Select Committee on Capital Financing & Investments prioritizes interim studies on state facilities, permanent funds, taxes and school finance

The Select Committee on Capital Financing & Investments met to prioritize proposed interim topics and agreed to move forward with studies of statewide facilities maintenance, proposals to create a generational (intergenerational) fund, multiple sales-and-use-tax distribution issues, long-term K–12 finance options, gaming-receipts consolidation and a constitutional change to redefine “income” as “earnings.”

The committee, a statutory select committee charged with monitoring investment and capital-financing policy, heard presentations and discussion from state treasurer staff, county commissioners’ representatives and legislative staff about scope and timing for each topic. Treasurer Meyer described the fund-design discussion as “essentially called the endowment model,” and warned lawmakers that a change in the constitutional definition of distributable money would require a concrete spending policy to avoid eroding purchasing power over time.

Why this matters: the committee’s selections shape what the Legislature studies during the interim and what issues management council receives as proposed interim topics. The subjects under consideration bear directly on how the state maintains buildings, invests permanent funds, distributes tax collections to local government and schools, and structures long-term funding for education and infrastructure.

State facilities and HB 86

Members recalled last year’s legislation and work by the Joint Appropriations Committee and the State Construction Department that led to House Bill 86, which established a strategic planning process for statewide facilities. Representative Nicholas and others said the work already begun under HB 86 is a starting point but that a comprehensive estimate of deferred maintenance across all state-owned buildings would likely require hiring an outside contractor and could take about a year. One committee member suggested a presentation from the Department of Construction and the staff member referenced as Delbert to explain next steps and cost estimates. The committee instructed members to prioritize that topic for the interim calendar.

Generational fund and K–12 finance

Treasurer Meyer and other members tied discussion of a generational fund (a proposal to preserve and invest more permanent-fund dollars for long-term returns) to the state’s need to address future K–12 financing pressures. Meyer described the investment approach as an “endowment model” and cautioned that converting the constitutional definition of distributable income to “earnings” would expand the pool of money that could be used for spending. He noted the need for a clear spending policy and for preserving purchasing power across generations. Senator Driscoll recommended letting the fiscal math determine an appropriate spending range and suggested a constitutional guardrail in the 3.5–4.5 percent range or a simple “not to exceed 5 percent” cap as examples members have discussed. Committee members agreed the generational-fund topic ties closely to long-term school finance and should be studied together.

Sales-and-use tax distribution, direct distribution and YDOT

The committee heard from Jeremiah Raymond of the Wyoming County Commissioners Association about long-term direct distribution concepts that would reallocate a portion of the state share of sales-and-use tax to counties. Members discussed multiple, related sales-and-use-tax proposals, including provisions that affect the Wyoming Department of Transportation (YDOT). Representative Nicholas and others urged a primer on the history and mechanics of Wyoming’s sales-and-use-tax distribution before substantive law changes, saying the issue involves many beneficiaries and trade-offs. Senator Driscoll and others urged inviting YDOT to explain priorities and how additional revenue could be leveraged with federal funds.

Gaming receipts and consolidation

Senator Groot (Guerrero in audio) framed a study of gaming receipts as a money-focused exercise: map the current flows, identify the labyrinth of allocations, and consider whether consolidation or different distribution rules would better meet state goals. Representative Nicholas noted the large scale of gaming “churn” and the limited share the state currently receives, and urged the committee or another entity to examine the subject further.

Redefining constitutional “income” as “earnings” and spending policy

The committee singled out the constitutional change to redefine income as earnings — an item tied to a previously passed House joint resolution — as a high-priority interim topic. Treasurer Meyer warned that changing the definition would permit broader use of unrealized gains and could let the Legislature draw down corpus unless a disciplined spending policy is fixed in law or the constitution. Senator Driscoll urged numeric guardrails and said, “let’s let the math decide,” describing examples from other states where initial spending caps were later adjusted.

Treasury recruiting and administration

Committee members also received an update on the search for a new chief investment-officer for the State Treasurer’s office. Dawn Williams, deputy state treasurer, said the job description is posted and the external recruiter has begun candidate identification; “That process will take about 6 weeks,” she said. Committee members asked that the recruiter and the Investment and Finance Committee (IFC) be involved in the candidate-review and interview process.

Next steps and schedule

Committee chairs instructed members to number and prioritize the interim topics and to email their rankings within 24 hours so staff can prepare a letter to management council; staff reminded members the interim topics letter is due Friday, March 21. Senator Driscoll moved to treat the “redefining income as earnings” item as an interim topic immediately; Representative Baer did not object and the chairs said it will be placed on the interim agenda. The committee also agreed to set aside time at the first interim meeting for an educational primer on the committee’s statutory charge, investment history and the funds that the committee monitors.

Ending

Committee staff (LSO and legislative fiscal staff) will collect priorities and draft the submission to management council. Members asked staff to arrange targeted presentations (Department of Construction, State Treasurer’s investment staff, YDOT, county representatives) as the interim schedule is set.