Repealing the school foundation program reserve account.
Summary
HB0293 repeals Wyoming’s school foundation program reserve account and redirects its money and future revenues into the common school permanent fund reserve account. The bill also makes conforming changes to related statutes governing severance tax distributions and school finance, including repealing provisions tied to the old reserve account and updating how funds are handled when they would otherwise have been credited to that account.
Under the bill, all existing money in the school foundation program reserve account is transferred by the state auditor to the common school permanent fund reserve account on the effective date. Any funds already appropriated or obligated from the repealed account must still be paid, but from the new reserve account instead. The bill also requires the state auditor to report to the joint appropriations committee by October 31, 2026 and again by October 31, 2027 on the amounts transferred.
Impact
The bill changes state law by eliminating a dedicated school finance reserve account and consolidating those balances and revenue streams into the common school permanent fund reserve account. It amends Wyoming statutes governing severance tax distributions and repeals provisions in W.S. 21-13-306.1, W.S. 39-14-801(m), and a 2024 session law section, while preserving payment of existing obligations and redirecting reversionary and accrued revenues to the new account. The practical effect is to alter how school-related reserve funds are held and administered, affecting the state auditor, the joint appropriations committee, and the flow of money supporting public education finance.
Sentiment
The available voting history suggests the bill was generally well received. It received a unanimous do-pass recommendation in the House Appropriations Committee and then passed the House on third reading by a wide margin, 53-7. No committee transcript is available, so there is no recorded debate to indicate broader opposition or support beyond the votes.
Contention
The main point of contention is likely the policy choice to abolish a school finance reserve account and move its balances into a different reserve structure, which can raise questions about fund segregation, flexibility, and future school funding stability. Any concerns would most likely come from lawmakers or stakeholders focused on maintaining a dedicated school foundation reserve versus those favoring consolidation and simplified fund management. The bill’s requirement that existing obligations still be paid from the new account and that the state auditor report transfers may have been intended to address administrative and fiscal concerns.