State cuts impact staffing, services

WORLAND — Last week Wyoming Governor Mark Gordon announced the finalization of the first round of state budget cuts totaling more than $250 million, with an additional $80 million in cuts to maintenance of state buildings and those at the university and community colleges.

The 10% cuts to state agencies, boards and commissions will have significant effects on Wyoming communities and citizens, as the cuts will impact important services that people depend on and will reduce general fund dollars that enter the private sector, according to a press release from the governor’s office.

The Department of Health, with the state’s largest budget, will see a 9% cut totaling approximately $90 million. Department of Health programs facing cuts and elimination include those that serve senior citizens, disabled individuals and those with very low incomes. Among the cuts are the phased elimination of the Wyoming Home Services program, an Aging Division program which provides services to individuals who are at risk of premature institutionalization; elimination of some immunization funding for children; and a reduction in funding for early childhood developmental and educational programs.

The University of Wyoming and the states community colleges had their budgets cut by 10% as well. As the Boards of Trustees implement those cuts and address other revenue shortfalls, program cuts have already occurred, and more are likely. These cuts will mean reduced higher education options for Wyoming students. One program cut was Wyoming Works, an initiative the Governor supported to help enhance the state’s workforce.

The Department of Family Services is eliminating vacant positions in the state office and field offices across the state, including at the Boys School in Worland and the Girls School in Sheridan. Additionally, this means fewer people to work on foster care and child protection. DFS cuts also mean the defunding of the Community Juvenile Services Boards, which are county-based diversion programs to prevent juvenile incarceration, and the burial program, which pays up to $500 to funeral homes for burial expenses for the indigent.

The Department of Corrections will also see significant cuts to programs that keep the public safe. Parole agents will now be required to supervise additional offenders, and programs that help inmates re-enter Wyoming communities and not reoffend will see reductions in funding.

“These cuts that we have made are devastating, but necessary given the state’s fiscal picture,” Governor Gordon said. “A third of our revenue has dried up since the beginning of the year. I am Constitutionally required to balance the budget. Our state cannot deficit spend the way the Federal Government can. Just to manage this crisis, difficult decisions had to be made.

“None of them are easy, nor are they designed to highlight critical programs for political effect, the Governor continued. These are the types of cuts we will continue to have to make to get our budget in balance. These hurt, and what comes next hurts more. I recognize the impact these cuts will have on Wyoming families and I am truly saddened that we had to make them.”

The Department of Health, Corrections, Family Services, the University of Wyoming and the community colleges make up two-thirds of the state’s general fund budget.

The governor continues to consider options for addressing the remaining $500 million shortfall, an amount just slightly larger than the entire contribution from the State to the University of Wyoming. State agencies have already developed proposals on further cuts to services, and the governor is working with legislators on other options, all of which require legislative action.

On top of these cuts the governor has put in place furloughs for higher paid state employees and is consolidating human resources across government.

Rep. Mike Greear (R-Worland) said in 2016 he served on the Joint Appropriations Committee and “we thought we saw the bottom drop out” and they made 10% cuts or about $260 million similar to how the governor is doing it, allowing each department and agency to determine where to make those cuts.

“You can go in and cut 10% and still keep your core mission for the most part,” but the shortfall is still almost double or triple that depending on how revenues actually come in throughout the year.

He said in that initial 10% departments cannot fill vacant positions, cut travel, eliminate software upgrades, skimp on office supplies, and things that you can do in a business.

“We cut another 10% and we are going to lose services and a lot of them,” Greear said.

He said he heard a saying the other day that Wyoming is the most “conservative socialists in the country. I was offended but the fact is, a family of three we pay $3,100 in taxes and we get over $30,000 worth of services. Some of that is because we are a rural area with interstates but the rest of that is that the extractive industry has paid the bulk of our taxes. As a result we’ve got great schools, great community college system, great university, we have great services down in small rural communities like Worland, for our elderly, for our disabled. It’s been wonderful, but it’s not going to continue.”

EDUCATION

During a press conference Wednesday, Aug. 26, Governor Gordon said due to previous Supreme Court decisions, addressing the shortfall in K-12 education is not as easy because he is limited on what he can do.

Greear said, “We all feel that our hands are tied. The education deficit is about $750 million a year. Basically, we have two years in the LSRA (Legislative Stabilization Reserve Account/rainy day fund) to fund education if nothing else changes.”

The governor is asking districts to voluntarily cut 10% just like the other state agencies are doing.

Greear said the K-12 funding model is undergoing a recalibration for legislative approval during the 2021 session.

“I’ve talked to our local districts in Worland and Ten Sleep, they get it. There are other districts that are flat not that way. I’ve sat in meetings where they have said ‘if you don’t fund us we’ll sue you,’” Greear said.

He said he hopes the districts will take the lead on making cuts. One way the Legislature can help is providing more local control over the funding and not having the state dictate exactly where the funding must be allocated.

Greear also sees technology as an avenue that may help districts. “I believe there is some hope with how we are teaching education and living our lives, that there may be some efficiencies found,” he said, for example allowing some districts to attend classes in other districts remotely rather than have each district offer certain classes.

TAXES

As for other revenue sources, the Wyoming Tribune Eagle reported via the Wyoming News Exchange that the State Joint Revenue Committee rejected multiple tax proposals.

Greear who has supported a 10-cent increase in fuel tax several years ago, and a lodging tax increase last year said, “My fear is that until we exhaust our savings, and until we make cuts to programs that our constituents are up in arms about that no one is going to want to talk about other solutions.”

He said he does not necessarily have the answers but believes many options need to be discussed, whether it’s a corporate income tax, state income or increase in the state sales tax or other options.

“I don’t like the concept of raising taxes. Our obligation as policy makers is not to rush out, raise taxes and spend money, it’s not what we do, but it is to have the discussions of what works.”

He noted the Legislature received criticism when they approved legislation for online sales tax. He said the June revenue update was better than anticipated in May because sales tax was better than forecast.

Revenue from online sales was up 152%, he said.

NEXT SESSION

Greear said he does not expect a special session to address the cuts and shortfall. He said he does not expect the 40-day session to have a lot of bills, especially bills with any expenditures.

No matter what happens with revenue options and the cuts, Greear said, “We can keep the state open, but it will not look like it does now. This is awful – I know most of the people in Washakie County and my district are rational about it. They understand. We’ll take some time. See what the pain really feels like, start to see what we want our community to look like in the future, and hopefully start making decisions.”

Additional stories on the budget cuts via the Wyoming News Exchange can be found at wyodaily.com.