By Noah Zahn
Wyoming Tribune Eagle
Via- Wyoming News  Exchange

CHEYENNE — After weeks of crafting a budget to fund state government for the next two years, Gov. Mark Gordon vetoed several portions of Wyoming lawmakers’ compromise proposal.

Following transmission of his veto letter late Thursday night, the House and Senate met separately on Friday to vote on possible overrides of Gordon’s vetoes. Overrides require a two-thirds majority vote in each chamber, and four out of the seven proposals approved by the Senate passed in the House to restore those sections of the spending plan.

While approving most of the 2027-28 biennium budget, Gordon took issue with how the Legislature approached the constitutional role of the legislative branch and funding for items like the University of Wyoming, state employees and the Wyoming Business Council.

The governor praised lawmakers for delivering a budget that aligns with a large portion of his original $11.1 billion in funding recommendations, but his vetoes targeted what he described as a decades-long trend of the Legislature attempting to “micromanage” the executive branch.

In his formal veto message to Senate President Bo Biteman, R-Ranchester, and House Speaker Chip Neiman, R-Hulett, Gordon emphasized that while the Legislature holds the “power of the purse,” it has recently crossed a line by attempting to direct how state agencies manage their personnel.

“It is not the role (though it may be an understandable temptation) of the Legislature to attempt to assume the extent of executive functions, such as deciding how many positions, the level of individual pay, or the classification of specific employees,” Gordon wrote.

Although the Legislature restored Gordon’s request to increase state employee pay, the most sweeping set of vetoes concerned a section where the Legislature attempted to set rigid tables for the number and status of state employees. Gordon argued that this language violated the separation of powers outlined in Article 2, Section 1 of the Wyoming Constitution.

By striking these tables, Gordon said he intended to ensure that executive agencies can “determine the number and duties of their employees within the confines of the amount of funds appropriated.”

This marked a departure from Gordon’s initial budget proposal submitted in November. 

While Gordon’s initial plan sought to maintain a lean government, the version passed by the Legislature included what he termed “creeping legislative overreach language” that sought to bypass constitutional limits by embedding management directives inside an appropriations bill. 

However, lawmakers ultimately voted to override this veto. This restores the Legislature’s authority to set exact employee counts for state agencies in the budget. Rep. John Bear, R-Gillette, urged his colleagues to support the measure, noting that the body has authorized employee numbers in this way for decades.

The chambers also voted to override two vetoes of items designed to prevent agencies from transferring funds into payroll without legislative approval and to cap future salary increases. Bear noted that the governor has vetoed the transfer restriction six times in the last seven budgets, but the Legislature has consistently overridden it to maintain oversight of state spending.

University of Wyoming

The University of Wyoming became a central battlefield in the budget process. 

Gordon’s initial budget had requested a $40 million block grant for the school. Before and during the session, which began Feb. 9, members of the Wyoming Freedom Caucus on the Joint Appropriations Committee sought to revoke the entire grant, eventually compromising on a $30 million immediate allocation with $10 million held back.

However, the Legislature attached some strings to this funding, requiring UW to submit an operational plan that reviewed its structure for potential degree eliminations and restrictions on diversity, equity and inclusion programming following an internal audit.

Gordon used his line-item veto power to strike a footnote that mandated this plan. He argued that requiring a “predetermined outcome” for such a study was counterproductive.

“The legislature, in requiring a predetermined outcome, lessens the value of a study potentially stepping over dollars to pick up nickels and dimes,” Gordon noted in his veto message.

He also vetoed a footnote that restricted the university’s ability to use state general fund money for Name, Image and Likeness (commonly known as NIL) payments for student-athletes, arguing that the university needs the freedom to adapt to a rapidly changing collegiate athletics landscape.

Two proposed overrides affecting UW fell short. 

An attempt to override the veto of an item that would have mandated an outside consultant for a university audit failed 34-26 in the House after some members questioned if the language was duplicative. Another that sought to reinstate a requirement for the university to identify $5 million in savings to unlock $10 million in funding also failed 34-26 in the House.

The governor also moved to protect the Wyoming Business Council, which saw its funding slashed by the Legislature from his recommended $55 million down to roughly $12 million to $14 million. The Legislature had also set a contraction date for the WBC of June 30, 2026. Gordon vetoed this date, explaining that while he agreed reform was necessary, the WBC needed more time to “finish existing projects” and avoid an “abrupt end to state support for economic development.”

Additionally, he struck the word “forensic” from an audit required of the WBC, noting there had been no allegations of misconduct, and a programmatic audit was more appropriate.

“I was disheartened by the message broadcast around the country that Wyoming was closed for business when the legislature drastically cut the Wyoming Business Council,” he wrote, adding that he prefers a more “constructive” approach.

The House failed to muster the required two-thirds majority for the override that had been approved by the Senate regarding Gordon’s veto for the WBC. The proposal was to de-appropriate $54.9 million from the Wyoming Business Council to offset the general fund. Rep. Scott Smith, R-Lingle, argued the sweep was necessary to prevent the general fund from dropping below statutory minimums.

However, critics like Rep. Art Washut, R-Casper, expressed concern that the move would bind the state’s hands during an economic boom, and Rep. Steve Harshman, R-Casper, warned against missing opportunities for data centers and natural gas projects. The override failed with a vote of 41-19 in the House, maintaining the governor’s veto.

Lawmakers successfully overrode a veto regarding the Department of Education. This item requires the reclassification of the Charter School Authorizing Board’s executive director upon the next vacancy to align the role’s pay with similar executive positions. Rep. Lloyd Larsen, R-Lander, explained that a previous director was paid significantly more than peers, causing organizational friction.

Gordon also struck down several reporting requirements. One such veto removed a requirement that the attorney general report all proposed water litigation expenditures 10 days in advance. He characterized this as “unrealistic” and an impediment to the attorney general’s authority, noting that the executive branch must be able to respond quickly to emerging legal needs without implied legislative pre-approval.

The final budget is a three-way negotiation between the governor’s plan, the conservative House version and the Senate’s more restorative position. 

While Gordon wrote that he was “saddened” by the elimination of certain items, such as the SUN Bucks summer food program for children, he ultimately praised the Legislature for delivering a “constitutionally sound” budget that keeps the state’s standard budget growth closely aligned with inflation.

With the debates concluded, the budget now becomes law with the four successful Senate and House overrides incorporated. 

The 2027-28 biennium begins on July 1 of this year.

Lawmakers are set to return to the Capitol on Wednesday to consider additional overrides of vetoes to other legislation from this year’s session. Gordon has until Tuesday to announce which bills he intends to veto.