Senate rejects amendment to give budget flexibility on local government distributions

The Wyoming Senate on Feb. 25 rejected a second‑reading amendment to House Bill 107 that would have allowed the legislature to adjust local government sales‑tax distributions through the budget process while setting a 5% minimum floor.

Senator Hicks, the amendment sponsor, told colleagues the change ‘‘sets a hard floor that we could not go below 5% of those sales tax’’ while preserving the ability to increase distributions through the ordinary budget process. He framed the amendment as a policy tool that would allow flexibility during economic ups and downs without requiring statute changes.

Opponents said the amendment undercut predictability for cities and counties. Senator Dockstader said, ‘‘I don't think it's common sense to be flexible like this. I think we need a steady ship,’’ arguing the change risks politically motivated cuts and reduces transparency. Senator Rothfuss warned the amendment would invite frequent legislative meddling and would erode the confidence local governments need to plan budgets.

Supporters including Senators Cole and Scott said Wyoming’s revenue base fluctuates with extractive industries and that retaining flexibility is prudent. Scott said the measure ‘‘provides a reasonable compromise’’ that allows adjustments in both good and bad times.

The Senate called the roll on the amendment; the assistant chief clerk recorded 9 ayes and 22 noes. Second‑reading Amendment No. 1 to House Bill 107 was therefore defeated and the Senate returned to consideration of the bill on second reading.

Next steps: the amendment has failed; the underlying House Bill 107 remained on second reading for further floor action or subsequent amendments.