concept of multi-state lottery.  He thinks it should go under the gaming commission or the Pari-Mutuel Commission.  Senator Von Flatern seconded.  Rep. Davison suggested that treatment will need to be included. 

 

Rep. Reese stated that a bill has come up several times.  People see a difference between casino and lottery.  There is no instant gratification.  He stated that the majority of people in the state support it.  It is totally voluntary.  That is enough reason to pass it.

 

Senator Cooper opposed to moving ahead.  He doesn’t see any benefits, only problems.  He doesn’t see it creating any new jobs.  It’s just a way to raise revenues and the state doesn’t need it. 

 

The committee voted to have LSO draft a multi-state lottery bill for their consideration.  Those opposed were Representatives Gingery, Slater and Davison and Senator Cooper.  Chairman Burns directed LSO to leave the direction of the revenue streams blank for now. 

 

Slater moved to have the bill be limited to Powerball but it died for lack of a second.

 

Senator Massie moved that the gaming commission bill be brought back.  He also wants the attorney general to review the bill and provide his comments on the bill to the committee at the next meeting.  There was discussion as to whether it expands any gambling.  There isn’t expansion but there is clarification for things like poker games in public places.  Senator Cooper asked if the gaming commission would have authority to define what is gambling or and what isn’t.  Rep. Reese stated that it does not have that authority, the statutes do that.

 

Rep. Gingery asked why the local authorities couldn’t handle it all.  Chairman Childers stated that it gives the state gaming commission statewide authority so there isn’t unequal interpretation throughout the state.  Rep. Brown wanted to know why we can’t just state it clearly in statute and not have a commission.  Sen. Massie pointed out that is what they thought they had before but counties were not all doing the same thing.  This also gives the statewide authority to enforce and oversee gaming.   We cannot rely on local governments.

 

Rep. Gingery thinks that the law should be clarified, not create a commission to interpret the laws.  He would rather see a bill that just clarifies the law and leaves everything else to the local authorities.  Chairman Childers reminded the committee that the courts have considered the current laws vague but the Attorney General has stated that they are iron clad.  There is a difference of opinion.

 

Rep. Brown moved that the bill be split into two bills – one that just clarifies the law and one that creates a gaming commission.   Senator Massie noted that the local governments were unanimous in asking for a state commission.  He doesn’t see how little communities could afford to enforce and administer the licensing.  He doesn’t understand how certain committee members think the legislature would not have any oversight over this commission when it is just like any other commission.  Rep. Brown agreed to bring a bill draft to the next meeting that would simply clarify what is and is not gambling in Wyoming and would not include licensing or a gaming commission

 

The committee bill will not include the proposed amendments to deal with problem gambling.  Chairman Childers asked to have those drafted as amendments for consideration when they work the bill.

 

Rep. Gingery stated that the bill died last year because it creates a new commission.  Chairman Childers thought it was because there wasn’t enough time.

 

The committee voted to have LSO resurrect the bill for further consideration.  Senator Cooper and Representatives Gingery, Slater, Zwonitzer and Davison opposed.

 

The committee broke for lunch and returned at 1:15pm.

 

Game and Fish Department Issues

 

Increased Penalties for Repeat Offenders.

 

Scott Talbot, Wildlife Division Assistant Division Chief, testified regarding increased penalties for repeat offenders.   (Appendix 12).  This proposal only addresses persons who repeatedly violate wildlife laws.  Currently there are only fines and restitution which are not strong enough to deter people with means to do this.  Incarceration and loss of hunting privileges is a better way to deter these people.  Passage of stronger penalties has made a difference in the past.  Since the time the penalties were last increased there has been a decrease in out of state violators.  The statutes currently carry a fine of up to $2000 and one year in jail. However, the only felony provision  in statutes right now is vandalizing a fish hatchery.  At the turn of the century there used to be more.  The suggested language is based on discussions with county attorneys who prosecute these cases.  Mr. Talbot described two instances of flagrant wildlife violators who received the maximum penalties.  The current penalties did not stop them.  The violators did not pay the fines.  . 

 

The proposed bill applies to serious repeat offenders.  In 2004 a resident used an automatic rifle to kill eleven elk.  The proposed legislation does not deal with cases like that unless it was a repeat offense.  In the last 10 years there have been 475 cases that have not been prosecuted for lack of evidence.   Some of those cases may be repeat offenders that, if they were caught, this would apply to.  The Lacey Act, a federal law governing interstate traffic of wildlife violations, does have felony provisions.  This legislation is similar to laws in neighboring states.

 

Why seek felony status?  Mr. Talbot testified that extradition is more efficient in felony cases.  Supervised probation may help prevent future cases.  Stronger penalties, including the recent forfeiture provision, are strong deterrents. 

 

Senator Ross noted that the draft language purports to deal with habitual violators but it really deals with second or more convictions.  Sen. Ross pointed out that most criminal convictions require at least three violations to be considered habitual.  Rep. Gingery stated that he thought that there were no felony Game and Fish statutes because there was concern with having game wardens deal with felony investigations.  He wanted to know if game wardens need to involve sheriffs in these cases.  Mr. Talbot had had no concerns raised by county attorneys regarding the abilities of game wardens.  They already work on felony Lacey Act investigations. 

 

Rep. Brown clarified that both violations require an intent.  Chairman Childers asked Mr. Talbot to provide LSO with Idaho’s statutes which require three violations within ten years. The language provided by game and fish does not have a time limit and applies to a second conviction.

 

There was discussion about the revocation of license language.  Individuals have taken their chances hunting without a license rather than trying to procure another license.  This proposal adds additional penalties for hunting while under suspension.

 

Rep. Gingery asked why there are eleven degrees of misdemeanor and why they haven’t had felonies before.  Terry Cleveland explained that in 1973 when the legislature re-codified the game and fish statutes is when it occurred but he does not know what the genesis was.  Sen. Ross asked what was the rationale behind the number of years they proposed for loss of hunting privileges.  They didn’t have one.

 

Lyn Bashford, Warden's Association, testified in support of the bills.  The Idaho statute and Montana statute are just based on the value legislators put on wildlife.  He noted that the wanton destruction provision was originally a felony but it has changed over time.    Chairman Burns asked if passage of this legislation would require any additional training on the part of the game wardens.  He didn’t think so.  Chairman Burns asked how many cases this would affect.  He stated that there were none in this last year.  But there have been 111 cases of violations in the last ten years and they don’t know if any of those would apply.

 

Chairman Burns also commented that the game and fish misdemeanors were overlooked when they raised the mandatory minimum penalty to $1000.  With respect to the additional training, Sen. Ross pointed out that most violations are done by issuing citations.  Taking violators into custody is different.  Mr. Bashford said they do take people into custody right now, just not very often.  Rep. Gingery asked if they are going to come back with more crimes they want to make felonies.  He also asked if the wardens association had discussion of going to one level of misdemeanor.  Mr. Bashford didn't think so on either count.  Felonies should be reserved for the most flagrant crimes.  Rep. Brown asked if raising this to a felony will be a real deterrent.  Mr. Bashford said yes.

 

Ben Lamb, Wyoming Wildlife Federation, stated that his association has not taken a position on this because this is the first they have heard about it.  However, his recommendation is to support this. Increased people in the oil and gas industry means increased people out in wildlife habitat with increased chances of violations. 

 

Jason Marsden, Wyoming Conservation Voters, stated that he would recommend that his group support this too.

 

Dave Bragonich testified that it used to be a felony when there was concern of market hunting.  He also pointed out that game wardens have all the same training as any other peace officer in the state.

 

Chairman Burns moved that two bills be drafted.   Sen. Ross argued that the felony bill should be like Idaho with three violations in ten years.  Rep. Reese agreed that time period is okay but he was curious whether it should be three violations or two.  Rep. Gingery suggested not using the term habitual.  He also said the bill should follow the language in the DUI statutes.  Sen. Ross expressed concern about including the wanton destruction in the violations which receive increased penalties because it does not have an intent element.  LSO staff will work with Sen. Ross and Representatives Gingery and Brown on the felony language.

 

Introduction to Game and Fish budget needs.

 

Terry Cleveland, Game and Fish Director, introduced game and fish commission members and staff who were in the audience.  He also recognized former commissioner Gary Lundvall. 

 

Cleveland read his testimony which is reproduced herein: 

 

“Today there are a great variety of challenges facing our wildlife . . . energy development, lingering drought, urban development, disease, and much more. You’ll be hearing about many of these issues from other Game and Fish personnel during this meeting. These are all important and challenging issues. But if we assume the public desires the Department to address the needs of all wildlife in the state,  the single most important issue facing the future management of all wildlife today is a lack of adequate funding for management and conservation. I’m confident that we can successfully address all of the issues we’re facing today as long as we have adequate funding to do so.

 

To understand the Game and Fish Commission’s current funding situation, and why it’s no longer sufficient to address the needs of all of Wyoming’s wildlife, it’s important to understand the culture in which it was founded, and how it has evolved over the years. To begin, let’s look back more than a century.

 

1890 was a very important year for Wyoming and its wildlife. That was the year that Wyoming was granted statehood, after more than 20 years as a territory of the United States.

 

The year preceding that, 1889, was an important year for Wyoming’s wildlife as well, in a symbolic sense. In 1889, the last wild buffalo, outside of Yellowstone National Park, was killed in the Wyoming Territory. It’s difficult to think of an event more representative of the dismal state of our wildlife during that era.

 

White settlement, the arrival of the railroad, unregulated hunting, and other factors all were taking their toll on our fish and wildlife resources. Most Westerners at that time must have taken Wyoming’s vast natural resources for granted, and I’m sure that to many it seemed Wyoming’s vast wilderness and wide-open spaces could never be depleted.

 

But on the day that Benjamin Harrison signed the statehood act, there were only about 800 wild bison left on Earth, as well as around 5,000 antelope. Elk, mule deer, beaver, sage grouse, waterfowl, and other wild creatures were all on a downhill slide.

 

Wyoming’s territorial government had made a few attempts at establishing game regulations to slow these declines. In 1875, Wyoming set a big game season running from August 15 to January 15. Animals were to be killed for food only, and then “only when necessary for human subsistence.” As with other game regulations established before statehood, there were no provisions for enforcement, game laws and regulations were largely ignored, and many of our wildlife species continued their downward spiral.

 

Statehood was a significant event for wildlife. Almost immediately, Wyoming embarked on a series of important steps toward effective conservation and management of the state’s wildlife. Far-sighted lawmakers at that time began to realize that Wyoming’s wildlife and their habitats were fragile resources that needed to be managed wisely. They also began to realize the value of those resources to Wyoming, both aesthetically and economically.

 

One of the most important steps toward wise use of our wildlife came in 1899, when the legislature created the office of state game warden. The warden’s responsibilities included enforcing game laws and implementing wildlife management policies. This move marked the birth of the Wyoming Game and Fish Department.

 

As it is today, funding for management and conservation was a serious concern during those early years. But a funding model was beginning to develop in Wyoming and across the continent. The model that was emerging was based on a “user-pays” system that relied on revenue collected from hunters and anglers to fund conservation and management activities.

 

The legendary D.C. Nowlin, one of Wyoming’s first State Game Wardens, reported to the legislature in 1902 that nonresident hunters had spent more than $175,000 on licenses, guide fees, and equipment to hunt and fish in Wyoming. He wrote: “. . . conservation is not only morally right, but a good financial investment for ourselves and our prosperity.”  I could make that exact statement to you today.

 

More than 100 years later, the “user-pays” system is still the basic model used to fund the Wyoming Game and Fish Department.

 

In the early years of the 20th century, Wyoming’s lawmakers continued to develop wildlife management policies and procedures that would become a model for the rest of the country. And, as a direct result, wildlife populations began making impressive comebacks.

 

One of the most significant changes came in 1921, when the Wyoming Legislature created a Game and Fish Commission. This early version of the commission consisted of the governor, the secretary of state, and the state auditor. In 1925 this structure was revised to provide for a six-person, bipartisan citizen-based commission to be appointed by the governor.

 

The creation of this citizen board to oversee fish and wildlife management was another significant step in providing balanced oversight of the department’s operations. But, at that time, the department’s operating budget was appropriated by the legislature, which did not always provide a steady or adequate stream of revenue.

 

A.A. Sanders, one of the early commissioners, wrote the following to Governor Nellie Tayloe Ross: “ . . . in order that this department may be supplied with sufficient funds . . . without asking for an additional appropriation that will tend to increase taxation on the people of our state, we are going to ask Your Excellency to assist us in procuring a legislative act, whereby the total receipts collected from the sale of licenses, permits and confiscations, together with all other sources of revenue, be placed in a separate fund, to be known as the State Game and Fish Fund, the same to be placed at the disposal of this department.”  This fund was eventually developed, but controlled by the legislature.

 

In 1929, the legislature took another big step toward separating wildlife management from the political process. The commission was given the authority to open and close hunting and fishing seasons, separating this important authority from the legislative process. But the commission remained financially dependent on the legislature, and history reports at times politics interfered with the allocation of resources to the management of Wyoming’s wildlife.

 

Through landmark legislation 1937, the Wyoming Game and Fish Commission gained financial independence and wide executive authority. The commission was granted almost full executive powers over wildlife management. In addition, the Game and Fish Fund was transferred to the control of the commission.

 

By taking the bold step of separating these responsibilities and funds from the political process, the Wyoming legislature paved the way for a period of enormous progress. The next few decades saw dramatic increases in wildlife numbers, especially big game. This coincided with increases in harvest rates for many game animals. This model served our state well through most of the 20th Century and can be credited with providing much of the wealth of fish and wildlife we enjoy today.

 

Also in 1937, another important milestone in wildlife management occurred at the federal level. Congress passed the Federal Aid in Wildlife Restoration Act, more commonly known as the Pittman-Robertson Act. This act provided additional revenue for state wildlife management from a special tax on sporting arms and ammunition. A similar act, known as Dingell-Johnson, was passed in 1950 to provide federal funding for fisheries management and conservation from taxes on fishing equipment. Of course, these acts were also based on the model of hunters and anglers paying for management and conservation.

 

Today, these revenue streams still make up the bulk of funding for the Wyoming Game and Fish Department. In fact, about 90 percent of our funding comes directly from licenses sales, fees, and taxes paid by sportsmen.

 

Throughout the last century sportsmen’s dollars were instrumental in restoring many species that were in serious trouble. But, at the beginning of the 21st Century, it’s clear that this model of funding wildlife management is no longer adequate to address many of the challenges that simply did not exist 100 years ago.

 

It’s easy to admire the foresight of the lawmakers who wrote the 1937 statute that established an independent commission. Specifically, Title 23 of the Wyoming Statutes  states as its purpose: “. . . to provide an adequate and flexible system for control, propagation, management, and protection of all Wyoming wildlife.”

 

It’s apparent that most, if not all, interest in wildlife management during much of the 20th Century was focused on game species. So, for the framers of this legislation to specifically direct responsibility of the commission to “all” wildlife in Wyoming is truly remarkable.

 

At the same time, this legislative direction to the commission seems to stand in conflict with the funding source allocated to pay for management of all Wyoming wildlife. After all, there are more than 800 species of wildlife in Wyoming. Only about 100 or so do we actually pursue with guns, bows, traps, and fishing rods.

 

Today this conflict is even more apparent. Though hunters and anglers continue to shoulder nearly all the financial burden of paying for wildlife conservation and management, a variety of other stakeholders have interests in how Wyoming’s wildlife species are managed. And many other individuals, businesses, and organizations . . . in addition to hunters and anglers . . . benefit from the recreational opportunities and financial benefits that Wyoming’s wildlife provides.

 

For example, according to the most recent data from a US Fish and Wildlife survey, in 2001 a total of 498,000 people participated in wildlife viewing activities in Wyoming. Compare that to 133,000 people who hunted, and 293,000 people who fished during that year. People who enjoy viewing wildlife are reaping the benefits of conservation and management programs, but currently there’s neither a requirement nor a funding mechanism for non-hunters and non-anglers to help pay for the management and conservation of wildlife in Wyoming.

 

Also consider that in 2001 hunters spent $123 million on equipment, travel, and other expenses related to hunting in Wyoming. Compare that to an estimated $264 million spent in Wyoming on wildlife viewing activities during that same year and it’s easy to see the economic benefits of wildlife recreation beyond just consumptive uses of wildlife.

 

Today the Wyoming Game and Fish Department focuses its efforts on a wide variety of wildlife species, including hundreds of non-game species. During this meeting you’ll hear a presentation about more than 200 Wyoming species that need additional attention from the department. Some of these are currently on the federal threatened and endangered species list, some we need more data on, and some have the potential to be added to the threatened and endangered list if we don’t take action soon. Our current funding model doesn’t allow us to even come close to addressing these needs.

 

We’re facing a host of other challenges that could never have been anticipated 100 years ago. These include significant impacts from energy development on some of our most important wildlife habitats, continuing urban sprawl across the state, wildlife diseases (most notably CWD and brucellosis), lingering drought, and more.

 

It doesn’t seem fair, or appropriate, for hunters and anglers to continue to pay for all management and conservation activities affecting such a wide range of species and diverse range of issues. Additionally, current revenue from license sales and fees is not nearly adequate to address these challenges.

 

We believe, and I hope you will concur; it is time to find an additional source of funding for wildlife management in Wyoming.

 

The news isn’t all doom and gloom. There is a growing realization about the importance of wildlife and the need to do more. Evidence of this is recent appropriations from the legislature to fund some important capital construction projects, local sage grouse working groups, and the department’s veterinary services program. These are greatly appreciated; but to responsibly manage and conserve our wildlife resources in the new millennium, the department needs a regular, reliable funding source that does not come exclusively from hunters and anglers. Tomorrow, Deputy Director Bill Wichers will give you some specifics about programs we would like to see funded from an additional revenue source. But we would also like to hear your ideas on how to address many of the wildlife challenges we are facing in the 21st Century.

 

More than a century ago, our lawmakers recognized that the state’s wildlife resources were in crisis. They embarked on a series of steps that restored many of those species, some from the brink of extinction. I think we can all look back at the time and the culture of that period and marvel at the foresight of those lawmakers and their bold actions.

 

Today, we are at another critical juncture for wildlife in Wyoming; and we have the opportunity to make some changes that will be just as important to the future of our wildlife resources. A critical public policy decision must be made regarding what the people of the State want wildlife management to be in the future.  If that desire is simply to manage species that they hunt and fish and not address such issues as habitat, declining species, and the potential listing of species, the Department can probably sustain itself on licenses fee increases that occur over time; and there is little value in study of the funding issues.  However, if the vision is the management of all Wyoming wildlife, addressing the issues that I have talked to today, additional funding is necessary. 

 

Wyoming is enjoying tremendous economic prosperity from energy development. Obviously, there are a number of ways we have and can use those funds to improve the lifestyle and prosperity of our citizens. I hope, however, that you agree with me that, given all the current threats to our wildlife, some of those funds might be used for the benefit of wildlife.

 

Wyoming is recognized around the world for its wide-open spaces, abundant and diverse wildlife, and premiere wildlife-related recreational opportunities; but these will not last forever without attention. 

 

The challenges facing wildlife are great.  So are the opportunities.”

 

Chairman Burns asked whether the department has specific recommendations.  Mr. Cleveland said if the legislature sees the need, he sees money coming from energy sources and maybe the lottery if that passed.  He would like to see a stream of revenue to the commission with the commission deciding how the money is spent.  He would like to see a block grant type program similar to the funding to the university.  This would also entail reporting back to the legislature on how the money was spent.

 

Chairman Childers pointed out that wildlife watchers should be a source since they need to see that they are invested in wildlife.  Senator Massie stated that this is the most pressing problem in front of this committee.  He thinks that using Powerball money would make a lot of sense.  He hears that using general fund monies would corrupt the game and fish and subject them to political pressure.  Mr. Cleveland said that if they have to come under legislative oversight to some degree in order to meet the needs, then that is just something that is necessary.    Either that or they need to ignore the needs of non-hunted animals.  They can never raise license fees to the point of solving all the wildlife needs of the state.

 

Bill Wichers, Deputy Director, stated that he sees a gradual shift in attitudes toward accepting general fund money.  When they received some recently they were given latitude within the parameters set by the legislature.  That is the block grant model that they think worked well.  Senator Massie said he likes the idea of a block grant but stated that to get there politically the legislature is going to need to hear from hunters that they support this method.  He wants to know if sportsman are ready to say that.  Mr. Cleveland stated that they do hear that sportsmen don’t want general fund money, but they also say they don’t want their money spent on grizzly bears and wolves.  The sportsmen’s associations have come together and they are going to publicly come out in support of this.

 

Rep. Gingery brought up some other suggestions.  One is to create a whole new department that deals with natural resources outside hunting and fishing.  Another is to have two divisions within the current department.  One division would be overseen by the legislature and the other would be overseen by the commission.  Mr. Cleveland was concerned that that was not an efficient use of funds and personnel.  He brought up the example of fisheries personnel who deal with both the aquatic habitat and the fish.  He was also concerned that there may be conflicts between the two personnel on the ground.

 

Chairman Childers pointed out that management council wants the committee to look closely at where the money comes from and where it is going.

 

Rep. Brown asked whether the department would make all the decisions regarding whether to enter into agreements with the US FWS if there was a block grant program.  Mr. Cleveland pointed out that even now, without the program, the decisions are already made in collaboration with the governor’s office and the legislature.  In past decades swift fox, black tail prairie dogs and sage grouse have been precluded from listing because the department has worked collaboratively.  They spend a million dollars just trying to address the needs of sage grouse.  And helping one species helps many species.  Rep. Brown noted that there will come a time when the state is not going to be flush.  If the money from the general fund decreases, how would decisions be made on where to spend the money.   Mr. Cleveland said it would be done collaboratively and based on the biggest needs.

 

Kathy Frank, Assistant Fiscal Division Chief, presented background financial information and the budget process.  Her presentation compared revenues and expenditures in 2006 with 1992.  (Appendix 13).  Revenues come largely from license sales, Pittman-Robinson/Dingle-Johnson money (federal excise tax dollars), interest income and conservation stamp fees.  Interest is required to go back into the department.  Interest was high in 1992.  Using federal inflation factors, in order to be in the same position as then the department would need $54 million dollars.

 

New sources of income include state wildlife grants which are federal funds to be used for specific species of special concern and can’t be used for general game animals.  They are also getting increased funding from competitive grants and non resident preference points.

 

Nonresident license sales cover 78% of the license revenue.  Antelope, elk, deer and fish make up 97% of license revenue.  Licenses sold have dropped precipitously since 1998. 

 

Ms. Frank explained the nature of federal money they receive.  Most is from PRDJ money which is dependant on sales of recreational equipment but is relatively stable.  The others are competitive grants and that amount is unknown from year to year. 


Mr. Cleveland explained that license receipts are getting somewhat better as the wildlife populations are increasing.  Generally, the number of animals is appropriate for the carrying capacity, although there are a lot of elk.

 

In 2004 the department received their first general fund appropriation in thirty years.  2005 was the first year they received general funds for ongoing programs – veterinary services and sage grouse working groups.  In 2006 they received $15.7 million for capital construction plus $4 million for the same ongoing programs.

 

Ms. Frank then addressed expenditures.  Personnel has become a much larger portion of the budget since 1992.  Much of this is due to health insurance.  Habitat and terrestrial management are a large part of the budget now also.

 

With the electronic license system the financial management costs will likely not go down.  It will create more and better information.  Only 50% of the selling agents do not want to go electronic.  Those 50% that do go electronic will account for 90% of the sales.  The low participation is surprising to them since the department is paying for the equipment.  They think that as time goes by more will come on line. 

 

Different types of funds are the operating fund, the access fund (earmarked), wildlife interest fund (earmarked) and general fund (earmarked).   Non-expendable funds are the lifetime license fund and the wildlife trust permanent fund.  They can use 6% of the lifetime fund every year.

 

The operating fund gets funded from license sales, income from sales or rental of property, federal funds and boating licenses.  In addition to the restrictions from the commission, there are lots of laws controlling what monies can be used for.  PRDJ funds cannot be used for law enforcement or licensing costs. 

 

Only two species consistently bring in enough money in license fees to cover expenses of management – deer and antelope.  Sen. Cooper was curious if the imbalance is because few people hunt certain species or whether they are expensive to manage.  Mr. Cleveland pointed out that the costs of managing many of those species include damage claims and that is charged to those species.  Also, they are difficult and expensive to gather information on.  Threatened and endangered species have the highest imbalance.

 

Changes in Recent Years.

 

Access program didn’t exist in 1992.  There is increased emphasis on habitat and disease issues.  There is an increased focus on threatened and endangered species.  There is decreased emphasis on property acquisition.  They are receiving a lot more in federally funded grants but they require matching funds.

 

Cost allocation costs are what the department has to pay other state agencies to use their services.  Those costs have increased.

 

Mr. Cleveland suggested that the legislated COLA increases in personnel costs apply to the department also.  That could be debated and they have not gotten an Attorney General opinion that says they have to.

 

While they have received general funds for major capitol construction they still have very large expenses for upkeep, maintenance, heating etc.

 

The department's goal is to maintain at least three months in operating expenses in reserve.  Cash balances have declined for several reasons.  License sales numbers have gone down.  This affects the amount of federal funds received too.  Interest income has declined.

 

Effects of complimentary licenses.

 

Bill Wichers presented the effects of complimentary licenses on the department's budget.  (Appendix 14).  There are a number of free and reduced price licenses in statute.  The reduced priced youth licenses are a strong encouragement for participation.  Other exemptions and licenses have been for good purposes but they have an annual $1.3 million affect on the department. 

 

Mr. Wichers described the different types of free or reduced price licenses available.  He stated that some costs may be overestimated because the pioneer license holders may or may not have bought a license or they may no longer be with us.  Others are impossible to estimate so their impact is underestimated.

 

They would like a mechanism to reimburse the loss annually. Sen. Ross asked if there is any reciprocity issue with respect to nonresident youth license.  The only reciprocity is with respect to fishing on Flaming Gorge.  Other than that Wyoming is not involved in any.  Most states do give reduced price nonresident youth licenses.  Several states do reimburse the department, specifically Nevada, and he will find out for the committee what other states do.  Rep. Gingery asked if there has been any discussion of giving the department the authority to set the fees.  It has come up in the past and there has never been any willingness on the part of the legislature to give up that authority.

 

Kathy Frank pointed out that every free license does not count toward the PRDJ allocation.  If the department were reimbursed even by the legislature, the PRDJ funding would go up.  Ms. Frank agreed to  give the committee an estimate of what the difference would be.

 

The committee recessed at 5:00 pm and reconvened at 8:35 am May 2, 2006.

 

Comprehensive Wildlife Conservations Strategies.

 

Walt Gasson, Special Assistant to the Director, gave a presentation on the history of Comprehensive Wildlife Conservation Strategies, commonly referred to as wildlife action plans.  (Appendix 15).  State fish and wildlife agencies have been recovering and preserving species for years.  They have done a better job with species that are hunted and fished because of the concept that the user pays.  In 2000 there was a big push to pass legislation in Congress that would send money to states.  In 2001 Wyoming received $485,000.  Since 2002 the state has received approximately $600,000 for species of the greatest need.  To receive the money the state needed to produce a comprehensive wildlife conservation strategy or they would have to return all the monies received since 2002.  The department needed the resources, but they also saw it as an important opportunity to ensure that species do not get listed under the endangered species act.  This also gave the department an opportunity to collaborate with many stakeholders in developing wildlife action plans.  Chairman Childers asked who the partners were on the creation of the wildlife plans.  Mr. Gasson stated that Partners provided data. Major stakeholders provided perspective. Both were invaluable, and they appreciated all of them.  Mr. Gasson provided the following information after the meeting: 

 

Partners:

These are agencies, organizations, groups and individuals with data on SGCN or access to data on SGCN. They include:

 

• Wyoming Natural Diversity Database (WYNDD);

• The Nature Conservancy (TNC);

• Bureau of Land Management (BLM);

• U.S. Forest Service (USFS);

• National Park Service (NPS);

• U.S. Fish and Wildlife Service (FWS);

• Biodiversity Conservation Alliance (BCA);

• Audubon Wyoming;

• Dr. Paul Bartelt – Waldorf College;

• Dr. Chuck Peterson – Idaho State University;

• Dr. Debra Patla - Idaho State University;

• Dr. Brian Smith – Black Hills State University;

• Don Tipton – Rocky Mountain Vivarium; and

• Dr. Alan Cvancara.

 

 

Major Stakeholders:

These are agencies, organizations, groups and individuals who may not have significant data or access to data on SGCN, but who have a direct and significant stake in the outcome of the strategy and who were offered an opportunity to play a role in its development. They include:

 

• Wyoming Department of Agriculture;

• Petroleum Association of Wyoming;

• Wyoming Outdoor Council;

• Greater Yellowstone Coalition;

• Northern Arapaho Business Council;

• Shoshone Business Council;

• University of Wyoming – Institute for Environment and Natural Resources;

• Wyoming Mining Association;

• Wyoming Wool Growers Association;

• Wyoming Association of Conservation Districts;

• Wyoming Stock Growers Association; and

• Wyoming Farm Bureau.

 

There are eight elements to a wildlife action plan.  Those include a look at the distribution and abundance of the animals, location and condition of key habitats, what problems are there with the habitats, what actions are necessary to conserve the habitat, what monitoring will they do, what procedures are necessary to review the plan, coordination with governmental agencies and effective public participation.

 

First, the department needed to define what species were in need.  They used a native species status matrix that looks at population status and habitat conditions.  The matrix placed the species into seven categories.  The first four categories were in the final list of 279 species of greatest concern.  They consist of 54 mammals, 60 birds, 26 reptiles, 40 fish and others.  With each species they gathered information and put together a species summary that states everything they know about each species.

 

Second, they defined key habitats.  The problem is that no agency defines habitats in the same way.  For terrestrial species they used eco-regions and ecological systems.  Wyoming has 7 eco-regions and 52 ecological regions.  For aquatic habitats they used aquatic regions and watersheds.  There are 3 major aquatic regions and 432 watersheds.  Watersheds are defined by hydrologic unit codes (HUCs). 

 

Senator Cooper asked about the critical habitat definition.  Mr. Gasson stated that critical winter habitat is habitat that is deemed necessary to sustain a population during the hardest times. 

 

The department uses computer programs to overlay the distribution of several species to see interactions and interdependence on habitats.  That lets them know where the greatest need is for the greatest number of animals.  The tool can be used to decide where to do a proactive habitat improvement or can be used reactively to help find where the least impact will occur with development.  It can also be used to find good places for mitigation.

 

Chairman Childers asked if the watershed mapping includes water discharges from coal bed methane.  Chairman Burns asked if those discharges are creating habitat.  When the wells are finished the state may get into trouble because the habitat may be being used by threatened species even though the habitat was created by the discharges.

 

The biggest problem they have for most of the species of concern was lack of data.  This means that they don’t know what the real problems are.  The plans will be reviewed annually and updated every five years. 

 

Through the coordination effort they found that there was information out there that they weren’t even aware of.  They found that this is not just a government effort – private individuals were invaluable. 

 

The plan is worth more than the $600,000 in wildlife grants they receive because of it.  It will help avoid the listing of species.

 

In response to a question from Chairman Childers, Kathy Frank agreed to provide the committee with information on the amount of money used to survey for sage grouse and black tailed prairie dogs.

 

Sen. Massie asked if BLM was going to use this plan to decide on well placing on federal lands.  Mr. Gasson stated that he expects to see increased coordination with the state.  The state has provided comments in many environmental impact statements.  Chairman Burns noted that this information would be valuable to the Natural Resources Trust Fund Board in deciding on projects to fund. 

 

Chairman Burns asked about the distribution of federal funds.  Mr. Gasson stated that it is based on size and population of each state.  Chairman Burns pointed out that it makes no sense not to base the distributions on species diversity.

 

The department looks forward to removing species from the list of species of concern as they are able to collect more data.

 

Energy Development Impacts to Wildlife.

 

Bill Wichers gave a presentation on Energy Development Impacts to Wildlife.  (Appendix 16).  The state geological survey and the oil and gas commission provided much of the data in this presentation.

 

In the past, energy development went through boom and bust cycles.  They don’t see a continued boom-bust cycle now because of the demand from China and India.  Unstable world politics and dwindling supplies in Canada and Mexico will support a continued boom.  Wyoming is one of those states with a net output higher than import.  Sen. Massie asked how wind production fit in.  It is currently a very small percentage of the output. 

 

Coal mining will see an increase in the near future but is expected to level out.  Gas production is expected to increase dramatically.  Couple this with the increased need for housing and services to workers and there will be impacts to wildlife habitats.

 

The areas where development will occur are large.  Sage grouse use much of the development areas.  The presentation overlayed sage grouse leks, big game critical winter range, watershed and calving areas with the development areas. 

 

The presentation focused on each of the development areas individually, showing the development of wells in the area along with the location of species of greatest concern. 

 

With respect to the Jonah Field, there is a coordination office that handles the mitigation of displacement of wildlife in that area.  Game and fish has a position located in that office which is entirely funded by industry.  This is an outstanding way of handling coordination of efforts.  There is also a coal bed natural gas coordinator in Pinedale which is funded by federal agencies.  The department is also creating a coal bed natural gas coordinator in northeast Wyoming that the department is funding itself.

 

The Powder River basin has the largest number of sage grouse leks and the largest number of wells.  They expect wells on every 40 to 80 acres.  Water release is a major concern in this area because it cannot be re-injected. 

 

There is an increasingly positive relationship with industry.  Many companies work closely with the department to minimize impacts and provide mitigation.  The biggest problem is the time and money necessary to maintain those coordinations.  A great deal of time and effort is needed to handle the development.

 

The department needs to be proactive in dealing with the issues.  The efforts so far include working collaboratively with industry and BLM on development plans.    The department is shifting personnel within the department to handle these issues.  They are considering what other workloads will need to be abandoned to handle the shift.

 

Chairman Childers asked why the Big Horn basin wasn’t included.   They didn’t see it as an area of big expansion at this time.

 

Alternative Funding. 

 

Bill Wichers provided a presentation of potential alternatives to the funding problems.  (Appendix 17).

 

The presentation showed that for 2007 license fees will make up 57% of the department budget, 17% from federal aid, 17% from the general fund and 9% from other sources.

 

In deciding what areas they need alternative funding for, they looked at whether the program is specifically mentioned in Title 23, whether the program benefits more than just hunters and anglers, if the program is mandated from other sources, if the program is something they need to be doing but are not currently doing and whether the program involves conservation of sensitive species.

 

They anticipate coming to the legislature every four years for a license fee increase.  Chairman Burns suggested bringing a bill like that in a regular session.

 

Sen. Massie mentioned that these presentations show that the department always tries to balance their expenditures and revenues.  They need to let the committee know what their needs really are so they can figure what the true funding needs are.  Mr. Wichers stated that the department has been conservatively spending.  Sen. Massie wanted a detailed understanding of the budget and asked that we have that presentation at a future meeting.  Chairman Childers mentioned that is exactly what management council wants.  Chairman Burns noted that the departments budget is ahead of inflation but they don’t know what the money is being spent on.  That is the type of detail they want to see.

 

The program areas they recommend for alternative sources of income are sensitive and non-game species, energy development, conservation education and wildlife diseases.  These programs need stable long term funding. 

 

There was discussion on why the department chooses to involve themselves in something like black footed ferret captive breeding.  Mr. Cleveland stated that times were different back then.  They had more money and they had the expertise.  When they no longer had the money they handed over the responsibility to the USFWS.  They see similar issues with grizzly bears and wolves.

 

Rep. Brown asked if they go to a block grant system would the legislature be involved in those decisions.  Mr. Cleveland thinks they already have involvement in the decisions because the department is accountable to them. 

 

Chairman Burns asked what it is going to cost to manage wolves.  Worst case scenario – if they end up with trophy game status statewide, they anticipate huge costs for conflict resolution.  They also will pay for livestock losses.  Best case – if they are predators elsewhere there will still be considerable monitoring but a much smaller conflict cost.  Therefore $500,000 to $750,000 for best case and  $1.5 million for worst case.  It is a proven fact that every pack that leaves the park comes into conflict with livestock.  Once they are routinely shot at they will learn to stay away from people.  Rep. Brown asked if the department can withstand the public demands with respect to wolves.

 

For sensitive species they spend approximately $1.5 million per year and see the need to expand the programs by $2 million more.  For energy development they spend approximately $2 million now.  They would like to expand that by another $2 million.  They also would like to create $400,000 worth of new programs to deal with the energy development coordination positions.  In conservation education they currently spend $1 million and would like to expand and create new programs totaling $400,000 per year. That would include creating a game and fish television show.  Current education expenditures include BOW, OREO, publications, the hunting and fishing expo and teacher training.   Rep. Davison suggested that they are afraid that if they expand programs with general funds at this time then they may be obligated to continue those programs when the state is not flush.  Wildlife diseases are currently funded at $2 million from general funds and they don’t see a need to expand them.  Finally, they spend $1 million on existing programs that could be funded from other sources – programs like the state law enforcement radio network and cost allocation from other state agencies.  They don’t expect any expansion in those areas.

 

In the program areas they recommend for alternative sources of income, the total amount needed to support existing, expanded and new programs comes to $12.3 million per year.  This does not include capital construction that they would handle through the current process. 

 

With respect to accountability, they need to balance the need to report to the legislature with the political neutrality of the commission.  There first option would be an independent new source of money such as Powerball.  A second option would be a block grant from the legislature to the game and fish commission.  They envision this similar to the funding of the University of Wyoming.  The appropriation would set parameters but the decision on specifics of how the money would be spent would be by the commission.  They see that as a politically acceptable balance between the accountability to the legislature and to the commission. 

 

Chairman Childers stated that accountability is important.  Mr. Cleveland said they have the most comprehensive cost accounting system in the state.  They can track every minute spent by the employees and what species or program they are working on.  Chairman Childers stated that they just need to present that information to the legislature to make them more confident.

 

Chairman Burns suggested a third option – he suggested bifurcating the funding of the department and have the non-income producing budget funded under the standard general fund process.  Mr. Wichers said they are already starting to see that develop with the veterinary services program going through the general fund process.

 

The committee took public comment. 

 

Lou Cicco, Sportsmen for Fish and Wildlife, testified that he agrees that the department has come to a time where it needs to be bifurcated.  Funding could come from an additional tax.  License fees are high enough now to take care of hunting issues as long as other issues are taken care of by general funds.  Studies show that 65% of the people who come through Cody are there to see wildlife.  They should share the burden.

 

Bruce Hinchey, Petroleum Assn. of Wyoming, testified that they don’t think off-site mitigation is necessary in all energy development instances. 

 

Jason Marsden, Wyoming Conservation Voters, testified that they support alternative funding.  They are working with the other conservation groups to build support. The two big issues they see are program adequacy to ensure species are not listed.  He also sees funding fairness as the big issue.  Sportsmen have pride that they have carried the burden of saving species but they are at a point where they want to share that pride.

 

Ben Lamb, Wyoming Wildlife Federation, testified that the conservation groups need to vocally support this concept.  Sportsmen have been shouldering the load of species preservation and they are proud of it.   But it has become too much to bear.

 

Ken Hamilton, Farm Bureau, addressed federal funding.  He is concerned that the conservation strategies were driven by the federal government.  We need to be careful that when we take money from the federal government we don’t get tied with too many strings.  He doesn’t think the habitat quality portion of the conservation strategy was too driven by the feds. 

 

Dallas Scholes, with Kennecott Energy Company  representing the Mining Association, testified that the mining industry has worked very well with game and fish in the last few years.  He stated that industry has had a major role in funding and coordinating the studies and mitigations that were discussed.  Some of these mitigations make the habitat even better than it was before. 

 

Drew Baramore, Drew Consulting, testified that Jonah Field is not entirely how development is going to occur throughout the state.  It is more highly developed than other areas of the state.  The endangered species act is creating too many unfunded federal mandates on the state.  She would like the legislature demand more funds from the federal government and demand that there be less strings attached. 

 

Chairman Burns moved that the LSO write a bill that requires complimentary or reduced price licenses in the future to include a requirement that they come with a general fund appropriation.

 

Sen. Massie suggested that if they decide on a bifurcated budget he wants to build in the ability to move money between the budgets.  He also argued that he worked on the Wyoming Toad task force and he doesn’t think it was a fiasco.

 

The committee will take up whether to draft legislation for general funding of the game and fish department after it hears more detail about the department's expenditures.

 

 

Meeting Adjournment

There being no further business, Co-Chairman Pat Childers adjourned the meeting at 12:15 p.m.

 

Respectfully submitted,

 

 

 

 

Bruce Burns, Co-Chairman                                                                  Pat Childers, Co-Chairman

 


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