By Noah Zahn
Wyoming Tribune Eagle
Via- Wyoming News Exchange

CHEYENNE — With the future of the Wyoming Business Council still uncertain, lawmakers met Friday to continue discussions on how to handle the statewide economic development agency.

During the meeting, members of the Wyoming Legislature’s Joint Minerals, Business and Economic Development Committee discussed the concerns of some lawmakers who see the WBC as a waste of taxpayer money and a government overreach, while others see it as an essential partner for growth in the state.

Earlier this year, a Wyoming Freedom Caucus-led effort in the Joint Appropriations Committee nearly defunded the agency entirely, eventually slashing its biennial budget from a recommended $54.6 million to just $15 million — just enough to maintain operations while the Legislature contemplates permanent reform.

Critics have argued the WBC picks winners and losers in the free market and manages a confusing web of more than 93 pages of state mandates that have accumulated since its inception in 1998.

During the meeting, the committee reviewed a research report from the Legislative Service Office comparing Wyoming’s structure to neighboring states. The report revealed that while every neighboring state maintains a dedicated economic development entity, their structures vary between executive-led offices and separate agencies.

WBC CEO Josh Dorrell defended the agency by highlighting the economic pressures facing Wyoming families. Presenting data on stagnant household income versus soaring inflation, Dorrell argued that economic development is the only path to prosperity.

“Median household income has stayed relatively flat while the cost that our families endure is much higher,” Dorrell told the committee. “…What if our income climbed faster than those things? That would be prosperity … that would be margin.”

He provided data showing that for every dollar the state invests through programs like the Wyoming Venture Capital Fund, the private sector has responded with significantly higher commitments.

“The state has put in … about $40 million to $50 million. And what has returned is the private side of the world has invested about a quarter of a billion dollars,” Dorrell said, urging lawmakers to consider if the state is willing to invest in itself.

Some committee members remained skeptical of the WBC’s approach. Rep. Martha Lawley, R-Worland, expressed frustration on behalf of her constituents.

“The answer that I’ve gotten from [my local economic development people] … is we haven’t gotten any leads from Wyoming Business Council for years,” Lawley said. “… Without leads, [business development projects] just kind of go into a drawer.”

Drafting a bill

A major portion of the meeting was dedicated to discussing a bill draft for consideration early next year that would codify and fund a Consensus Block Grant program. This program, which has not been funded since 2014, would bypass the WBC’s competitive grant processes and instead distribute infrastructure dollars directly to counties and municipalities that reach a local consensus on their priorities.

Jerimiah Rieman, executive director of the Wyoming County Commissioners Association, testified that local communities are struggling with antiquated wastewater systems and crumbling roads.

“Infrastructure remains one of the most significant barriers to economic growth,” Rieman said, noting that state programs should support local capacity, rather than replace local decision-making.

Lawmakers debated how to balance this new local control with the WBC’s existing Business Ready Communities program. Co-Chairman Rep. Scott Heiner, R-Green River, proposed an aggressive start for the consensus program, which he termed a “booster rocket” for local infrastructure.

“Wouldn’t it be in our best interest to start off a little bigger and maybe do $200 million for the first biennium to get things kicked off so that these communities can get started with some of the infrastructure needs they have today?” Heiner asked. Rieman said this would be an “incredible boost.”

Public comment highlighted the state of Wyoming’s rural areas. Beth Blackwell, grants and loans manager for Newcastle, testified that the cost to replace water lines has tripled in some areas since 2020.

“Water systems have been managed much better than our sewer systems … we’re going to have $10 billion to $20 billion worth of infrastructure for just those systems,” she warned, arguing that the consensus grant is an invaluable tool for small towns to address problems before they become emergencies.

The committee made several key decisions to advance these reform efforts:

• The committee moved to increase the proposed funding for the countywide Consensus Block Grant program to $100 million per year for the first two years, followed by $50 million annually thereafter.
• Lawmakers changed the consensus requirement from 70% of a county’s incorporated population to a simpler model requiring the county plus 50% of its municipalities to agree.
• The committee directed LSO to draft a new bill implementing roughly 15 agency recommendations to eliminate or tweak underutilized WBC programs, such as the Workforce Housing and Large Project Loan statutes.
• An amendment was passed to revert approximately $1.6 million in unused funds from old projects back into the new consensus fund.

Control of WBC funds

There also was a debate about which agency should oversee these local grants provided by the WBC. Some lawmakers, led by Sen. Chris Rothfuss, D-Laramie, questioned why a political body like the State Loan and Investment Board needs to approve grants that are already decided by local consensus.

He argued for a simpler model.

“I would much prefer for it to be a distribution out based on a criteria set that says, ‘Yes, you’ve checked your boxes, here’s your money.’ It’s already political, let’s not make it more political,” he said.

Meanwhile, the WBC Board of Directors is considering its own governance reforms. 

A WBC committee has proposed designating the WBC Board, rather than SLIB, as the final funding authority for Business Ready Community grants to move with the speed of business. The WBC board is expected to take formal action on these internal reforms at its September meeting in Gillette.

The Minerals Committee will table the consensus grant bill until August, sharing its amended draft with the Joint Appropriations Committee in the meantime. This is intended to prevent dueling pieces of legislation, and an attempt at a unified approach to the WBC’s budget and statutory duties.

When the committee meets in August, it will consider the final draft of the WBC’s statutory overhaul and meet jointly with the JAC to decide which programs the state will continue to support and which will be left behind.

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