Wyoming general fund revenue jumps $257 million in October forecast

Wyoming general fund revenues are projected to be $257 million higher than state officials estimated in January, according to the Consensus Revenue Estimating Group.

The group’s October forecast attributes the increase to three primary factors: strong oil prices, higher than expected sales and use tax collections, and record investment income. CREG co-Chair Kevin Hibbard identified state sales tax income as the most unexpected component of the forecast. He noted that higher retail prices likely contributed to the surge in collections.

Hibbard explained that general fund compensation increases and supplies purchased for oil production also drove sales tax receipts upward. The state collected $34.1 million more in sales tax than originally estimated, a 4.9 percent increase. Investment income also reached a record high during the period.

Oil revenues offset declines in other energy sectors. Natural gas prices came in lower than expected, and uranium revenues dropped significantly. Hibbard cautioned that the strength in oil income may not be permanent. He linked current high prices to Operation Epic Fury and described the situation as a bubble. “You have to pump your brakes a little bit and be a little cautious, because a lot of that is attributed to Operation Epic Fury in oil prices,” Hibbard said.

Governor Mark Gordon and the state Legislature will use these revised projections to build the supplemental budget. Gordon is scheduled to present his budget proposal on Monday.