Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Act Of Admission Earnings topic
No spam. Unsubscribe anytime.
Wyoming asks Congress to let state spend ‘earnings’ from permanent funds, not just interest
Summary
The Select Committee on Capital Financing & Investments on Thursday discussed House Joint Resolution 1, which asks Congress to amend Wyoming’s Act of Admission so the state can base spending on “earnings” rather than the narrower terms “interest” or “income.”
CHEYENNE — The Select Committee on Capital Financing & Investments on Thursday reviewed House Joint Resolution 1, a request that the U.S. Congress amend Wyoming’s Act of Admission so the state may spend “earnings” from permanent funds rather than being limited to “interest” or “income,” committee staff said.
The change would let Wyoming treat realized and unrealized investment gains the same way endowments and many public funds do, supporters told the committee, allowing state managers to pursue a broader set of long‑term investments on behalf of state beneficiaries.
LSO staff member Mr. Shaw told the committee the resolution asks the congressional delegation to replace the narrower wording in three spots in the Act of Admission with the term “earnings,” which would broaden the funds the state may use to support schools and other constitutionally designated programs. Shaw said he has sent a formal letter to the delegation and that staff in the delegations were “considering it.”
Why it matters: State investment staff and consultants say the current language constrains portfolio design. Patrick Fleming, chief investment officer in the treasurer’s office, told the committee that the current spending rules force a heavier allocation to income‑producing securities such as bonds and reduce the state’s ability to capture the higher long‑term returns typically available to diversified endowments.
“The way our spending policy is is no. You can only get the dividend that Nvidia pays,” Fleming said in an example, noting that unrealized gains on equities cannot currently be used for annual spending under the Act of Admission language. He added that changing to a total‑return model would permit the state to consider dividends, interest and capital appreciation together when setting spending levels.
What the committee heard: LSO staff described the practical steps. Shaw said a congressional change is required before the state can alter its own constitution or implementing statutes; he characterized the process as multi‑step and likely to take more than one legislative cycle. Shaw also told the committee that other states have pursued similar changes and that the letter the legislature sent on May 1 outlines the request for congressional action.
Next steps: Committee staff will continue to follow up with the delegation. Shaw said it is common for such federal changes to be attached to other federal legislation rather than processed as a standalone bill, and he said the office will press the delegation for updates.
Ending: Committee members asked clarifying questions about timing and the steps that would be required at the state level once Congress acts. No formal committee vote on the resolution occurred during the meeting; the committee recorded the discussion and asked staff to continue tracking congressional engagement.
