Local water system funding.25LSO-0640, 1.0
HB0263
FISCAL NOTE
FY 2025FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Revenue increaseLSRA$90,300,000 $100,700,000 $111,700,000 $83,166,987 FY 2025FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Expenditure increasePWMTF RESERVE ACCOUNT$90,300,000 $100,700,000 $111,700,000 $83,166,987
Source of revenue and expenditure increase:
Effective fiscal year (FY) 2025 and each year thereafter, this bill guarantees the
full statutory spending policy amount to the Legislative Stabilization Reserve
Account (LSRA) from the Permanent Wyoming Mineral Trust Fund (PWMTF) Reserve
Account, which is equal to 1.25 percent of the five-year average market value of
the PWMTF. The result is an estimated revenue increase to the LSRA of $90,300,000
in FY 2025, $100,700,000 in FY 2026, $111,700,000 in FY 2027, and $83,166,987 in
FY 2028, and a corresponding expenditure increase to the PWMTF Reserve Account.
Assumptions:
The revenue and expenditure estimates utilize the January 2025 Consensus Revenue
Estimating Group forecast for investment income.
This bill also creates the Local Water System Funding Program to provide financial
assistance from the LSRA to cities, towns, and special districts for improvements
to community public water systems and community wastewater systems, resulting in
an interminable expenditure increase from the LSRA.
The State Loan and Investment Board (SLIB) is authorized to borrow from the LSRA
an amount not to exceed $50,000,000 in any one fiscal year to provide financial
assistance and amounts borrowed shall be repaid from funds available to the LSRA
from the annual distributions from investment income from the PWMTF or the statutory
spending policy amount guaranteed from the PWMTF Reserve Account. Interest on the
unpaid balance borrowed shall be charged and shall be equal to the rate of return
earned on the LSRA in the previous fiscal year. The amount borrowed from the LSRA
as allowed under the Local Water System Funding Program will be dependent on the
projects approved by the SLIB.
NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED
This bill has administrative impact that appears to increase duties or
responsibilities of one or more state agencies and may impact agency spending or
staffing requirements. As introduced, the bill does not modify any state agency
budget or current personnel authorizations.
The following state agencies will be asked to provide their estimate of the
administrative fiscal impact prior to the first committee meeting held to consider
the bill:
Office of State Lands and Investments
Prepared by: Matthew Willmarth, LSO Phone: 777-7881
(Information provided by Jason Crowder, Office of State Lands and Investments, 777-
3428)