Account repeal redirects funds to general fund

Summary#

SF-119, “Strategic investments and projects account-repeal-2,” would repeal Wyoming’s strategic investments and projects account and change where certain investment earnings go. Its stated goal is to revise the handling of public funds; the bill does not set out a broader goal. The governor vetoed it, so it did not take effect.

• On July 1, 2026, the state auditor would transfer the account’s funds to the general fund, except funds in the Wyoming state penitentiary capital construction account. Existing appropriations and obligations would be paid from the general fund, and future revenues otherwise directed to the repealed account would go to the general fund.
• Certain earnings from the permanent Wyoming mineral trust fund would go to the legislative stabilization reserve account instead of the repealed account. Each year, 45% of the amount credited there under that rule would be appropriated to the public school foundation program account.
• The limit on the governor’s recommended appropriations from the legislative stabilization reserve account would rise from 5% to 20% of that account’s balance for a fiscal year.
• The penitentiary capital construction account would remain separate. Starting in 2027, the state treasurer would transfer up to $10 million a year from the general fund to it, through July 1, 2038.
• The state auditor would report to the joint appropriations committee on the transfers in 2026 and 2027.

What it means for you#

• Public schools: The public school foundation program account would receive an annual appropriation equal to 45% of a specified amount credited to the legislative stabilization reserve account. The bill does not say how much that would be.
• State budgeting: The governor could recommend appropriations from the legislative stabilization reserve account up to the higher 20% limit. The bill does not require the governor to use that full amount.
• State agencies and the penitentiary construction account: The auditor would transfer funds and report on the transfers; the treasurer would make the annual penitentiary-account transfers. The construction account’s funds would be excluded from the July 2026 transfer to the general fund.
• General public: The bill would redirect account funds and certain future revenues within state government. It does not create a tax, fee, or direct public benefit.
• Current law: The parent laws being amended were not supplied, so the exact differences from current law cannot be independently verified from the materials provided.

Money#

No cost estimate or dollar total for the transfers is available in the supplied material.

• The bill would move existing account funds to the general fund, except funds in the penitentiary capital construction account.
• It would require an annual appropriation to the public school foundation program account equal to 45% of a specified amount credited to the legislative stabilization reserve account.
• It would direct up to $10 million a year from the general fund to the penitentiary capital construction account from 2027 through 2038.
• The bill requires state auditor and treasurer actions but gives no staffing or administrative cost estimate.

What is unclear#

• The amount available for transfer to the general fund, and the amounts that would flow to schools and penitentiary construction, are not stated.
• The bill does not explain how the new transfers would interact with other uses or obligations of the legislative stabilization reserve account.
• The supplied text does not include the parent laws, so it is not possible to confirm all existing account rules or how much of the amended language is new.
• The bill does not state how the 20% limit would affect actual budget recommendations or spending.

Case for#

• A possible argument for the bill is that transferring unused funds to the general fund would make them available for broader state budgeting rather than leaving them in a repealed account.
• The school-account appropriation would direct a set share of specified earnings to public school funding.
• The higher recommendation limit could give the governor more room to propose using the legislative stabilization reserve account.

Case against#

• Moving account funds and future revenues to the general fund could reduce money kept in a dedicated account for strategic investments and projects.
• Raising the recommendation limit from 5% to 20% could allow a much larger share of the reserve balance to be proposed for appropriation.
• The bill does not provide estimates showing how much the state, public schools, or penitentiary construction would receive, making the practical effects hard to assess.