Repealing the school foundation program
reserve account.
25LSO-0710, 1.0
HB0293
FISCAL NOTE
This bill repeals the School Foundation Program Reserve Account (SFP Reserve
Account) effective immediately.
This bill transfers the balance from the SFP Reserve Account to the Common School
Permanent Fund Reserve Account on the effective date of the bill. The estimated
balance transferred to the Common School Permanent Fund Reserve Account is
$88,742,176. Any funds directed by law to revert to or otherwise be deposited in
the SFP Reserve account are to be reverted and deposited to the Common School
Permanent Fund Reserve Account.
This bill also repeals the secondary distribution caps for severance taxes in the
2024 Budget Bill (2024 Wyoming Session Laws, Chapter 118, Section 314) for the
fiscal year (FY) 2025-2026 biennium, effective immediately. The table below depicts
the estimated revenue increase and decrease associated with this section repealed,
by fund.
FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Revenue increase/(decrease)BUDGET RESERVE ACCOUNT – Severance Taxes$1,300,000 $0 $0 SFP RESERVE ACCOUNT – Severance Taxes($1,300,000)$0 $0
Source of revenue increase and (decrease):
Under Section 314 of the 2024 Budget Bill, when severance tax distributions under
W.S. 39-14-801(d)(ii) equal $164,800,000 in FY 2025 and $154,500,000 in FY 2026,
the distribution of further severance taxes is modified from one-third to the
General Fund and two-thirds to the Budget Reserve Account (BRA) to one-third to the
General Fund, BRA, and the SFP Reserve Account. The repeal of Section 314 restores
the traditional distribution and results in an estimated revenue decrease of
$1,300,000 in FY 2026 to the SFP Reserve Account and a corresponding revenue
increase to the BRA.
Assumptions:
The estimated severance tax distribution impacts and balance of the SFP Reserve
Account are based on the January 13, 2025 LSO fiscal profile, inclusive of the
Governor’s FY 2025-2026 biennium supplemental budget recommendations, and the
January 2025 Consensus Revenue Estimating Group forecast.
Prepared by: Matthew Willmarth, LSO Phone: 777-7881