• Valeria Fugate

Lawmakers look at the budget and gold on the 23rd day of legislation

Cheyenne, Wyo. - On the 23rd day of legislation lawmakers looked at the budget and gold. 

On Thursday, the House Appropriations Committee looked at SF-96, the Wyoming Gold Act.  

Lawmakers resurrected this bill from 2 years ago that would call for the state treasurer to pull $10 Million from the reserves to buy gold and place it in a permanent mineral trust to stabilize, diversify and protect the states' investments against inflation. 

"Gold is a strategic asset and its an insurance policy against uncertain times. Which were n right now with close to 2 trillion deficit spending going on as far as the eye can see. And this is a way to ensure against that. So I think its a very prudent thing. A lot of other states a lot of foreign central banks they are doing the exact same thing. They can see their currency aren't backed with anything. If history repeats itself every fiat currency goes to its intrinsic value which is zero," says Sen. Bill Ide, Senate District 29.

They would also conduct an interim study to find ways the state could accept gold and silver as a payment method.  

"We'll own a little bit of gold in our investments just to make sure that we've got that protection against the fiat currency that is the dollar bill today. We think that if its good for us, its probably good for the state to do that same," says Rep. John Bear, House District 31.

The bill passed.  

Next, I talked with our Wyoming State Treasurer about the budget and Wyoming's financial stance.  

"Conservatives this year I think have authored more bills than in the history of Wyoming," says Curtis Meier, State Treasurer.

Curtis Meier says we started the session with $1.8- $1.9 billion in the legislative stabilization reserve account or rainy day fund. 

It's down to $1.2 Billion now; the state is also going to restock that with a $369 Million budget balance by liquidating some investments in March.  

Meier's biggest fiscal note is on the newest tax relief bills, with the brunt of cuts falling on small counties.

Meier tells me instead that he wishes lawmakers would focus on each county tax percent increase rather than a flat rate across the board.

This tweak would lessen the severe backfill need for budget revenue and first responders, ultimately saving jobs and community resources.   

"You can do that by decreasing the increase and that means that the increase goes down but you don't get into the meat of what the critical things that counties and political subdivisions have to provide," says Meier.   

Further, Meier denotes the wonders of compound interest, especially regarding the Wyoming Generational Investment account. (HB107) 

This bill would create an investment account, specifying the investment earnings, and requires transfers of funds. 

So beginning on July 1, 2025, and each July 1 after, the state auditor would transfer $100,000,000 (one hundred million) from the rainy day fund to this new account.

This money would then be invested and grow to 10 percent in compound interest over 30 years.

Providing a cushion for state expenditures to cover any losses of shortfall year or even invest in a sector or project that officials may not outline in yearly budgets.  

"We can take $3 Billion over 30 years, that will give us the same return as if we had a stand alone fund, $26.7 Billion. So from my perspective I'd rather make the same amount of money off of $3 Billion, then having to raise a fund that big. So we're trying to explain here to the folks on the floor, and in the committees. Compounded interest is the 8th wonder of the world, that's what Einstein said and people say to surround yourself with the most intelligent people that you can to give you advise," says Meier.

Officials say that if we continue to invest properly, Wyoming's future will be very bright. 

Lawmakers look at the budget and gold on the 23rd day of legislation