revenue

Duncan Harris / Creative Commons

An unfolding court case might change how Powder River Basin coal is taxed in Montana. Last week, a Montana district court heard oral arguments in a lawsuit pitting Cloud Peak Energy against the state.

The state is asking for $3.4 million in back taxes, arguing that Cloud Peak underpaid between 2005 and 2007 by selling to an affiliated company at below-market value.

The Wyoming Senate gave initial support to a bill that would allow the state to become part of a multi-state lottery, but not before hearing a lot of questions.  

Much of the debate centered on how the lottery would be administered and costs surrounding it.  Senator Bruce Burns says money raised would go to city and county governments.
 

“They estimate that it will bring in roughly about 25 million and that it should clear based on other states close to our size about a little over six million dollars a year net,” Burns says.

Wyoming House passes bill to create state lottery

Despite concerns that a lottery would be a regressive tax, the State House of Representatives passed a bill that would allow Wyoming to join a multi-state Powerball Lottery. 

It establishes a quasi-corporation that would be tasked with making the lottery profitable.  Several lawmakers near border states say that Wyoming is losing money as residents cross state lines to buy lottery tickets. 

Wyoming House Speaker-elect Tom Lubnau says crafting a supplemental state budget will be the "overriding concern" as lawmakers open the 2013 session tomorrow

.

State financial analysts are warning that Wyoming needs to brace for flat revenues for years to come, given the slumping national demand for coal and increasing natural gas production in other states.

Gov. Matt Mead presented a budget proposal to lawmakers last month calling for cutting state agency budgets by an average of 6.5 percent.

Wyoming got some good news from the latest Consensus Revenue Estimating Group report, but it won’t be enough to stop budget cuts from occurring.   CREG reports that state revenue should increase by $85 million, mainly from projected Sales and Use tax revenue. 

But Governor Matt Mead says that will not be enough to keep him from suggesting eight-percent budget cuts to the legislature.  

CREG Co-Chairman Bill Mai says the group is cautious about a downturn in the coal industry, but they remain hopeful about other energy prices.

During his state of the state message Governor Matt Mead said that Wyoming is doing well.  He said Wyoming does not have the severe budget constraints that other statesface, but that a downturn in projected revenue means that the state has to curb its spending.

“I have not recommended deep across the board cuts to agencies,” Mead said. “Instead I used a targeted approach identifying those areas where we could slow or even reduce growth.  Some cuts have been made, but we should distinguish between cuts and reducing growth.  There is a real difference.”

Top Wyoming lawmakers are directing state agencies to brace for possible budget cuts.

Republican Sen. Phil Nicholas, of Laramie, and Republican Rep. Rosie Berger, of Big Horn, are co-chairmen of the Joint Appropriations Committee. They wrote a letter telling state budget officials that agencies should be prepared for cuts ranging up to 8 percent in the coming two-year budget cycle.