CHEYENNE — Governor Mark Gordon released his supplemental budget proposal Monday and held a press conference to discuss its details.

The supplementary budget includes additional cuts on top of the 10 percent cuts that Gordon implemented in July. He said the state has worked hard to avoid making too many across the board cuts, and instead have tried to be strategic with their cuts.

The Governor’s proposed budget would cut state funding by more than $500 million and fulfills his constitutional requirement to present a balanced budget. This proposed budget reflects total cuts to state agencies averaging 15 percent, while seeking to preserve the health, safety and welfare of Wyoming citizens. 

“Our circumstances require that we make further reductions in order to meet our Constitutional obligation to balance Wyoming’s budget. These cuts to state agencies will result in the elimination of both private and public sector jobs,” Governor Gordon said. “In approaching this supplemental budget, I have focused first on what is constitutionally mandated, thereby protecting the health, wellbeing and liberties of all Wyoming citizens.

$300 Million Shortfall Comes From K-12 Education

He said a $300 million shortfall remains, which comes from funding K-12 education. This overrun is covered by the state’s Rainy Day Fund, a process the Legislature established, which has about $1.4 billion. Left unresolved, this deficit could grow to as much as $600 million in two years.

“A well-funded educational system is a source of pride and economic opportunity for our state. It is essential for our families and our children just as low taxes are,” Governor Gordon wrote in his budget message. “Our circumstances require that we evaluate all school spending and consider its importance to our state’s future. These are dollars that go into local economies too. I appreciate the Legislature’s Recalibration Committee’s hard work on this topic and look forward to their proposals.”

Reductions Will Impact Private Sector

Governor Gordon said reductions include 62 filled positions and 44 vacant positions in this round of cuts in state agencies. In the previous round, 253 vacant and unfunded positions were eliminated, and there were 21 reductions in force, which means actual people out of a job.

“All of these cuts taken together, they are going to impact Wyoming people, they are going to impact Wyoming communities,” Governor Gordon said.

He said with about half of the state’s workforce working in communities outside of Cheyenne, these cuts and reductions will have an impact on private companies providing private services. The cuts will have a “multiplier effect”, he said.

“I’m very concerned about that for every hundred employees, there are about 160 private sector jobs that depend on those hundred state employees,” he said.

Cuts Could Be Permanent if Revenue Does Not Improve

Governor Gordon is also proposing to simplify the state’s budget structure, which currently includes a large number of accounts. His proposal is for “One Checking Account, One Savings Account.”

“This would make the state’s budgeting process more transparent, reflecting my pledge for fiscal transparency,” he said.

After July’s budget cuts, the Governor took a more strategic approach to this next round of reductions, reaching a balanced budget with some agencies absorbing deeper cuts than others.

Among the Governor’s total proposed cuts is $135 million to the Wyoming Department of Health (WDH). The programs affected by the WDH cuts will impact healthcare coverage for disabled and low-income residents, mental health services, substance abuse treatment, and developmental preschools. 

He however avoided making as deep of cuts in law enforcement, public safety, the Attorney General’s office, public defenders, and district attorneys.

“It is a fact that we cannot reduce our spending without looking at our largest agencies,” the Governor continued. “The Department of Health, the University of Wyoming, the Community Colleges, the Department of Corrections and the Department of Family Services make up two-thirds of the state’s general fund budget.”

The $700 million general fund budget of the University of Wyoming and the community colleges makes up almost a quarter of the total general fund budget. To balance the budget and prepare for future revenue shortfalls, the Governor is proposing nearly 15 percent reductions to higher education. This could result in tuition increases.

Some agencies, including the Governor’s Office, will experience nearly 20 percent cuts if the Legislature approves this proposed budget.

“I think it’s time that we really face up to these facts. Without improvements in our revenue picture, these cuts will most likely be permanent,” Governor Gordon said.

The Governor’s proposed supplemental budget can be viewed at https://ai.wyo.gov/divisions/budget/wyoming-state-budget