Federal mineral royalties-distribution
amendments.
25LSO-0711, 1.0
HB0294
FISCAL NOTE
FY 2026FY 2027FY 2028NON-ADMINISTRATIVE IMPACTAnticipated Revenue increase/(decrease)BUDGET RESERVE ACCOUNT$600,000 $0 $0 SCHOOL FOUNDATION PROGRAM ACCOUNT($600,000)($0)($0)BUDGET RESERVE ACCOUNT($0)(unknown)(unknown)SCHOOL FOUNDATION PROGRAM ACCOUNT($0)(unknown)(unknown)PWMTF RESERVE ACCOUNT$0 unknown unknown CSPF RESERVE ACCOUNT$0 unknown unknown
Source of revenue increase(decrease):
This bill eliminates the current secondary distribution cap for federal mineral
royalty (FMR) revenues in fiscal year (FY) 2026 under current law in W.S. 9-4-
601(o).
The elimination of this current secondary distribution cap would decrease FMR
revenues to the School Foundation Program (SFP) in FY 2026 by roughly $600,000
and increase FMRs revenues to the Budget Reserve Account (BRA) in FY 2026 by
roughly $600,000.
This bill also creates a new secondary distribution cap for FMRs for FY 2026 and
each fiscal year thereafter. When distributions under W.S. 9-4-601(a) exceed the
forecasted amount in the last revenue forecast issued by the Consensus Revenue
Estimating Group (CREG) in the most recent even-numbered calendar year, the
additional FMR revenues in excess of the forecast that would otherwise be
distributed over the $200.0 million cap to the SFP and BRA in W.S. 9-4-601(d)
shall be credited one-half to the Common School Permanent Fund (CSPF) Reserve
Account and one-half to the Permanent Wyoming Mineral Trust Fund (PWMTF) Reserve
Account.
The projected FMR revenues in the January 2025 CREG Forecast in FY 2026 are
projected to be less than the FMR revenues projected in FY 2026 in the October
2024 CREG Forecast. Therefore, no FMR revenues would be distributed to the PWMTF
Reserve Account and CSLF Reserve Account in FY 2026. The changes to the FMR
revenue distributions in FY 2027 and FY 2028 will be based on projected FMR
revenues in the forthcoming October 2026 CREG Forecast. Therefore, the changes to
FY 2027 and FY 2028 FMR revenue distributions are unknown and cannot be
determined at this time.
Assumptions:
The above estimates are based on projected FMR revenues in Table 7 of the October
2024 and January 2025 CREG forecasts.
Any additional fiscal or personnel impact is not determinable due to insufficient
time to complete the fiscal note process.
Prepared by: Dean Temte, LSO Phone: 777-7881