Wyoming governor orders steep cuts amid revenue crisis

CHEYENNE, Wyo. (AP) - Wyoming state agencies must immediately cut spending and prepare for even deeper cuts while the state faces an unprecedented hit to revenue, Gov. Mark Gordon said Thursday.

With over a third of state revenue expected to vanish, agencies should prepare for a 20% spending reduction, Gordon said in a news conference.

Even so, Gordon said, spending cuts won’t be enough, and the state will need to look at tapping savings and finding new and/or additional revenue to patch up the budget.

Meanwhile, the coronavirus has cost Wyoming the luxury of time to finally address years of gradually dwindling revenue, Gordon said.

“Our time is now,” he said.

Wyoming faces an up to $1.5 billion revenue drop over the next two years because of coronavirus-related fiscal woes. They include less business activity overall, an ever-bleaker outlook for Wyoming’s massive coal-mining industry because of less electricity use, and low oil prices as people drive less and countries fight over prices.

Gordon previously told state agencies to freeze hiring and not proceed with large contracts, but more measures will be needed, he said.

“Even if every state employee was let go, or if we closed the prisons, eliminated all money going to the courts, and stopped funding persons with disabilities, we would still run out of funds at the end of the biennium,” Gordon said in a statement.

Legislators in March approved a two-year budget that, if the cuts proceed, likely won’t resemble actual spending. The budget takes effect at the start of the state fiscal year July 1.

Gordon plans to work with legislators on a “phased plan” to respond to the fiscal crisis. State agency directors should identify programs to eliminate by July 1 and explain the expected consequences, Gordon said.

The program cuts - along with possible salary and benefit reductions and furloughs - will likely lead to state job losses, he said.

That will create a “lot of anxiety” for state employees, but “it’s important I speak frankly, directly and not sugarcoat anything about the crisis we are facing,” Gordon said.