NOTE: Due to the conversion of some of the graphs for the web site, when viewing them in the normal web view the legends are not clear. The graphs can be viewed clearly by right clicking your mouse in the center of the graph and choosing the view image option. This will open a clear image of the graph. When ready to continue within the Macro report click on your back button on the toolbar and this will return you to the entire document.

Index

A.

Description of study

1

B.

Purpose of "macro" report

3

C.

State revenues - types and history

13

D.

State expenditures - types and history

49

E.

Special note - K-12 education

102

F.

The projected shortfall

113

G.

Why is there a shortfall now?

119

H.

General options to address the shortfall

126

I.

Bibliography

128

 

 

A. General description of the Joint Legislative-Executive Revenue and Expenditure study

During the 1999 Legislative Session, there was enacted the supplemental appropriations bill, 1999 Wyoming Session Laws, Chapter 169. Section 335 of that act provided for an assessment of state revenues and expenditures. The section is set out below.

"[STATE GOVERNMENT EXPENDITURES AND REVENUES]

Section 335.

(a)  There is created a joint legislative-executive committee on state government expenditures and revenues. The committee shall consist of members appointed by the governor from the executive branch and not more than fifteen (15) members of the Wyoming legislature appointed by the management council. In making the appointments, the management council shall apportion the membership as nearly as possible to reflect the percentage of the elected membership of the majority and minority parties of the full legislature and shall appoint at least one (1) member from each party in each house.

(b)  Legislator members shall receive salary, per diem and mileage from the legislature's appropriation for traveling to and from and attending meetings of the committee as if the committee were an interim committee of the legislature.

(c)  The committee shall be staffed jointly by the legislative service office and the budget division of the department of administration and information. Other executive branch agencies shall provide assistance to the committee upon request.

(d)  The committee shall assess state government expenditures, revenues, existing tax exemptions and fund consolidation and shall use available studies, reports, agency strategic plans and budget documents to the extent practicable. The committee will make recommendations and have any recommended legislation submitted by September 30, 1999, to the legislature and the governor based on the review. The committee created by this section shall terminate October 1, 1999."

After the bill was enacted into law, the Executive and Legislative branches appointed members to this Joint Committee, which is informally referred to as the "Oversight" Committee. The members of the Oversight Committee are listed in Attachment A-1 (p.5). Staff services to the Committee were provided jointly by Executive branch personnel and the Legislative Service Office (LSO).

The Oversight Committee specified a two-part structure for the study. The first part would be a "Macro" overview of the trends in state revenues and expenditures over the past

1



10 years, and even 20 years if practicable. This "Macro" report would have limited detail and would be intended to provide a context for the second part of the report. The LSO served as the lead staff agency in preparing this "Macro" report.

The Oversight Committee identified late May as a target for completion of the "Macro" report. The Oversight Committee created two additional committees, one to direct the expenditure portion of the "Macro" report and the other to direct the revenue portion. These additional committees were comprised of both legislators and members of the Executive Branch. Attachment A-1 (p.5) also lists the members of these committees.

These two committees submitted the proposed "Macro" report covering revenues and expenditures to the Oversight Committee in May. The Oversight Committee voted to accept and release of the "Macro" report for distribution in late May 1999.

The second part of the study will consist of a review of state programs and a more in depth review of revenues. The Executive Branch is to serve as the lead staff to the Oversight Committee for this part. The Executive Branch staff is assembling a set of data which will identify state programs and data associated with each, including fiscal information, personnel and population served by the program.

The Revenue and Expenditure Committees have each formed three subcommittees for this in depth review. The Revenue and Expenditure Committees will report to the Oversight Committee by early August. The Oversight Committee is required by law to submit any recommendations for legislation to the Governor and the Legislature not later than September 30, 1999. The Oversight Committee is dissolved effective October 1, 1999.

Acknowledgments

LSO was directed to serve as the lead staff agency for the preparation of this report. This was a joint staffing effort with assistance from the following Executive branch agencies:

Office of the Governor, Office of the State Auditor

Office of the State Treasurer, State Department of Education

Department of Administration and Information

Department of Audit

Department of Employment

Department of Game and Fish

Department of Revenue

Department of Transportation

 

2

 

B. Statement of Purpose and background information for the "Macro" report portion of the Joint Legislative/Executive Expenditures and Revenues Study

 

The purpose of the "Macro" report is to provide policy makers and the general public information about historic patterns in Wyoming state government expenditures and revenues. In addition, the report is intended to provided information about the state's "budget shortfall" as it appears from data available in May 1999.

Wyoming state government receives revenue from a number of sources including the federal government, earnings from state investments and state lands, fees and charges, and of course, state taxes. State taxes include property taxes, sales and use taxes, mineral severance taxes, fuel taxes, tobacco and alcoholic beverage taxes.

Wyoming has 23 counties, nearly 100 municipalities, 48 school districts, and several hundred special districts providing services to Wyoming's citizens. These units of Wyoming local government, like state government, receive revenues from a variety of sources and in varying amounts.

Attachments A-2 through A-5 (pp. 6-9) provide an overview of sources of revenue to both state and local governments in Wyoming.

Wyoming citizens and businesses pay taxes, fees and charges to all levels of government: federal, state and local. In 1995, Wyoming citizens had a personal federal income tax liability of more than $1 billion.

This report, though, focuses on revenues and expenditures at the state government level. It is intended to convey a broad overview, not an accounting of funds or technical detail about the complexity of state revenues and expenditures.

This "Macro" report will not cover details of or policy considerations regarding specific taxes or individual state programs. Those will be considered in the coming months. Instead, information will be aggregated into categories and functional classifications so that patterns can be identified. These patterns will then provide background and a context for subsequent analysis as directed by the Joint Oversight Committee.

Over the past 20 years, Wyoming's population grew during the "boom" of the mid-1980's, decreased through the early 1990's

3



and then increased somewhat through the remainder of the 1990's. However, the estimated Wyoming population in 1998 is only about 2.4% greater than it was in 1980. (See pp. 10-11)

Public school enrollment has paralleled the state's population trends to some extent. However, actual ADM (average daily membership) in the public schools in 1998 is less than it was in 1980. It continues to decrease. (See pp. 10-11)

University of Wyoming enrollment increased at the end of the 1980's and then decreased in the mid-1990's. Community college full-time equivalent enrollment increased in the early 1990's and has remained relatively constant for several years. (See pp. 10-11)

Finally, the number of inmates in state correctional facilities as increased dramatically over the past 20 years, nearly triple the level in 1980. (See pp. 10-11)

The assessed valuation of property in the state increased during the "boom" of the early 1980's and then decreased dramatically in the mid-1980's. It has recovered slowly during subsequent years. (See p. 12)

 

4

 

ATTACHMENT A-1

 

JOINT LEGISLATIVE/EXECUTIVE COMMITTEE ON

STATE GOVERNMENT EXPENDITURES AND REVENUES

(OVERSIGHT)

Senator Jim Twiford, Cochairman

Representative Eli Bebout, Cochairman

Governor Geringer, Cochairman

Senator Hank Coe

Senator April Brimmer Kunz

Senator Grant Larson

Senator Jayne Mockler

Senator Robert Peck

Senator Bill Vasey

Representative Micheal Baker

Representative Chris Boswell

Representative John Hines

Representative Carolyn Paseneaux

Representative Louise Ryckman

Representative Rick Tempest

Johnnie Burton, Director, Dept Revenue

Frank Galeotos, Director, Dept Employment

Cynthia Lummis, State Treasurer

Max Maxfield, State Auditor

Ron Micheli, Director, Dept Agriculture

Margaret Spearman, Governor's Office

 

SELECT COMMITTEE ON EXPENDITURES

SELECT COMMITTEE ON REVENUES

Senator Grant Larson, Cochairman

Senator, Robert Peck, Cochairman

Representative John Hines, Cochairman

Representative, Micheal Baker, Cochairman

Senator Tex Boggs

Senator Mark Harris

Senator Rich Cathcart

Senator Bill Hawks

Senator Irene Devin

Senator Rae Lynn Job

Senator Bruce Hinchey

Senator Curt Meier

Senator Charles Scott

Senator Jayne Mockler

Representative Jim Anderson

Representative Chris Boswell

Representative Pat Childers

Representative Roger Huckfeldt

Representative Randall Luthi

Representative Phil Nicholas

Representative Mac McGraw

Representative Fred Parady

Representative Carolyn Paseneaux

Representative Jim Rose

Representative Louise Ryckman

Representative Denny Smith

Representative Rick Tempest

Representative Harry Tipton

State Supt Public Instruction Judy Catchpole

Secretary of State Joe Meyer

Dept of Audit Director Mike Geesey

State Treasurer Cynthia Lummis

Dept of Health Director Dr. Garry McKee

Dept of Revenue Director "Johnnie" Burton

Dept of Employment Director Frank Galeotos

Dept of Agriculture Director Ron Micheli

 

5

 

ATTACHMENT A-2

State, Local and Other Revenues for Local Governments

(For info only - not a complete list)

 

 

 

 

 

 

 

 

 

 

 

 

Note: School districts intentionally ommitted, for details on school districts, see Section E.

 

 

 

 

 

 

 

 

 

 

 

Cities & Towns

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Sales & Use Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Distribution of State's Share of Federal Mineral Royalties

 

 

 

 

 

 

 

 

 

 

 

 

 

State Fuels Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Severance Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Tobacco Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State's Contribution to Police Officer Retirement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Insurance Premium Tax - For Volunteer Firemen Pension

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Optional 1% Sales & Use Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Optional Capital Facilities 1% Sales & Use Tax

 

 

 

 

 

 

 

 

ERR

ERR

ERR

ERR

ERR

ERR

Local Optional Lodging Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Property Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle Fees/Registrations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various Fees and Charges for Sales and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Sales & Use Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Fuels Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Severance Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Tobacco Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Optional 1% Sales & Use Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Optional Capital Facilities 1% Sales & Use Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Optional Lodging Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Property Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle Fees/Registrations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various Fees and Charges for Sales and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad car taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Forest Reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taylor Grazing Act

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special Districts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Property Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various Fees and Charges for Sales and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community Colleges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State General Fund Appropriation (Type 3 - Discretionary Revenue)

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal Lease Bonus (Type 2 - Earmarked Revenue)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Local Property Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tuition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various Fees and Charges for Sales and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other State funding sources for Local Governments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mineral Royalty Grant Program (Type 2 - Earmarked Revenue)

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Mineral Royalties/Sev. Taxes-State Aid County Roads (Type 2 - Earmarked Revenue)

 

 

 

 

 

 

 

 

 

 

 

Joint Powers Loans (SLIB Loan Program)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Water Development Grants and Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation Loans (SLIB Loan Program)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

ATTACHMENT A-3

 

7

ATTACHMENT A-4

Revenue Flow Matrix (See notes below)

 

 

 

 

 

 

 

 

 

 

State

State

State

State

Local Govt.

Federal Min.

 

State

Local Optional

State

State Inheritance,

 

Investment

Mineral

Severance

Property

Property

Royalty

Fuel

Sales/Use

Sales/Use

Tobacco

Alcohol & Misc.

 

Income

Royalties/Leases

Tax

Tax

Tax

(incl. coal bonus)

Tax

Tax

Tax

Tax

Taxes

General Fund

X

 

X

 

 

 

 

X

 

X

X

Budget Reserve Acct.

 

X

 

 

 

 

 

 

 

 

Legis Royalty Impact Acct.

 

 

 

 

X

 

 

 

 

 

Highway Fund

X

 

X

 

 

X

X

 

 

 

 

K-12 (SFP Acct.)

X

 

 

X

 

X

 

 

 

 

 

K-12 (SFP Capcon)

 

X

 

 

 

X

 

 

 

 

 

UW

 

 

 

 

 

X

 

 

 

 

 

Community Colleges

 

 

 

 

X

X

 

 

 

 

 

Local School Districts

 

 

 

X

 

 

 

 

 

 

Cities & Towns

 

 

X

 

X

X

X

X

X

X

 

Counties

 

 

X

 

X

 

X

X

X

X

 

Local Govt Capcon

 

 

X

 

 

X

 

 

 

 

 

Special Districts

 

 

 

 

X

 

 

 

 

 

 

Perm Min Trust Fund

 

 

X

 

 

 

 

 

 

 

 

Perm Land Funds

X

X

 

 

 

 

 

 

 

 

 

Water Accounts

X

 

X

 

 

 

 

 

 

 

 

L.U.S.T.

 

 

X

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

 

L.U.S.T. - Leaking Underground Storage Tanks

 

 

 

 

 

 

 

 

 

Intentionally Omitted:

 

 

 

 

 

 

 

 

 

 

 

Federal Funds (Some federal funds flow directly to local entities, others flow through state agencies. All have been omitted from this matrix.)

Fees, Charges for Sales and Services, and Fines and Forteitures

 

 

 

 

 

 

 

Unemployment Insurance and Workers' Compensation

 

 

 

 

 

 

 

 

 

8

ATTACHMENT A-5

Total Local Government Revenues

 

 

 

1997-1998 Biennium

 

 

 

 

 

 

 

 

Total Revenues

 

Cities & Towns

 

 

$756,125,174

 

Counties

 

 

 

$340,384,929

 

Special Districts **

 

 

$174,981,377

 

Total Local Governments All Revenues

 

$1,271,491,480

 

Data taken from:

 

 

 

 

County Finance Report prepared for Tax Reform 2000

 

 

Prepared by Department of Audit

 

 

 

Public Funds Division

 

 

 

 

Local Government

 

 

 

 

** NOTE: These figures do not include revenues to hospitals, school districts,

or the community colleges.

 

 

 

 

9

Historical Trends in Population, Education, and Corrections

 

 

 

 

State

K-12

Community College

UW

Inmate

 

Year

Population

ADM*

Credit FTE

Enrollment

Population

 

1980

469,557

95,471

 

 

528

 

1981

491,755

97,136

 

9,635

567

 

1982

506,428

98,951

 

10,210

689

 

1983

510,861

100,327

 

10,248

758

 

1984

504,923

99,601

 

10,087

600

 

1985

499,718

100,142

10,314

10,109

712

 

1986

495,059

101,098

10,004

9,980

745

 

1987

477,005

99,078

10,775

10,401

820

 

1988

465,135

97,516

11,071

10,773

854

 

1989

458,400

96,614

11,835

12,431

888

 

1990

453,588

96,263

12,612

12,524

968

 

1991

457,779

97,459

13,661

12,656

955

 

1992

463,560

98,951

14,691

12,052

940

 

1993

469,076

99,585

14,125

12,012

953

 

1994

475,033

99,996

14,013

12,020

1033

 

1995

478,532

99,031

14,135

11,361

1143

 

1996

480,011

98,635

14,091

11,251

1292

 

1997

479,743

97,163

14,298

11,094

1363

 

1998

480,960

95,184

14,114

11,124

1413

 

* Figures reflect full K ADM.

 

 

 

 

 

10

 

 

 

 

11

 

 

12

 

C. STATE REVENUES TYPES AND HISTORY

Explanation of the methodology and limitations.

Revenues have been divided into three major types that are explained in detail below. This categorization is not intended to strictly follow accounting definitions. Instead, an attempt is made to group revenue sources to reflect a legislative or policy making perspective. While trends for certain individual revenue sources may be of some interest, this "macro" report is intended to focus on the "big picture."

This report portrays the amount of revenue actually flowing into state coffers. It does not include an analysis of transfers of revenue already received from one fund or account to another.

For this reason, internal service fund revenues have not been included in this analysis, as they are payments from one agency to another. Neither have agency fund revenues been included. In many instances, agency fund revenues are funds awaiting distribution to some other entity (such as mineral severance taxes for local governments). Agency fund revenues also include monies being held for some other non-state entity (such as the Wyo-Star account, an investment account for local governments).

Revenues to the pension funds have also not been included. These revenues also consist of transfers from other funds (e.g. employer payroll contributions), and of investment income earned by managers solely for retirement fund purposes.

Note the historical time frame for this report (1979-1998) covers a period under which the State had three accounting systems and two accounting methods. Under the old accounting systems and method, some revenues and accounts may have been classified as earmarked, trust and agency, or expendable trust. These are now under newer accounting methods and are classified differently. Literally hundreds of relatively small accounts have been created and dissolved over the last twenty years. Some remain in existence, and some do not.

The foregoing issues impact the accuracy of the figures in this report. However, they are not significant for the purpose of this "macro" view. Particularly with respect to Type 1 (Dedicated) revenues, judgments have been made by staff in categorizing data instead of engaging in lengthy

 

13

analysis of accounts over the past twenty years. The dollar amounts listed in this report are not precise with regard to any revenue source or type. However, the figures provided do reflect an accurate summary of the overall state revenue picture and fairly reflect the relative magnitude of the three different types of funds.

Also, in 1993, the State switched from a cash basis to an accrual basis for accounting. Data from the State Auditor's Office for revenues before 1993 reflect cash accounting, and for 1993 and thereafter, accounting is on an accrual basis. For many revenue sources, data was obtained from individual agencies or programs in order to avoid confusion that might result from different reports that are produced by the agencies. In some cases, these agencies may still track and report data on a cash rather than accrual basis. However, the data is still based on a twelve-month period, and differences between cash and accrual are usually very minimal. Again, the structure is intended to focus attention on the totals of the different categories of revenue, not the individual revenue sources that contribute to them.

This report contains references to funding that has been adjusted for inflation. The adjustments are based on the widely used 1982-1984 federal consumer price index for all urban consumers (1982-1984 CPI-U).

Statutory changes regarding revenue history

Clearly, state revenue profiles are affected by accounting changes and economic conditions over the years. However, the statutes regarding state revenues, taxes and distributions have not been static. There have been dozens of changes during the past 20 years that have impacted revenues and their distribution.

Some of the major changes include:

- the 1988 diversion of certain mineral severance taxes from flowing to the PWMTF and redirecting them to the budget reserve account

- 1993 increase of 1 cent in the state sales and use tax

- 1998 increase of 5 cents per gallon on fuels

Attachment C-1 (pp.23-27) contains a list of legislation enacted over the past 22 years which has affected state

 

14

revenue rates and distributions. There may be other legislation which could be included on this list.

However, the list has a two-fold purpose. First, it illustrates that the state's statutory framework related to revenues is not a constant; it changes almost annually to a greater or lesser extent. There are about 40 items on the list just from the last 10 years alone. Second, the list provides a reference to help explain why revenues changed in a particular year.

Type 1 - Dedicated Revenues.

Type 1 - Dedicated Revenues are summarized in Chart 1R (p.28). These revenues are either:

- designated for a specific purpose by the Constitution, the Act of Admission, other federal law, or trust; or

- designated by state statute to be expended for a specific purpose on an almost user fee or "quid pro quo" basis, i.e. something of value is received in return for payment. These revenues are such that it is impractical to collect these revenues and then use them for general governmental purposes. Examples include licensing fees, revenues from liquor sales used to purchase new inventory for resale, and the mill levy on oil and gas production for the Oil and Gas Conservation Commission.

Following are the components which comprise Type 1 Dedicated Revenues. These components correspond with the columns in Chart 1R (p.28).

All Federal Funds - These are all federal funds that flow to or through the state or any of its agencies. Federal funds presented here do not include any funds which flow directly to any local governmental entities (including school districts) from the federal government. These are only funds which first flow to the state, some of which then flow through to local governments and other entities.

Investment Income - This is all investment income (e.g. interest, dividend and capital gains) received by the State Treasurer's Office, but excluding investment income which is credited to the General Fund. Investment income credited to the general fund is included as Type 3 - Discretionary Revenues in this report.

15

K-12 Property Taxes and Other Dedicated Revenues - This includes:

- the statewide 12 mill levy for public schools imposed under the Constitution (the rate was 6 mills from 1978 to 1983)

- the state's share of county registration fees on vehicles and car company taxes, both of which are distributed in the same proportion as the 12 mill state property tax levy

- recapture amounts paid by school districts to the school foundation account

- beginning in 1994, up to $8 million per year in state mineral royalties. In prior years, these were flowing to the Common School Permanent Land Fund account to be invested. These are accounted for in the "Non-expendable Trust Revenue" column (column 9) in years 1978 to 1993.

Fuel Taxes - Motor Vehicle Fees & Other DOT funding - This includes fuels taxes and motor vehicle fees, both of which are required under the Constitution to be deposited into the highway fund. It also includes all other sources of revenue to the Department of Transportation (DOT), except investment income, federal funds, and mineral severance taxes and federal mineral royalties that are profiled as described in other parts of this report.

Game & Fish Revenues - This column includes all Game & Fish revenues except investment income and federal funds. Please note that data for 1998 to 1991 was obtained from Game & Fish reports, and data for 1990 to 1978 was obtained from State Auditor's Office reports. Because of these two different sources, data may not be completely consistent over the entire historical period, and inferences made from this presentation must be made with qualifications.

Workers' Compensation Revenue - This includes employer paid premium only, and does not include investment income or other revenue appropriated by the Legislature.

Unemployment Insurance Premiums - This includes all unemployment tax receipts received by the State, and does not include investment income or federal revenues.

16

Liquor Sales - This is the revenue received from the sale of liquor to liquor dealers. From this revenue, costs of purchasing the liquor and administrative costs are subtracted to compute profit. Profit is deposited into the general fund and is presented as a Type 3-Discretionary revenue in this report.

Other Non-expendable Trust Revenues - Included are mineral severance taxes credited to the Permanent Wyoming Mineral Trust Fund (PWMTF), and revenues for the Permanent Land Fund accounts (the Common School account, the University account, and the Agriculture college account). These revenues represent only the amounts deposited into the corpus of these three inviolate accounts. These revenues are derived primarily from state mineral royalties and proceeds from the sale of lands. They do not represent investment income or income from surface operations. That income is presented in the "Investment Income" column and the "Other Expendable Trust Revenues" column.

Note that beginning in 1994, up to $8 million in state mineral royalties per year which had been counted in this category from 1978 to 1993, are presented in the column 3, "K-12 Property Taxes".

Other Special Revenue Fund Revenues - Included are all special revenue fund revenues not included in any of the other categories in this report. The major sources for this category are license and permitting fees, certain fines and forfeitures, charges for sales and services, and non-state matching revenues for all state agencies, boards and commissions. Note that due to changes in accounting systems and methods over the twenty-year period, some accounts formerly classified as trust and agency accounts may now be classified as special revenue. Again, comparisons over time may not be precise.

Other Expendable Trust Fund Revenues - Included here are all revenues and non-investment income to the expendable Permanent Land accounts plus miscellaneous expendable trust accounts. Just as with the special revenue fund revenues, changes in accounting systems and methods over the last twenty years may have resulted in some of these accounts being classified differently over time. Data comparisons over time may not be completely consistent.

Other Enterprise Fund Revenues - This includes enterprise fund data that is not presented elsewhere in the report. It includes small "canteen" funds at the institutions, and the Wyoming health insurance pool fund.

17

Type 2 - Earmarked Revenues.

Type 2 - Earmarked Revenues are presented in summary on Chart 2R (p.29), and as individual components on Charts 3R, 4R and 5R (pp.33-35). These revenues are earmarked for distribution for various purposes in accordance with state statute, but not for general state revenue purposes. The criteria of Type 1 Dedicated revenues do not apply to these revenues. The legislature is largely free to enact laws to redirect these revenues as it determines. Generally, the revenues in this category are portions of mineral severance tax revenue, other excise tax revenue, and federal mineral royalties. These individual sources of revenue have been combined to reflect the five major recipients of Type 2 Earmarked Revenues as follows:

Water Accounts I & II - These are the portions of mineral severance taxes to the water development accounts only. Account I is basically for new development, while Account II is for rehabilitation of existing water projects. Investment income related to these accounts is included in Type 1 Dedicated Revenues but is technically earmarked by statute.

Transportation - This represents portions of mineral severance taxes and federal mineral royalties (including any coal lease bonus payments) that flow to the highway fund or to the highway fund for county roads (industrial road program). This does not include any fuel tax revenues for highways or for other purposes such as for leaking underground storage tanks (LUST). All fuels tax revenue, interest income and federal revenues are included as Type 1 revenues above.

Local Governments This includes portions of mineral severance tax revenues as well as revenues from severance taxes for local governments that have expired, e.g. for capital facilities. Also included are federal mineral royalties (including any coal lease bonuses) which have been earmarked for local governments, including distributions to the local government capital construction account and to the state aid for county roads accounts. This contains the local government share of state sales and use tax revenues, of cigarette taxes, and of fire insurance premium taxes.

Education This includes portions of mineral severance taxes (including revenues from expired taxes) and federal mineral royalties (including any coal lease bonuses) which have been earmarked for the school foundation program

18

account, the school foundation capital construction account, the University of Wyoming, or the community colleges.

Other Severance - This is a "leftover" category to account for unique situations. This includes mineral severance taxes diverted to the workers' compensation fund in 1987 and 1988 and to the GNMA account in 1990. Amounts included for 1992 through 1998 are the amounts that flow to the LUST accounts.

Type 3 - Discretionary Revenues.

These revenues are either those that are deposited into the General Fund or other funds and accounts all of which have been traditionally used to fund the general operations of Wyoming government. These funds are widely discretionary and are used typically to fund "the budget". These funds are neither dedicated (Type 1) nor earmarked (Type 2). Distribution of these funds is not automatic, but subject to legislative decision making each year.

(See Chart 6R, p.38)

General Fund - The sources of revenue to the general fund include three major components: sales and use taxes, mineral severance taxes, and investment income. "All other sources" have been combined into a fourth component.

Budget Reserve Account This column contains the mineral severance tax revenue that has flowed to the budget reserve account over the twenty-year period. These taxes were in addition to severance taxes required to be deposited in the PWMTF under the Constitution and have been "diverted" for other purposes beginning in FY 1987. Also contained in this column are approximately $11.5 million in protested insurance premium tax revenues which were made available in 1994, and approximately $5 million per year for 1993 and 1994 in coal severance tax penalty and interest on pre-1990 production. The only other source of revenue to the Budget Reserve Account is transfers from other funds (general fund reversions for example), and those transfers are not included as revenue in this chart. To add General Fund transfers and reversions to the Budget Reserve Account would be double-counting these funds as revenues. They are counted as funds available in the state fiscal profile, but in this revenue analysis, they are counted in the General Fund column.

Legislative Royalty Income This includes revenue from coal lease bonuses and a portion of the distribution of federal

19

mineral royalties in excess of $200 million annually which flowed to the legislative royalty impact assistance account. These are the only sources of revenue to this account.

One-Time Sources - For 1989, this includes amounts made available from the GNMA investments. These revenues were from investments in government securities, which were unavailable for distribution for several years, awaiting the outcome of a bankruptcy case. For 1993, this includes revenues recognized from the change from cash to accrual accounting, the so-called GAAP I funds. These amounts are the funds that were captured and not allowed to flow to the statutorily designated accounts. For 1994, the amounts are from a federal mineral (coal) royalty settlement ($36 million) and from the diversion of monies from the Carey Land Act fund. These funds were deposited into the Revised Emergency Budget Balancing Account (REBBA). For 1996, the amounts were from the change from cash to accrual accounting for investment income, the so-called GAAP II funds. These also represent the funds diverted and not allowed to otherwise flow to certain statutorily designated accounts.

SRA (Statutory Reserve Account) and PDRA (Policy Development Reserve Account) - Note that these accounts are not separately listed in any of the charts. All of the funding diverted to these accounts was originally from one of the one-time sources mentioned above, either GAAP I, GAAP II, or REBBA. As such, profiling revenue to these accounts would be double counting.

Observations

1. Over the past 20 years, for the current biennium, and likely for the future, the proportion of these three revenue types has remained and will likely remain generally the same:

Type 1 (Dedicated) - 52.5% (+/-3.8%)

Type 2 (Earmarked) - 21.5% (+/-3.7%)

Type 3 (Discretionary)- 26.0% (+/-2.4%)

Thus, Type 1 (Dedicated) and Type 2 (Earmarked) revenues historically comprise roughly 74% of total state revenues. Type 3-Discretionary revenues, consisting primarily of the General Fund and other reserve funds, historically comprise only about 26% of state revenues.

(See Charts 7R (p.41) and 7R-C (p.44))

2. Total state revenues in dollars have of course increased over the last 20 years. When adjusted for inflation though, total state revenue levels have been relatively flat.

20

Note too that in Chart 7R-A, the "boom" and "bust" are depicted in part as reflected in state revenues. Beginning with the 1979-1980 biennium, revenues soared through the 1985-1986 biennium followed by a steep drop in the next biennium. During that 2 year period, the state's assessed valuation decreased by about 25%.

(See Charts 7R-A and 7R-B; pp.42-43)

3. For the current (1999-2000) biennium, the funding levels for each revenue type are roughly as follows:

Type 1 (Dedicated) - $2.4 billion (57.0%)

Type 2 (Earmarked) - $0.76 billion (18.3%)

Type 3 (Discretionary) - $1.1 billion (24.7%)

(See Chart 8R; p.45)

4. Type 1 (Dedicated) and Type 2 (Earmarked) revenues historically comprise roughly 74% of total state revenues and more than 75% for the 1999-2000 biennium. Those revenues will be expended entirely and exclusively for the purposes for which they were dedicated or earmarked in accordance with federal law, the Wyoming Constitution, or state law. The Legislature has limited discretion in deciding where to spend most, but not all, of these funds.

Historic trends of Type 1 and Type 2 Revenues should be viewed with care. The trends reflect the amount of revenue available. These are automatically dedicated and earmarked for expenditure as specified. They do not reflect decisions by the Legislature and Governor through the state budget process to expend the revenues for a particular purpose.

5. Within Type 2-Earmarked revenues, historically the proportion of revenues has been distributed among the recipients approximately as follows:

Type 2-Earmarked (approx)

Education - 30%

Local governments - 40%

Transportation - 22%

Water dev. - 6%

Other - 2%

(See Graph 2R-C; p.32)

Under the education component of the Type 2-Earmarked revenues, historically 85+% flows to K-12 education purposes.(See Graph 5R-A; p.36)

21

6. Type 3-Discretionary revenues have historically accounted for the remaining 26% of state revenues. For the current biennium, the level has decreased to 24.7%. These revenues necessarily fund the remainder of state government expenditures.

(See Chart 8R; p.45)

- An index of state revenues and Types is attached (A-6; p.46).

7. The chart on p. 47 illustrates how state revenues flow by using actual figures of the 1997-1998 biennium. It also reflects that a significant portion of the Type 3-Discretionary revenues have limited availability due to shortfalls in K-12 education funding and federal requirements on state spending, such as matching requirements and maintenance of effort.

The same point is made for the chart on p. 48 but for the 1999-2000 biennium. There only 16.1% of total revenues are truly free from restrictions.

8. Note that all references to the 1999-2000 biennium are estimates.

22

ATTACHMENT C-1

Significant Statutory Changes Affecting State Taxation

1977 through 1999

Year Chapter Explanation

1977

189

         Increased severance tax on coal by 1.6% for CY 77 & 2% for CY 78 until $160M collected;

         Note: The $160M capital facilities tax expired on 1/1/87

         Increased severance tax on coal by 1.5% for Water development account; increased severance tax on coal by 1% for highway fund;

         Increased severance tax on coal by .5% to PWMTF; effective 1/1/78 (total 10.1%);

         Increased severance tax on trona by 1.5% (total 5.5%); increased severance tax on uranium by 3.5% (total 5.5%)

1977

155

Increased severance tax on coal, uranium & trona by 1.5% until $250M collected; effective 1/1/78; expired on 1/1/93

1979

37

Imposed $.04/gallon tax on gasohol (other gas taxed @ $.08/gallon)

1979

163

Granted homestead property tax exemption & appropriated $10M for program

1981

9

Imposed a use tax on cigarettes of $.08 per pack

1981

49

Increased severance tax on oil/gas by 2% (6% total); distributed to state (highway fund, PWMTF & water development account) & cities & counties

1982

74

State inheritance tax imposed

1983

173

Decreased severance tax on underground coal from 10.5% to 7.25%

1983

136

School foundation program - imposed a 12 mill state levy & 6 mill county levy (Constitutional amendment approved at the 1982 general election)

1984

70

Mass property tax reappraisal system passed - $5M appropriated

1985

207

Imposed $.08/gallon on special fuels & repealed compensatory fees on special fuels

1. The first imposition of severance tax was placed upon 1969 mineral production and was collected in 1970. The severance tax rate was 1% of the value of the gross product (based upon property tax valuation). In 1974 the severance tax rate was increased to 3% for trona, coal, other fossil fuel minerals, and oil, natural gas and oil shale. In 1974 the Legislature also proposed an amendment to the Wyoming Constitution creating the Permanent Wyoming Mineral Trust Fund which was ratified by the voters in November, 1974. In 1975 the severance tax rate was increased from 3% to 4%. Source: 1978 Wyoming Annual Report Vol. II

23

Year Chapter Explanation

1985

182

Decreased severance tax on collection wells from 6% to 1.5% & exempted from property tax through 1989

1986

3

1/4 of proceeds from severance taxes (except underground coal) diverted to worker's compensation fund

1986

22

Imposed 2.5% premium tax on insurers

1987

97

Coal Equity Tax Act of 1987 - limited severance tax to $.80/ton on high-cost coal

1987

29

Severance taxes paid on CO2 injected in oil production allowed as a credit against oil severance tax

1987

241

Granted 4% severance tax exemption for wildcat wells for 4 years (total 2%)

1988

93

Allowed deduction for return on investment for mineral production on certain capital investments for transportation facilities or processing plants

1988

73

Implemented 3 tier system for fair market value in assessing property for property tax (minerals, industrial, & all other)

1988

72

Diversion of severance taxes from PWMTF to budget reserve account (BRA) begun

1989

45

Increased cigarette taxes by $.002 to .006 per cigarette ($.12 per pack)

1989

35

Extended Coal Tax Equity Act to 1991 (3/31/91)

1989

172

Exempted coal used on processing from property & severance taxes

1989

287

Exemption for tertiary oil production from projects certified by Oil & Gas Commn.; granted a severance tax exemption up to 1/2 of wages paid to resident workers or total amount of 2% severance tax

1989

106

Continued $.04/gallon tax on gasohol 7/1/89 through 7/1/93

1989

36

Created municipal rainy day account funded with excess oil & gas severance tax & federal mineral royalties

1989

57

Repealed deduction allowed for return on investment for mineral production (on transportation facilities & processing plants)

1989

120

Continued budget reserve account diversion of severance taxes through 6/30/91

1989

144

Decreased severance tax on uranium from 4% to 2%

1989

270

Imposed a $.01/gallon tax for L.U.S.T.

1990

22

Extended 1.5% severance tax on collection wells to 1/1/95 (in lieu of 6% rate)

24

Year Chapter Explanation

1990

93

Eliminated ton/mile tax and implemented commercial vehicle fees

1990

13

Budget reserve account diversion extended through 6/30/92

1991

13

Coal Tax Equity Act extended through 3/31/95

1991

149

Reduced insurance premium tax rate from 2.5% to .75% (retaliatory provision for other states remained in effect)

1991

237

Extension of 2% severance tax exemption on tertiary production to 12/31/94 (4% total)

1991

239

Exempted specified underground mining equipment from property tax

1991

42

Exempted uranium from 4% severance tax as long as price under $17/pound

1991

139

Extended 4% severance tax exemption on wildcat wells to 12/31/94 (2% total)

1992

4

Reallocated 30% of revenues from 1.5% severance tax on coal & trona to public school foundation program account

1992

77

Extended gasohol tax reduction $.08/gallon to $.04/gallon to 2000

1993

167

Exempted oil & gas from 4% severance tax if well drilled (new production) between 93 to 96 (cap on oil $25/bbl; gas $2.75/mcf); same reduction for workover or completion for 24 months but no cap on price (2% total)

1993

107

Modified computation of school local property taxes/local resources (comparing resources before 7/1/91 & basing foundation program amount on before/after amounts)

1993

223

Added $.01 sales/use tax & changed tax distribution from 2/3 to 72% to general fund

1994

13

Gas tax distribution 13.5% to counties; 14% to state-county road account in highway fund; 15% for cities & towns; 57.5% to state highway fund

1994

85

Tax credit voucher program for ethanol up to $2M per year until 7/1/2000

1994

6

Diversion of severance taxes from PWMTF to budget reserve account (BRA) extended to 6/30/96

1995

141

Granted 50% credit against natural gas severance tax (2%) for research projects to enhance natural gas production (2% total)

1995

48

Coal Tax Equity Act extended through 3/15/99

1995

55

Exempted oil produced from previously shut-in wells from all but 1.5% severance tax for PWMTF

25

Year Chapter Explanation

1995

59

Diversion of severance taxes from PWMTF to budget reserve account (BRA) extended to 6/30/2000

1995

76

Extended tertiary production 2% exemption through 12/31/96 (4% total)

1995

104

Extended uranium severance tax exemption through 1/1/99; lowered spot price for qualifying uranium from $17 to $14/pound

1995

149

Extended 4th cent sales/use tax through 6/30/98

1995

74

Extended 1.5% severance tax for collection wells through 1/1/99 (in lieu of 6% rate)

1995

75

Extended reduced severance tax rate on oil/gas wells drilled (new production) through 3/31/98

1997

171

Extended 4% severance tax exemption for oil/gas produced from workovers & recompletions to 2001 (2% total)

1997

72

Extended tertiary production 2% exemption to March, 2001 (4% total)

1997 Spec. Sess.

3

Local option 6 mills for schools to expire as of 1998 (affects amount of state funding needed for schools)

1997 Spec.Sess.

1

Extended 4th cent sales/use tax through 6/30/2002

1998

16

Specified collection well property tax exemption applied to production for CY 94

1998

108

Increased fuel tax to $.13/gallon on gas & diesel

1998

47

Extended reduced severance tax rate on oil/gas wells drilled (new production) through 3/31/2003 (2% total)

1998

48

Extended uranium tax severance tax exemption through 3/31/2003

1999

186

Extended ethanol tax credit program from 7/1/2000 to 7/1/2003

1999

64

Coal Equity Tax Act extended through 12/31/2003; lowered maximum severance tax per ton from $.80 to $.60

1999

132

Imposed a limitation on sales/use tax on transportable home to be based on 70% of the sales price of the home

1999

165

Imposed sales/use tax on price of cigarettes (removed exemption)

1999

155

Imposed sales/use tax on price of tobacco products (cigars, snuff & other tobacco products)

26

Year Chapter Explanation

1999

168

Oil Producers Recovery Act - reduced severance tax on oil from 6% to 4% (if oil price exceeds $20/barrel the tax returns to 6%); granted sales tax exemption for sales of power to person engaged in oil extraction

1999

121

Diversion of severance taxes from PWMTF to budget reserve account (BRA) extended to 6/30/2004

27

Chart 1R Type 1 - Dedicated Revenues

 

1

2

3

4

5

6

7

8

9

10

11

12

13

 

 

 

% of Federal $

Biennium

All Federal

Investment

K-12 Property

Fuel Tax- Mot Vhc

Game & Fish

Workers' Comp.

Unemployment

Liquor Sales

Other Nonexpend.

Other Special Rev.

Other Expendable

Other Enterprise

Totals

 

 

 

 

 

 

Funds

Income

Taxes

Fees & Other DOT

Revenues

Premium

Insurance Prem.

Trust Revenues

Fund Revenues

Trust Revenues

Fund Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Biennia

 

 

1979-80

$275,229,981

$62,410,300

$42,573,670

$132,566,140

$17,422,317

$49,189,208

$31,213,208

$53,811,548

$120,900,163

$5,606,719

$16,080,163

$830,155

$807,833,572

 

 

1979-80

34.1%

 

1981-82

$304,881,936

$117,200,549

$61,608,683

$138,389,968

$28,367,882

$70,915,535

$39,745,605

$66,541,460

$291,813,527

$10,559,790

$20,130,280

$1,018,362

$1,151,173,577

 

 

1981-82

26.5%

 

1983-84

$333,548,067

$151,120,997

$186,418,511

$140,878,712

$34,244,231

$58,634,740

$88,681,717

$61,533,924

$363,139,737

$12,066,630

$29,945,515

$1,166,484

$1,461,379,265

 

 

1983-84

22.8%

 

1985-86

$442,987,660

$212,466,367

$254,679,564

$151,729,087

$36,495,965

$72,629,206

$101,079,762

$60,210,594

$364,746,138

$16,046,420

$39,948,977

$1,235,654

$1,754,255,394

 

 

1985-86

25.3%

 

1987-88

$487,671,556

$184,569,751

$204,554,364

$154,071,146

$32,766,801

$55,667,056

$76,983,445

$54,484,102

$189,165,211

$9,556,820

$34,120,809

$1,161,196

$1,484,772,257

 

 

1987-88

32.8%

 

1989-90

$539,221,307

$195,373,329

$179,535,897

$162,237,399

$31,558,656

$74,810,691

$82,497,624

$51,880,293

$172,883,589

$18,316,524

$40,846,146

$1,227,042

$1,550,388,497

 

 

1989-90

34.8%

 

1991-92

$705,151,358

$150,918,569

$198,947,979

$146,127,889

$40,585,469

$127,336,970

$70,288,024

$59,915,143

$177,450,751

$31,254,156

$37,720,819

$2,170,807

$1,747,867,934

 

 

1991-92

40.3%

 

1993-94

$821,760,284

$221,205,187

$189,976,045

$154,999,197

$50,076,121

$181,674,276

$64,058,130

$63,014,559

$167,472,123

$34,238,694

$15,938,732

$5,582,764

$1,969,996,112

 

 

1993-94

41.7%

 

1995-96

$881,811,178

$195,417,855

$206,415,952

$172,578,835

$41,846,754

$246,339,443

$53,326,329

$65,017,516

$140,097,547

$41,669,088

$9,496,157

$8,100,399

$2,062,117,053

 

 

1995-96

42.8%

 

1997-98

$973,395,367

$221,582,617

$230,037,313

$209,846,768

$44,908,838

$240,113,319

$59,268,727

$71,628,513

$172,008,138

$54,046,844

$11,342,838

$9,029,540

$2,297,208,822

 

 

1997-98

42.4%

 

1999-00 Estimate

$1,002,458,796

$242,983,258

$234,281,277

$247,544,718

$47,326,088

$229,567,644

$61,469,690

$73,850,150

$157,002,062

$55,417,548

$10,555,300

$9,985,342

$2,372,441,873

 

 

 

42.3%

 

Federal - Total federal revenues to all agencies and programs, including DOT, G&F etc. These do not include federal revenues which flow directly to local governments.

 

 

 

 

Investment Income - All investment income except that which flows to the general fund.

 

 

 

 

 

 

 

 

 

 

 

Note: There are no retirement funds investment earnings included. The figures for 1996 do not include one-time amounts made available by switching from a cash to accrual basis.

 

 

K-12 Property taxes - includes any statewide mill levies, any recapture payments, and state's share of auto registration and car company taxes, and beginning in FY 94 state royalties to the school capcon acct.

WC & UI Premiums - This is premium tax paid by employers only, it does not include interest income.

 

 

 

 

 

 

 

 

 

 

Fuel tax, motor vehicle fees, and other highway fund revenues - State's share of fuels taxes and motor vehicle fees and other revenues, does not include federal money or mineral revenues.

 

Note: Data from 1998 to 1987 was provided by the State DOT, data prior to 1987 was taken from State Auditors reports and may not be totally consistent with the data presented for 1987 to 1998.

Game & Fish Revenues - This is all revenue to G & F except federal revenue and interest income.

 

 

 

 

 

 

 

 

 

 

Note: Data from 1998 to 1991 was provided by the State G & F Dept., data prior to 1991 was taken from State Auditors reports and may not be totally consistent with the data presented for 1991 to 1998.

Liquor Sales - This is the revenue raised from the re-sale of liquor. From this figure administration costs and costs of goods are subtracted to reach profit.

 

 

 

 

 

Other Non-expendable Trust fund revenues - These are severance taxes to the PWMTF, and state mineral royalties and other revenues for the inviolate permanent land funds.

 

 

 

Other Special Rev. funds - These are all special revenue funds not otherwise itemized above.

 

 

 

 

 

 

 

 

 

 

 

Other Expendable Trust fund revenues - These are all expendable trust fund revenues not otherwise itemized above, including state royalty revenues and state leasing income for the expendable permanent land funds.

Other Enterprise fund revenues - These are all enterprise fund revenues not otherwise itemized above.

 

 

 

 

 

 

 

 

 

 

28

Chart 2R Type 2 - Earmarked Revenues

Mineral Severance Taxes, Federal Mineral Royalties, Coal Lease Bonuses, and Other Taxes to Locals

 

 

 

 

 

 

1

2

3

4

5

 

6

 

 

 

Water

 

Local

 

Other

 

 

 

Biennium

 

Accounts I & II

Transportation

Governments

Education

Severance

 

Totals

 

1979-80

 

$11,968,452

$64,874,171

$137,439,487

$92,970,107

$0

 

$307,252,216

 

1981-82

 

$30,369,702

$135,779,174

$251,130,296

$155,367,282

$0

 

$572,646,454

 

1983-84

 

$47,733,356

$194,504,997

$311,573,140

$190,516,464

$0

 

$744,327,957

 

1985-86

 

$50,867,783

$219,439,554

$330,814,163

$230,210,676

$0

 

$831,332,176

 

1987-88

 

$39,135,967

$152,757,573

$222,663,667

$165,370,153

$34,660,302

 

$614,587,663

 

1989-90

 

$39,205,604

$167,364,216

$223,828,582

$200,948,831

$3,309,044

 

$634,656,278

 

1991-92

 

$45,226,438

$171,686,940

$269,414,179

$232,624,096

$2,904,537

 

$721,856,189

 

1993-94

 

$39,713,162

$171,651,332

$284,806,178

$214,304,781

$14,670,775

 

$725,146,227

 

1995-96

 

$38,734,971

$136,752,443

$285,704,719

$204,223,105

$14,960,377

 

$680,375,614

 

1997-98

 

$44,005,976

$149,749,995

$310,331,506

$226,677,438

$18,603,760

 

$749,368,675

 

1999-00 Estimate

 

$41,000,000

$121,000,000

$303,042,477

$280,700,000

$18,000,000

 

$763,742,477

 

Column 1 is composed of mineral severance taxes only.

 

 

 

 

 

 

Column 2 is composed of mineral severance taxes and federal mineral royalties to the highway fund, and federal mineral royalties to the highway

 

 

 

fund for county roads, and does not include any LUST monies.

 

 

 

 

 

 

Column 3 is composed of mineral severance taxes and federal mineral royalties distributions to cities & towns, counties, local government capital

 

 

 

capital construction, state aid to county roads, and "others." "Others" consists of local government's share of 3% and 4% statewide sales & use

 

 

 

taxes, cigarette taxes, and fire insurance premium taxes.

 

 

 

 

 

 

Column 4 is composed of mineral severance taxes and federal mineral royalties to the school foundation program account and the school foundation

 

program capital construction account, the University of Wyoming, and the community colleges.

 

 

 

 

 

Column 5 includes Workers' Comp funds in 1987 and 1988, GNMA in 1990, and LUST accounts beginning in 1992.

 

 

 

 

Note: 1994 distributions include any GAAP I distributions that were made.

 

 

 

 

 

 

29

Graph 2R - A

30

Graph 2R - B

31

Graph 2R - C

32

Chart 3R Type 2 - Earmarked Revenues - Transportation

 

 

FMRs to

FMRs to

 

 

 

 

Highway

Highway Fund

GAAP

 

Biennium

Severance Taxes

Fund

County Roads

Distributions

Total

1979-80

$13,036,708

$48,084,624

$3,752,838

$0

$64,874,171

1981-82

$60,412,080

$69,417,060

$5,950,034

$0

$135,779,174

1983-84

$102,460,357

$84,777,958

$7,266,682

$0

$194,504,997

1985-86

$107,500,915

$103,101,378

$8,837,261

$0

$219,439,554

1987-88

$73,174,196

$73,300,479

$6,282,898

$0

$152,757,573

1989-90

$69,407,525

$90,223,268

$7,733,423

$0

$167,364,216

1991-92

$69,062,766

$93,657,013

$8,967,161

$0

$171,686,940

1993-94

$39,847,929

$91,361,735

$7,831,006

$32,610,662

$171,651,332

1995-96

$17,071,769

$111,387,816

$8,292,858

$0

$136,752,443

1997-98

$14,689,945

$125,987,925

$9,072,126

$0

$149,749,995

1999-00 Estimate

$0

$112,000,000

$9,000,000

$0

$121,000,000

 

$566,664,191

$891,299,255

$73,986,286

$32,610,662

$1,564,560,395

 

33

Chart 4R Type 2 - Earmarked Revenues - Local Government

 

Severance Taxes to:

 

 

 

FMRs to:

 

 

 

 

 

Volunteer

 

 

 

Cities

 

CTC

State Aid to

 

CTC

 

State Aid to

Sales & Use

Cigarette

Firemen's Fund

GAAP

Total

Biennium

& Towns

Counties

Cap Con

County Roads

Others

Cities & Towns

Cap Con

Counties

County Roads

Taxes

Taxes

Contributions

Distributions

1979-80

$0

$0

$0

$0

$12,743,983

$12,509,460

$16,262,297

$0

$0

$88,704,262

$6,483,226

$736,260

$0

$137,439,487

1981-82

$30,128,287

$10,042,762

$0

$0

$31,051,256

$19,833,446

$26,070,877

$0

$0

$125,975,388

$7,131,234

$897,046

$0

$251,130,296

1983-84

$64,361,381

$21,453,794

$0

$0

$40,506,923

$24,222,274

$43,449,371

$0

$0

$110,301,592

$6,393,866

$883,939

$0

$311,573,140

1985-86

$65,793,619

$21,931,206

$0

$0

$49,347,554

$29,457,537

$37,180,426

$0

$8,837,261

$111,320,913

$5,921,377

$1,024,272

$0

$330,814,163

1987-88

$35,299,241

$11,766,414

$0

$0

$22,076,006

$20,942,794

$27,356,814

$0

$6,282,898

$92,132,240

$5,140,231

$1,667,030

$0

$222,663,667

1989-90

$36,925,569

$12,308,523

$0

$0

$0

$32,222,596

$17,739,201

$2,148,173

$7,733,423

$106,817,325

$6,494,853

$1,438,920

$0

$223,828,582

1991-92

$38,031,100

$12,677,033

$0

$0

$0

$37,363,170

$20,833,261

$2,490,878

$19,927,024

$128,207,276

$8,319,245

$1,565,191

$0

$269,414,179

1993-94

$34,574,394

$11,524,798

$0

$0

$0

$32,629,191

$31,064,052

$2,175,279

$7,831,006

$136,410,678

$8,282,583

$2,542,921

$17,771,276

$284,806,178

1995-96

$26,749,432

$10,697,807

$6,443,688

$6,412,786

$0

$34,553,576

$32,459,603

$522,242

$1,880,072

$153,502,251

$8,820,429

$3,662,832

$0

$285,704,719

1997-98

$32,890,946

$13,520,581

$8,628,094

$9,072,125

$0

$37,797,995

$25,979,285

$0

$0

$171,658,286

$8,642,191

$2,142,003

$0

$310,331,506

1999-00 Estimate

$23,700,000

$10,400,000

$13,100,000

$9,000,000

$0

$37,400,000

$27,000,000

$0

$0

$171,658,286

$8,642,191

$2,142,000

$0

$303,042,477

 

$364,753,969

$125,922,919

$15,071,783

$15,484,911

$155,725,722

$281,532,037

$278,395,187

$7,336,573

$52,491,684

$1,225,030,210

$71,629,235

$16,560,413

$17,771,276

 

34

Chart 5R Type 2 - Earmarked Revenues - Education

 

Severance Taxes to:

FMRs to:

 

 

 

 

 

 

School

Community

School

University

School District

Community

GAAP

 

Biennium

Foundation

Colleges

Foundation

of Wyoming

Capital Construction

Colleges

Distributions

Totals

1979-80

$5,089,900

$1,696,634

$62,547,298

$11,258,513

$8,288,425

$4,089,336

$0

$92,970,107

1981-82

$8,929,018

$2,976,339

$99,167,229

$17,850,101

$15,082,089

$11,362,506

$0

$155,367,282

1983-84

$11,481,513

$3,827,171

$121,111,369

$21,800,046

$18,408,928

$13,887,437

$0

$190,516,464

1985-86

$12,171,961

$4,057,320

$137,005,443

$27,416,996

$32,669,968

$16,888,988

$0

$230,210,676

1987-88

$10,411,873

$3,470,624

$115,409,041

$18,848,695

$10,545,353

$6,684,567

$0

$165,370,153

1989-90

$10,865,559

$3,621,853

$153,981,043

$23,200,269

$9,280,108

$0

$0

$200,948,831

1991-92

$12,195,441

$4,065,147

$178,546,135

$27,056,780

$10,760,593

$0

$0

$232,624,096

1993-94

$16,083,054

$1,969,302

$155,924,027

$23,493,018

$9,397,207

$0

$7,438,172

$214,304,781

1995-96

$133,602

$44,534

$165,120,021

$24,878,575

$9,951,430

$4,094,944

$0

$204,223,105

1997-98

$124,075

$41,358

$180,636,101

$29,853,916

$13,210,604

$2,811,383

$0

$226,677,438

1999-00 Estimate

$2,900,000

$0

$195,400,000

$26,800,000

$52,400,000

$3,200,000

$0

$280,700,000

35

Graph 5R - A

36

Graph 5R - B

37

Chart 6R Type 3 - Discretionary Revenues

 

1

2

3

4

5

 

6

7

8

9

 

 

 

General Fund

 

 

 

 

Other Discretionary Revenues

Biennium

Sales & Use

Severance

Interest

All Other

General Fund

 

Budget Reserve

Legislative

One-Time

Grand

 

Taxes

Taxes

Income

Sources

Total

 

Account

Royalty Income

Sources

Totals

1979-80

$219,429,576

$71,231,491

$42,606,423

$87,661,730

$420,929,220

 

$0

$0

$0

$420,929,220

1981-82

$305,888,071

$160,763,333

$81,096,548

$84,284,920

$632,032,872

 

$0

$2,845,198

$0

$634,878,070

1983-84

$250,823,724

$220,146,599

$162,300,732

$99,914,017

$733,185,072

 

$0

$11,960,415

$0

$745,145,487

1985-86

$247,728,391

$222,234,970

$209,226,147

$109,797,009

$788,986,517

 

$0

$7,722,889

$0

$796,709,406

1987-88

$205,612,395

$135,168,044

$188,285,596

$110,873,765

$639,939,800

 

$6,469,604

$6,413,820

$0

$652,823,224

1989-90

$201,960,362

$139,232,319

$224,202,030

$97,208,685

$662,603,396

 

$59,990,367

$553,816

$43,246,466

$766,394,045

1991-92

$227,772,918

$146,602,750

$280,945,181

$113,520,565

$768,841,414

 

$76,176,396

$2,314,158

$0

$847,331,968

1993-94

$312,803,125

$131,050,025

$222,853,818

$145,211,684

$791,318,652

 

$84,045,168

$19,661,817

$179,519,168

$1,074,544,805

1995-96

$418,695,995

$118,127,750

$226,487,131

$126,230,053

$889,540,929

 

$56,318,690

$16,379,774

$35,649,357

$997,888,750

1997-98

$449,909,489

$140,464,016

$241,097,168

$137,604,805

$969,075,478

 

$66,649,935

$32,833,340

$0

$1,068,558,753

1999-00 Estimate

$492,500,000

$110,300,000

$247,500,000

$122,800,000

$973,100,000

 

$54,300,000

$0

$0

$1,027,400,000

Columns 1-5 are General Fund revenues by major component, and total.

 

 

 

 

 

 

Column 6 is Budget Reserve Account revenue, which consists primarily of PWMTF statutory diversion of mineral severance taxes. This column also

contains a onetime amount of $11.5 Million in protested insurance premium taxes in 1994 and approximately $5 Million per year of coal severance tax penalty and interest on pre-

1990 production in 1993 and 1994.

 

 

 

 

 

 

 

 

 

Column 7 is Federal Mineral Royalties including Coal Lease Bonuses.

 

 

 

 

 

 

Column 8 is One-time Sources including:

 

 

 

 

 

 

 

 

 

1989 - GNMA interest which was earned on investments but could not be expended until bankruptcy proceedings were finalized.

 

1993 - GAAP I accrual amounts which were captured and not distributed statutorily.

 

 

 

 

1994 - REBBA was established and funded with one-time FMR settlement of $36 Million and $2.7 Million from the Carey Land Act fund.

 

1994 - One Time monies also include inheritance tax of $20.6 Million.

 

 

 

 

 

 

1996 - GAAP II interest accrual amounts are captured where they are not distributed according to statutes and diverted to REBBA.

 

Note: SRA and PDRA accounts were funded with transfers from GAAP I & II or REBBA.

 

 

 

1999-00 estimates take into account legislative changes made during the 1999 General Session, specifically HB 274.

 

 

38

Graph 6R - A

39

Graph 6R - B

40

Chart 7R Totals of Types 1, 2, and 3 Revenues and Percentage of Total Revenues

Biennium

 

Type 1 "Dedicated"

Type 2 "Earmarked"

Type 3 "Discretionary"

Grand Total

 

 

$

% of Total

$

% of Total

$

% of Total

 

1979-80

 

$807,833,572

52.6%

$307,252,216

20.0%

$420,929,220

27.4%

$1,536,015,008

1981-82

 

$1,151,173,577

48.8%

$572,646,454

24.3%

$634,878,070

26.9%

$2,358,698,101

1983-84

 

$1,461,379,265

49.5%

$744,327,957

25.2%

$745,145,487

25.3%

$2,950,852,709

1985-86

 

$1,754,255,394

51.9%

$831,332,176

24.6%

$796,709,406

23.6%

$3,382,296,976

1987-88

 

$1,484,772,257

53.9%

$614,587,663

22.3%

$652,823,224

23.7%

$2,752,183,144

1989-90

 

$1,550,388,497

52.5%

$634,656,278

21.5%

$766,394,045

26.0%

$2,951,438,820

1991-92

 

$1,747,867,934

52.7%

$721,856,189

21.8%

$847,331,968

25.5%

$3,317,056,091

1993-94

 

$1,969,996,112

52.3%

$725,146,227

19.2%

$1,074,544,805

28.5%

$3,769,687,144

1995-96

 

$2,062,117,053

55.1%

$680,375,614

18.2%

$997,888,750

26.7%

$3,740,381,417

1997-98

 

$2,297,208,822

55.8%

$749,368,675

18.2%

$1,068,558,753

26.0%

$4,115,136,250

41

Graph 7R - A

42

Graph 7R - B

43

Graph 7R - C

44

Chart 8R

Totals of Types 1, 2, and 3 Projected Revenues

 

 

 

 

 

 

Biennium

Type 1 "Dedicated"

Type 2 "Earmarked"

Type 3 "Discretionary"

Grand Total

 

$

% of Total

$

% of Total

$

% of Total

 

 

1999/00

$2,372,441,873

57.0%

$763,742,480

18.3%

$1,027,400,000

24.7%

 

$4,163,584,353

2001/02

$2,352,564,222

55.7%

$780,642,480

18.5%

$1,087,800,000

25.8%

 

$4,221,006,702

NOTE:

These projections utilize the January 1999 CREG Report where applicable. CREG will revise projections

 

in October, 1999 and again in January, 2000.

 

 

 

 

 

45

ATTACHMENT A-6

State Revenue Index

 

 

 

Revenue Type

 

 

 

 

Type 1

Type 2

Type 3

 

 

 

Dedicated

Earmarked

Discretionary

State Taxes

 

 

 

 

 

Fuels Taxes

 

 

X

 

 

Insurance Premium Taxes

 

 

 

X

Liquor Taxes

 

 

 

X

Property Taxes

 

X

 

 

Sales and use Taxes

 

 

X

X

Severance Taxes

 

X

X

X

Tobacco Taxes

 

 

X

X

Federal Funds (State Revenues)

 

 

 

Federal Flow-throughs to agencies

X

 

 

Federal Mineral Royalties

 

 

X

X

Other Revenues

 

 

 

 

Charges for Sales and Services

X

 

X

Fees (incl. motor vehicle)

 

X

 

X

Fines & Penalties

 

X

 

X

Game & Fish licenses

 

X

 

 

Investment Income

 

X

 

X

Liquor Sales

 

X

 

 

Liquor Profit and Taxes

 

 

 

X

State Land Fund Revenues

X

 

 

Unemployment Insurance

 

X

 

 

Workers' Comp Premium

 

X

 

 

Local Taxes

 

 

 

 

 

Property Taxes

 

X

 

 

Sales and use Taxes

 

 

X

 

46

1997-1998 Biennium - Total State Revenues Flow Chart (excludes Retirement System) ($ are in Millions)

  

TYPE 1 - Dedicated Revenues

% of Total Revenues Remaining

100%

76.3%

69.1%

64.6%

59.1%

53.7%

48.6%

47.5%

46.2%

Remaining Balance

$4,115

$3,142

$2,843

$2,660

$2,430

$2,209

$1,999

$1,954

$1,900

Type 1 Dedicated Revenues Amount

(973)

(299)

(183)

(230)

(221)

(210)

(45)

(54)

(81)

Purpose

[Federal funds to and through state agencies]

[Workers Comp & Unemployment Premiums to Pay Claims and Operations]

[Deposits to Corpus of Permanent Mineral Trust Fund and Public Land Fund]

[State 12 Mill Property Tax for K-12 Schools]

[Investment Income That Does Not Go to General Fund]

[Fuel Taxes and Vehicle Fees to Highway Fund]

[Game & Fish Licenses and Revenues to Game & Fish]

[Other Special Revenue Fund Receipts For Purposes Specified]

[Enterprise Funds Liquor Commission, Purchases & Enterprise Funds]

Balance

$3,142

$2,843

$2,660

$2,430

$2,209

$1,999

$1,954

$1,900

$1,819

 

 

TYPE 2 - Earmarked Revenues

 

TYPE 3 - Discretionary Revenues

% of Total Revenues Remaining

44.2%

43.1%

39.5%

31.9%

26.4%

 

26.0%

21.0%

19.5%

Remaining Balance

$1,819

$1,775

$1,625

$1,315

$1,088

 

$1,069

$866

$804

Type 2 Earmarked Revenues Amount

(44.0)

(150)

(310)

(227)

(19)

 

(203)

(62)

All Available For Type 3 Discretionary Spending

Purpose

[Severance Taxes for Water Development]

[Severance Taxes & Federal Mineral Royalties for Highways]

[Severance Taxes, Federal Mineral Royalties & 28% of State Sales/Use Tax to Local Gov't]

[Federal Mineral Royalties & Severance to K-12, UW & CC's]

[Other Severance Tax Diversions, e.g. LUST]

 

[General Fund Expenditures Necessary for Leveraging $400-600M in Federal $ for Various programs]

[To Fully Fund K-12 Education Formula for 2 years.]

 

Balance

$1,775

$1,625

$1,315

$1,088

$1,069

 

$866

$804

 

* The $203M figure is based on 99-00 estimates and is used here as an estimate of what was expended in 97-98.

47

1999-2000 Biennium - Total State Revenues Flow Chart ($ are in Millions)

  

All Type 1 - Dedicated

All Type 2 - Earmarked

Type 3 - Discretionary

% of Total Revenues Remaining

100%

43.0%

24.7%

19.8%

16.1%

Remaining Balance

$4,163.6

$1,791.2

$1,027.5

$824.5

$668.8

Amount

($2,372.4)

($763.7)

($203)

($155.7)

 

Purpose

[This represents the total flow of Type 1 revenues to all of the various accounts listed in Chart 1R]

[This represents the total flow of Type 2 revenues to all of the various accounts listed in Chart 2R]

[These are General Fund expenditures necessary to leverage $400-$600M in federal funds for various programs]

[These are General Fund expenditures necessary to fully fund the K-12 formula for 2 years. (It does not include add. $20M in gas tax & $66M in available carryover $)]

[All available for Type 3 discretionary spending]

Balance

$1,791.2

$1,027.5

$824.5

$668.8

 

NOTE: This chart is a condensed version of the Chart on the previous page, only based on projected estimates of revenues for 1999-2000. This chart provides an estimate of the amount of total revenues that is truly discretionary for 99-00 after funding federally driven programs and the mandatory full funding of K-12. Projected revenue data is obtained from Chart 8R.

48

D. HISTORICAL EXPENDITURE PATTERNS

Explanation of the methodology and limitations.

For purposes of comparing historic expenditures, state agencies have been grouped into eight categories along functional lines. It might be desirable to report government expenditures purely by functional category rather than by agency. However, classifying programs and expenditures over the past 20 years would be a huge effort likely yielding minimally useful and imprecise data at best.

State agencies have been restructured over the years with functions and programs often being reassigned. Agencies have been dissolved, and new agencies have been created. As such, for the purpose of this "macro" report, all expenditures for an agency are assigned to a single functional category. Where reorganization and restructuring have occurred, the predecessor agency has been included in the figures for the most appropriate functional category.

Thus, precise comparison of expenditures over time within a functional category is not possible. Nevertheless, the data presented is believed to be valid for the purpose of this "macro" historical overview and provides useful information to policy makers.

The 8 categories and the agencies assigned to each are as follows:

1. Education - K-12 funding, Department of Education, Community Colleges and UW

2. Health - Department of Health - Please note that data for biennia prior to reorganization in 1989-1990 include some expenditures for what is now the Department of Family Services. Information sufficient to completely distinguish expenditures of the current Department of Family Services and Department of Health from the old Department of Health and Social Services was not obtained for this report. Thus most of the old Department of Health and Social Services is contained in this category. Only the state institutions, which are now within the Department of Family Services, are excluded in this category from 1979-1980 to 1989-1990.

3. Justice, public safety and corrections -

Department of Corrections, Board of Parole,

the Judiciary, Attorney General,

Office of the Public Defender

4. Family Services - Department of Family Services - Please note that data for biennia prior to reorganization in 1989-1990 do not include some expenditures by what is now the Department of Family Services. Information sufficient to completely distinguish the expenditures of the

49

current Department of Family Services and Department of Health from the old Department of Health and Social Services was not obtained for this report. Thus most of the old Department of Health and Social Services is contained in Category 3 - Health. Only the state institutions, which are now in the Department of Family Services, are included in this category, Category 4 - Family Services, from 1979-1980 to 1989-1990.

5. Employment, economic development and commerce -

Department of Commerce (includes Business Council, Parks and Cultural Resources),

Department of Employment, Public Service Commission,

Insurance Dept., Oil and Gas Conservation Commission,

Dept. of Fire Prevention and Electrical Safety

6. Natural resources, environment and recreation -

Game and Fish Department, Department of Agriculture,

Dept. of Environmental Quality, Environ. Qual. Cncl.,

State Engineer, Water Development Comm.,

State Loan and Investment Office, St. Geological Survey

7. Transportation - Dept. of Transportation

8. General Government -

Executive branch:

Department of Administration and Information (including licensing boards),Dept. of Audit, Dept. of Revenue

State Board of Equalization,

Office of the Governor, Governor's residence,

Secretary of State's Office

State Auditor's Office

State Treasurer's Office

Retirement system, St. Employees Group Ins.,

Military Department (Adjutant General),

Office of Administrative hearings

Legislative branch: Legislature.

For the purpose of identifying trends over the past 20 years, Categories 2 and 4 have been consolidated. Reorganization of government makes long-term historical comparisons of them separately extremely difficult. Their expenditures for the last 10 years have been separately profiled in an additional set of charts and graphs.

These 8 functional classifications or categories are funded by a mixture of expenditures from the 3 types of revenue sources. As such, total expenditures for any category may include Type 1-Dedicated and Type 2-Earmarked revenues, which are difficult to divert to another purpose, as well as Type 3-Discretionary revenues.

50

Category 1 - Education expenditures

Category 1 - Expenditures consists generally of K-12/Department of Education expenditures, University of Wyoming expenditures and the state components of Community College expenditures, explained in more detail below.

K-12 funding

Only the state's share of K-12 school funding is included in these figures. See Section E of this report for a more complete explanation of school finance.

University of Wyoming funding

University expenditure data consists of expenditures from the Section I Block Grant, which is the main operational budget, and the Section II Block Grant, which is the Self-sustaining portion of the budget.

Section I expenditures are from funds derived as follows:

Type 1 - Dedicated revenues such as federal funds and University funds which consist of tuition, interest income, permanent land fund income, charges for sales and services and other various miscellaneous sources;

Type 2 - Earmarked revenues which consist of federal mineral royalties (primarily used for bonding and capital construction); and

Type 3 - Discretionary revenues which include the general fund (and other discretionary appropriations such as GAAP).

Section II Block Grant expenditures are from the Self-sustaining programs are from University fund revenues generated as follows:

sponsored funding from contracts with federal and state government agencies, corporations, and foundations;

gifts and donations;

51

auxiliary enterprise revenues generated by operating University housing, food service and the bookstore.

All of these funds are derived from what could be classified as Type 1 - Dedicated revenues. Note that the revenue figures in this "Macro" report do not include University revenues (either Section I or II) except to the extent that they are from earmarked sources or from the "general fund". Since these Section I and II funds are exclusively for University purposes, they are reflected only in the expenditure portion of the "macro" report except as indicated above.

Community Colleges

State expenditures for the community colleges are as follows by revenue source:

Type 1 - Dedicated revenues are expended from local sources including tuition, fees, charges for sales and services and property taxes levied locally for college purposes.

Type 2 - Earmarked expenditures are expended from federal mineral royalties (coal lease bonuses) for the college contingency reserve.

Type 3 - Discretionary expenditures are expended primarily from the general fund, but may be from other discretionary appropriations such as GAAP.

Again, these expenditures do not reflect total community college expenditures.

Expenditure Categories

For each of the eight state agency categories, expenditure data is presented as a total for the category, both by summary line items and by funding source.

The summary line items in the chart for each of the eight categories list five expenditure categories:

100 series - This represents all costs associated with salaries and employer paid benefits for all personnel including full-time, part-time and at-will-employee-contract (AWEC) positions.

600 series - This line item is titled "grants and aid payments" and represents payments made to or on behalf of people. Examples are

52

Medicaid payments to providers, payments to local government or private non-profits which provide services to mentally ill or developmentally disabled individuals, and payments to school districts.

700 series - These contain any capital construction expenditures paid through agency budgets.

900 series - These are contractual expenditures. In many cases these expenditures could be classified as personnel costs, since they are typically contracts for services provided by personnel other than state employees. However, they have been shown as a separate category to ensure consistency in reporting the 100 series personnel cost figures.

All other - These include the following:

- expenditures for 200 series which is supportive services, items like supplies, travel and equipment;

- expenditures for 300 series, which is almost entirely cost allocation;

- expenditures for 400 series, which are charges for services from other agencies for direct services provided (such as computer services and using motor pool vehicles);

- expenditures for 500 series, which is space rental;

- expenditures for 800 series, which includes purchase of items for resale and other small expenses.

Funding Categories

The expenditure data for each of the charts for the eight functional categories for state agencies is also presented by funding source. There are three basic sources, i.e. general fund, federal fund and other funds. General fund and federal fund sources are self-explanatory. "Other funds" consist of an aggregation of all other sources of funds expended by the agencies within the functional category. "Other funds" includes earmarked or special revenue funds, trust and agency funds, expendable trust funds, enterprise funds, and any other sources that may have been utilized over the twenty year reporting period.

Personnel levels

Also included in the charts for each functional category of state agencies are full-time and part-time personnel figures. Again, given the restructuring of government agencies during the reporting period, precise allocation of personnel levels among functional categories is not possible.

53

Observations

1. Each of the 8 expenditure categories individually has a different configuration of expenditure series and slightly different trends in historic expenditures. The Education expenditure category has been broken down into K-12 expenditures, the University of Wyoming and Community Colleges. Note that K-12 expenditures are at the state level and do not reflect total K-12 expenditures. See Section E. of this report for more information on school finance. For the 20 year historic profile, Categories 2 and 4 are combined. They are profiled separately for a 10 year historic comparison.

(See Charts and Graphs 1E through 8EI (pp.56-86) and Charts and Graphs 2E through 4EI; pp. 96-101.)

2. Like revenues, since the "bust" of the mid-1980's, state total expenditures in the 8 categories has increased in dollars. Adjusted for inflation, expenditures have been level. (See Graph 9IE; p.90)

3. The expenditure categories 1 through 4 (Education, Health, Justice/corrections, and Family Services) receive significant funding from Type 1 (Dedicated) and Type 2 (Earmarked) revenue sources. Through the state's budget process, they also receive Type 3-Discretionary revenues.

Over the past 20 years, the share of total state expenditures devoted to categories 1 through 4 (Education, Health, Justice/corrections, and Family Services) has increased from 51% to 62% while the other categories have correspondingly decreased.

(See Graph 9GAE; p.92)

4. Over the past 20 years, the share of total state expenditures devoted to each expenditure "series" has also changed. The 600 series, "grants and aid payments", has increased from 34% to 42% of expenditures while the other series have correspondingly decreased.

(See Graph 9SE; p.93)

5. Over the past 20 years, the number of state full-time employees has increased. The number of part-time employees has actually decreased over the same period. However, for the 1997-1998 biennium, both full-time and part-time employment levels are below 1987-1988 levels, 10 years ago.

(See Chart 9PE; p.94)

6. State expenditures for local governments represent only part of the total revenues available to local governments.

54

K-12 education funding for school districts is discussed in more detail in section E. of this report.

7. Note that the sum of the expenditures in the 8 categories does not reflect total state expenditures. In addition to these 8 categories of expenditures, it is necessary to include certain Type 1-Dedicated and Type 2-Earmarked revenues to get a full picture of state expenditures.

To illustrate by example:

1997-1998 expenditures (approximate)

total for the 8 categories $3,394 (millions)

deposits to state permanent

and land trusts 172

(Type 1 - dedicated revenue)

deposits to worker's

comp trust 220

(Type 1 - dedicated revenue)

deposits to unemployment

ins. account 54

(Type 1 - dedicated revenue)

Direct transfers to

local gov't 310

(Type 2 - earmarked revenue)

Total $4.1 billion

This, along with several other computations, would have to be accomplished for each budget period to get a complete picture of state government expenditures. For this portion of the report, the focus is on the 8 categories of state expenditures as outlined above.

55

State Historical Expenditures Chart 1E

Category 1 - Education

 

 

 

 

 

 

 

 

 

 

 

 

 

by Fund Category

 

 

 

 

 

 

 

General Fund

Federal Fund

Other Funds

 

Positions

Biennium

 

(Type 3)

(Type 1)

(Mix of Types 1, 2, & 3)

Totals

Full-Time

Part-Time

1979-80

 

$152,564,486

$47,408,859

$201,552,000

$401,525,345

2,115

3,982

1981-82

 

$191,244,852

$59,065,367

$279,641,497

$529,951,716

2,470

4,068

1983-84

 

$203,426,237

$31,352,106

$473,191,131

$707,969,474

2,499

4,080

1985-86

 

$220,754,233

$60,197,987

$616,546,444

$897,498,664

2,535

4,095

1987-88

 

$283,616,874

$79,407,052

$582,231,101

$945,255,027

2,528

4,094

1989-90

 

$242,002,943

$102,865,040

$645,213,342

$990,081,325

2,437

3,980

1991-92

 

$251,923,888

$103,260,714

$749,980,664

$1,105,165,266

2,461

3,979

1993-94

 

$343,319,181

$114,023,935

$731,513,622

$1,188,856,738

2,455

3,977

1995-96

 

$385,732,532

$145,463,396

$708,778,086

$1,239,974,014

2,443

3,976

1997-98

 

$334,898,420

$160,393,077

$772,826,413

$1,268,117,910

2,741

3,082

1999-00

*

$433,162,480

$175,551,028

$838,020,347

$1,446,733,855

2,740

3,084

by Series

 

 

 

 

 

 

 

Biennium

 

100

600

700

900

All Other

Totals

1979-80

 

$99,157,274

$234,438,684

$2,025,225

$3,673,184

$62,230,978

$401,525,345

1981-82

 

$137,754,081

$315,978,055

$1,233,783

$3,834,779

$71,151,018

$529,951,716

1983-84

 

$158,480,599

$462,535,096

$703,118

$4,614,918

$81,635,743

$707,969,474

1985-86

 

$172,026,223

$617,806,104

$10,796,741

$6,384,081

$90,485,515

$897,498,664

1987-88

 

$180,173,067

$657,235,746

$877,729

$8,053,245

$98,915,240

$945,255,027

1989-90

 

$185,473,671

$681,477,728

$4,208,976

$10,849,457

$108,071,493

$990,081,325

1991-92

 

$214,022,567

$768,356,134

$1,906,723

$18,280,463

$102,599,379

$1,105,165,266

1993-94

 

$232,254,668

$833,147,330

$2,547,572

$14,127,025

$106,780,143

$1,188,856,738

1995-96

 

$253,160,173

$845,214,153

$14,463,902

$14,087,029

$113,048,757

$1,239,974,014

1997-98

 

$258,480,219

$856,493,998

$5,878,391

$17,809,514

$129,455,788

$1,268,117,910

1999-00

*

$284,305,818

$975,158,572

$900,000

$22,348,352

$164,021,113

$1,446,733,855

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

Category 1 Includes K-12 Funding, Department of Ed, Community Colleges and Commission, UW, WICHE.

Expenditure Series Codes:

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

56

 

Graph 1E

State Historical Expenditures

Category 1 - Education

FY 1979/80 - 1999/00*

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

 

 

Category 1 Includes K-12 Funding, Department of Ed, Community Colleges and Commission, UW, WICHE.

Expenditure Series Codes:

 

 

 

 

 

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

 

57

Graph 1IE

State Historical Expenditures

Total Category 1 - Education

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

 

 

 

 

 

 

 

 

 

 

Category 1 Includes K-12 Funding, Department of Ed, Community Colleges and Commission, UW, WICHE.

58

State Historical Expenditures

 

 

 

Chart 1SDEE

Category 1 - Education (K-12 Funding and Department of Education)

 

 

by Fund Category

 

 

 

 

 

 

 

General Fund

Federal Fund

Other Funds

 

Positions

Biennium

 

(Type 3)

(Type 1)

(Mix of Types 1, 2, & 3)

Totals

Full-Time

Part-Time

1979-80

 

$44,452,724

$23,602,905

$130,101,852

$198,157,481

127

17

1981-82

 

$41,092,270

$27,374,355

$196,687,385

$265,154,010

129

19

1983-84

 

$12,555,786

$104,747

$374,445,770

$387,106,303

123

18

1985-86

 

$6,626,256

$27,812,249

$502,644,186

$537,082,691

122

19

1987-88

 

$54,057,786

$41,654,039

$476,719,995

$572,431,820

121

19

1989-90

 

$9,407,299

$51,827,050

$522,669,501

$583,903,850

92

15

1991-92

 

$7,386,039

$59,156,715

$589,746,915

$656,289,669

101

14

1993-94

 

$99,012,440

$61,337,683

$562,207,019

$722,557,142

101

12

1995-96

 

$128,687,535

$87,783,795

$513,002,317

$729,473,647

87

11

1997-98

 

$65,853,376

$98,317,405

$574,597,097

$738,767,878

86

11

1999-00

*

$153,740,791

$105,013,307

$613,368,691

$872,122,789

99

13

by Series

 

 

 

 

 

 

 

Biennium

 

100

600

700

900

All Other

Totals

1979-80

 

$4,998,586

$190,686,593

$14,436

$501,175

$1,956,691

$198,157,481

1981-82

 

$6,443,074

$255,663,121

$1,952

$573,003

$2,472,860

$265,154,010

1983-84

 

$2,799,129

$383,482,223

$0

$395,070

$429,881

$387,106,303

1985-86

 

$6,776,214

$528,032,077

$0

$360,305

$1,894,095

$537,062,691

1987-88

 

$7,193,362

$561,908,878

$0

$646,401

$2,683,179

$572,431,820

1989-90

 

$6,583,268

$573,532,074

$0

$1,149,561

$2,638,947

$583,903,850

1991-92

 

$6,216,778

$646,679,589

$64,006

$1,254,510

$2,074,786

$656,289,669

1993-94

 

$5,181,916

$712,841,900

$0

$1,732,031

$2,801,295

$722,557,142

1995-96

 

$6,688,355

$717,471,970

$0

$1,980,324

$3,332,998

$729,473,647

1997-98

 

$6,707,036

$725,055,371

$0

$3,830,687

$3,174,784

$738,767,878

1999-00

*

$8,132,403

$842,322,138

$0

$15,429,980

$6,238,268

$872,122,789

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

Category 1SDE Includes State Department of Education budget and only state spending for K-12 education.

59

Graph 1SDEE

State Historical Expenditures Category 1 - Education (K-12 Funding and Department of Education)

FY 1979/80 - 1999/00*

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

 

 

Category 1SDE Includes State Department of Education budget and only state spending for K-12 education.

Expenditure Series Codes:

 

 

 

 

 

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

60

Graph 1SDEIE

State Historical Expenditures 

Total Category 1 - Education (K-12 Funding and department of Education

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

Category 1SDE Includes State Department of Education budget and only state spending for K-12 education.

61

State Historical Expenditures

 

 

 

 

Chart 1CCE

Category 1 - Education (Community College Commission)

 

 

 

by Fund Category

 

 

 

 

 

 

 

General Fund

Federal Fund

Other Funds

 

Positions

Biennium

 

(Type 3)

(Type 1)

(Mix of Types 1, 2, & 3)

Totals

Full-Time

Part-Time

1979-80

 

$28,680,705

$13,042

$0

$28,693,747

3

0

1981-82

 

$42,019,726

$86,233

$0

$42,105,959

3

0

1983-84

 

$57,414,469

$143,926

$0

$57,558,395

3

0

1985-86

 

$65,438,511

$170,780

$0

$65,609,291

3

0

1987-88

 

$68,517,059

$230,462

$0

$68,747,521

11

1

1989-90

 

$76,888,172

$224,912

$0

$77,113,084

11

0

1991-92

 

$84,287,809

$206,118

$8,059,858

$92,553,785

14

0

1993-94

 

$84,651,268

$222,651

$3,195,785

$88,069,704

8

0

1995-96

 

$91,130,068

$234,613

$4,291,818

$95,656,499

10

0

1997-98

 

$91,353,991

$139,061

$4,953,050

$96,446,102

11

0

1999-00

*

$92,044,195

$225,000

$3,164,693

$95,433,888

11

0

by Series

 

 

 

 

 

 

 

Biennium

 

100

600

700

900

All Other

Totals

1979-80

 

$120,834

$28,504,392

$0

$13,804

$54,717

$28,693,747

1981-82

 

$174,276

$41,866,147

$0

$11,217

$54,319

$42,105,959

1983-84

 

$207,054

$57,288,289

$0

$8,888

$54,164

$57,558,395

1985-86

 

$227,260

$65,307,800

$0

-$17,392

$71,623

$65,589,291

1987-88

 

$325,004

$68,344,737

$0

$14,963

$62,817

$68,747,521

1989-90

 

$338,859

$76,681,979

$0

$10,874

$81,372

$77,113,084

1991-92

 

$478,295

$87,119,843

$0

$4,445,845

$509,802

$92,553,785

1993-94

 

$910,346

$86,201,800

$0

$190,301

$767,257

$88,069,704

1995-96

 

$917,439

$93,611,030

$0

$420,851

$707,179

$95,656,499

1997-98

 

$1,064,015

$94,379,306

$0

$527,013

$475,768

$96,446,102

1999-00

*

$1,190,178

$92,653,295

$0

$27,800

$1,562,615

$95,433,888

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

Category 1CC Includes Community College Commission budget and only state spending on Community Colleges.

Expenditure Series Codes:

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

62

Graph 1CCE

State Historical Expenditures

Category 1 - Education (Community College Commission)

FY 1979/80 - 1999/00*

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

 

 

Category 1CC Includes Community College Commission budget and only state spending on Community Colleges.

Expenditure Series Codes:

 

 

 

 

 

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

63

Graph 1CCIE

State Historical Expenditures

Total Category 1 - Education (Community College Commission)

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

 

 

Category 1CC Includes Community College Commission budget and only state spending on Community Colleges.

64

 

State Historical Expenditures

 

 

 

 

Chart 1UWE

Category 1 - Education (University of Wyoming, and WICHE)

 

 

by Fund Category

 

 

 

 

 

 

 

General Fund

Federal Fund

Other Funds

 

Positions

Biennium

 

(Type 3)

(Type 1)

(Mix of Types 1, 2, & 3)

Totals

Full-Time

Part-Time

1979-80

 

$79,431,057

$23,792,912

$71,450,148

$174,674,117

1,985

3,965

1981-82

 

$108,132,856

$31,604,779

$82,954,112

$222,691,747

2,338

4,049

1983-84

 

$133,455,982

$31,103,433

$98,745,361

$263,304,776

2,373

4,062

1985-86

 

$148,689,466

$32,214,958

$113,902,258

$294,806,682

2,410

4,076

1987-88

 

$161,042,029

$37,522,551

$105,511,106

$304,075,686

2,396

4,074

1989-90

 

$155,707,472

$50,813,078

$122,543,841

$329,064,391

2,334

3,965

1991-92

 

$160,250,040

$43,897,881

$152,173,891

$356,321,812

2,346

3,965

1993-94

 

$159,655,473

$52,463,601

$166,110,818

$378,229,892

2,346

3,965

1995-96

 

$165,914,929

$57,444,988

$191,483,951

$414,843,868

2,346

3,965

1997-98

 

$177,691,053

$61,936,611

$193,276,266

$432,903,930

2,644

3,071

1999-00

*

$187,377,494

$70,312,721

$221,486,963

$479,177,178

2,630

3,071

by Series

 

 

 

 

 

 

 

Biennium

 

100

600

700

900

All Other

Totals

1979-80

 

$94,037,854

$15,247,699

$2,010,789

$3,158,205

$60,219,570

$174,674,117

1981-82

 

$131,136,731

$18,448,787

$1,231,831

$3,250,559

$68,623,839

$222,691,747

1983-84

 

$155,474,416

$21,764,584

$703,118

$4,210,960

$81,151,698

$263,304,776

1985-86

 

$165,022,749

$24,466,227

$10,796,741

$6,001,168

$88,519,797

$294,806,682

1987-88

 

$172,654,701

$26,982,131

$877,729

$7,391,881

$96,169,244

$304,075,686

1989-90

 

$178,551,544

$31,263,675

$4,208,976

$9,689,022

$105,351,174

$329,064,391

1991-92

 

$207,327,494

$34,556,702

$1,842,717

$12,580,108

$100,014,791

$356,321,812

1993-94

 

$226,162,406

$34,103,630

$2,547,572

$12,204,693

$103,211,591

$378,229,892

1995-96

 

$245,554,379

$34,131,153

$14,463,902

$11,685,854

$109,008,580

$414,843,868

1997-98

 

$250,709,168

$37,059,321

$5,878,391

$13,451,814

$125,805,236

$432,903,930

1999-00

*

$274,983,237

$40,183,139

$900,000

$6,890,572

$156,220,230

$479,177,178

* Information for 1999-00 Biennium reflects APPROPRIATIONS.

 

 

Category 1UW Includes the WICHE budget and funds expended for Section I and Section II (self-sustaining) block grants for UW.

Expenditure Series Codes:

 

 

 

 

 

100 - Personal Services (Salaries, Benefits, etc.); 600 - Grants & Aid Payments; 700 - Capital Expenditures; 900 - Contractual Services; Others - All other Series

65

State Historical Expenditures Graph 1UWE

Category 1 - Education (University of Wyoming, and WICHE)

 FY 1979/80 - 1999/00*

* Information for 1999-00 Biennium reflects APPROPRIATIONS.