Global Warming

  

Having just returned from the National Council of State Legislature’s Annual Meeting, where we heard a plethora of speakers around climate change, and the dire consequences of global warming, the one thing I found sadly missing was a healthy dose of good, old-fashioned skepticism. The Constitution that our free society is founded upon couldn’t be ratified until the Bill of Rights guaranteeing those freedoms was included. It is worth reminding ourselves that we owe as much to skepticism, as we do to patriotism and loyalty.

 

I believe that it is the height of human arrogance to think that we can do anything that would change the temperature of the Earth more than a degree, or two…and even that would require bankrupting our economy, would take decades to accomplish, and would be completely futile if there is the slightest change in the activity of the sun. Activity of the sun is something that, excuse me, even those with a direct digital connection to the ear of God can do nothing about.

 

In Wyoming, we are the number one producer of coal; somewhere in the neighborhood of fifth in the nation when it comes to producing natural gas, we’ve got coal bed methane, and plenty of crude oil, plus trona and uranium…not to mention world class wind power prospects—but the biggest contributor to “greenhouse gas” is none of these—it is the geothermal processes active in Yellowstone National Park! Why, I ask, would we be seriously contemplating spending billions and billions of dollars, which can do nothing except raise the cost of energy to unsustainable levels that will disproportionately harm the weakest and most vulnerable populations the most—when one good volcano, or one minuscule change in solar activity—can completely eradicate any measly human change? What we are facing here is nothing short of the most catastrophic, and tragic human folly ever contemplated in the history of the Earth.

 

Back in the 1980’s some scientists started predicting huge jumps in temperature, polar ice melting away, seas surging across land, famine on an epidemic scale, and ecosystem collapse. All of these predictions have turned out to be untenable. It is accepted now that global temperature has risen by 0.5° C in the last 100 years. Yet, during the last 50 years the temperature has risen at the same level, even though 70% of the man-made carbon contribution was injected into the atmosphere during this time. Even the Intergovernmental Panel on Climate Change (IPCC) has had to admit, in the face of overwhelming evidence, that sea level has risen by a mere 18 cm in the last 100 years—and that even that is more likely due to natural causes—not humankind’s contribution to greenhouse gases. Polar ice caps—predicted to have a warming of several degrees Celsius—are experiencing the opposite. According to the World Glacier Monitoring Network in Zurich—55% of glaciers in high latitudes are advancing, compared with 5% around 1950. It has become perfectly obvious to many scientists, and consequently to those of us who take the time to find out what they are learning, rather than depending on over-hyped media reports for our information—that climate change, simply, cannot be predicted.

 

If you go to Wikipedia’s page on Climate Change, you can follow the links to a page where you will find a list of scientists, (http://en.wikipedia.org/wiki/List_of_scientists_opposing_the_mainstream_scientific_assessment_of_global_warming), who believe that: global warming is not occurring or has ceased; believe that the accuracy of IPCC climate projections is inadequate; believe global warming is primarily caused by natural processes; believe that the cause of global warming is unknown; or finally believe that global warming will actually benefit, rather than harm human society.

 

For instance, Tad Murty, oceanographer, adjunct professor, Departments of Civil Engineering and Earth Sciences, University of Ottawa, says global warming “is the biggest scientific hoax being perpetrated on humanity. There is no global warming due to human anthropogenic activities. The atmosphere hasn’t changed much in 280 million years, and there have always been cycles of warming and cooling. The Cretaceous period was the warmest on earth. You could have grown tomatoes at the North Pole.” Craig Idso, faculty researcher, Office of Climatology, Arizona State University and founder of the Center for the Study of Carbon Dioxide and Global Change, has said that “the rising CO2 content of the air should boost global plant productivity dramatically, enabling humanity to increase food, fiber and timber production and thereby continue to feed, clothe, and provide shelter for their still-increasing numbers…this atmospheric CO2-derived blessing is as sure as death and taxes.”  Fred Singer, Professor emeritus of Environmental Sciences at the University of Virginia, says “The greenhouse effect is real. However, the effect is minute, insignificant, and very difficult to detect. It’s not automatically true that warming is bad, I happen to believe that warming is good, and so do many economists.”

 

These are but three of many scientific voices casting much doubt on a conversation that is not over—in spite of Al Gore. While we have absolutely zero power over the tectonic forces of the Earth, or the activity of the Sun—what we do have power over is our ability as human beings to adapt to the climatic changes that will inevitably come. While we do not know what those changes will be, we know that there will be change—there always has been, there always will be. That is where we should be focusing our efforts to mitigate the damage, and take advantage of the opportunities.

 

We should be spending our public dollars where we do have a chance of making a real difference in the lives of people living and breathing today…clean air, clean water, sensible environmental changes addressing those activities that we can control…I’m all for it. Focusing on efficiency and conservation makes both perfect economic sense, and environmental sense. Encouraging innovation makes good sense. These are all sensible things that I believe both global warming skeptics, like myself, and global warming disciples—can, and should get behind and support.

 

 

 

Proposing a New Standing Committee for the Wyoming Legislature – Technology, Reporting & Analytics

 The State of Wyoming is on the cusp of a new era in which we are perfectly positioned to take advantage of a number of opportunities. From the investment in the NCAR Supercomputer; the issues surrounding Carbon Capture and Sequestration and the new School of Energy Resources; to the value that could be realized from integrated governmental processes providing “one version of the truth” to the Wyoming Legislature and the citizens of Wyoming; many of these opportunities can be logically grouped under one heading: Technology, Reporting and Analytics.

Most of Wyoming’s governmental agencies, especially the larger ones, have a standing committee that they work closely with, other than the Joint Appropriations Committee, in terms of policy and direction. One glaring exception is the Department of Administration and Information with its half billion dollar budget, and links to virtually every nook and cranny of state government. Another agency which would logically interact with this standing committee, would be the Department of Audit.

While many of the agencies have spent millions of dollars on technology to improve and implement government systems to accomplish their mission, no one has oversight over the whole system. There is enormous value to be gained in terms of efficiency, transparency, and citizen access…not to mention millions, if not billions of taxpayer savings to be gained by the implementation of good, solid systems, standards, and  security. Chief amongst the technological challenges are the plethora of outdated and disparate legacy systems and interfaces, the lack of integration, and inefficient processes on all levels. What we need is a single view of the State, and a single view of the citizen through unified enterprise resource planning. We need to improve service, increase social responsibility, and improve operations with centralized defect reporting and incident tracking, integrated infrastructure maintenance and management, and online operating-budget preparation, not to mention enhanced governance and reduced fraud by enabling audit trails of transactions, cost transparency, and detailed exception reporting.  We need to realize value by integrating, streamlining, and reducing the cost of delivering equitable services.

Other governments around the world have realized enormous gains by taking these steps—for instance, the City of Cape Town, South Africa, consolidated a bunch of small towns into one unified entity, and implemented technology to support it, and in so doing added more than $105 million to their bottom line, increased their cash reserves by $115 million, and gained more than $100 million in additional savings and income—in their first year of operation! That is only one of many examples. Global corporations figure that every single paper form costs them hundreds of thousands of dollars by the time someone produces the form, vets it and gets it approved, distributes it to the end users where it is filled out manually, submitted, approved, processed and filed, and then somebody has to be responsible for storage, and access, and being able to retrieve it when necessary—it is easy to see where technological advances, and solid, integrated systems can produce enormous value in any large scale system.  This cannot be achieved without dedicated oversight, and a multi-year approach.

Finally, as the most part-time of part-time citizen Legislatures, we are hampered by the lack of time, and resources, when it comes to the effective audit of entire agencies. The current Management Audit process is only capable of looking at it program by program, not on an agency wide basis—which is the only way we’ll ever by able to get at those deep-seated systemic flaws in state government. Consistent, reliable, and timely reporting is absolutely essential to the proper analysis of any system…be it in government, or business. The only way to reach the ideal “one version of the truth” is to ensure that you have established the right metrics, and that all metrics are being measured in the same way throughout state government, and not only measured, but reported on a consistent basis. All of this cries for an integrated system that allows individual agencies the autonomy they need to maximize the technology dollars they have already invested, while integrating with other agencies, and other branches of government in terms of reporting and analytics.

There is currently a Select Committee on Legislative Technology charged with enhancing the Legislature’s computer, audio/video and website technology, which has never met since I was appointed to it, and that could  easily and logically be folded into this new standing committee. The current Select Management Audit responsibilities would also fit here. Besides providing oversight and direction to the Department of Administration and Information, there are other issues that could logically reside under this umbrella like Telecommunications, and of course, issues surrounding the State’s technological infrastructure, the NCAR Supercomputer, the establishment and regulation of Data Warehouses, and so forth. This would be a good committee to work with the Revenue Committee on issues like the Streamlined Sales Tax, and the technological issues around collecting sales tax on internet sales. It would be a good committee to work with the Agriculture Committee and/or the Select Water Committee on the technological issues around obtaining and analyzing good data having to do with water issues. Our state systems need to be able to access, and be able to allow for the assimilation and analysis of data from outside sources—from global positioning systems, to federal databases, to research and development systems. The list goes on and on, but the fact is in today’s government, business, and citizen environment, nearly every aspect has an underlying technological component.

For all of these reasons, a good argument can be made that it is time for the Wyoming Legislature to dedicate the time, resources, and people to a standing committee capable of gaining the expertise and holistic view necessary to guide and enhance the technological systems so necessary to Wyoming’s long-term prosperity.   

Economic Cost of Over Regulation

 

As a citizen and an elected official, I am increasingly aware of the costs to taxpayers, and to the economy, of regulation. It does not take a genius to figure out that the laws, rules, and regulations that have evolved in the recent past, contribute to a debilitating drag on our economy.

I am not advocating a radical revision of our system of governance. There are good reasons for many of the regulations. What I am saying, is that it is time that we, as a government, and as a people, take a comprehensive, holistic view of the bureaucratic universe…and start finding common sense ways to protect what needs protecting, and quit spending taxpayers’ money on that which does not. That we make sure to assess the true cost of regulations before we allow them to be put in place.

Let me give you a few examples:

Anybody can come to Wyoming, and with very little basis, demand that yet another species be added to the Endangered Species list. When they do this, the State of Wyoming is obligated to spend an enormous amount of money in time, personnel, and equipment to refute these claims…many of which ultimately wind up as frivolous and unmerited. Money that could be used elsewhere to greater advantage when it comes to protecting our precious natural environment.

Think of what all of the hoopla around the Sage Grouse is costing just in direct costs. Think of the lost revenue from oil and gas developments that have already been delayed, or completely eliminated, because of the uproar around this one example. Think of what that has cost our local economies.

It has become clear in working with coal bed methane projects on our ranch, that it is now nearly impossible for a family to work with a company to develop beneficial uses of the water because of short-sighted, poorly conceived, and inappropriate regulation.

I recently found out that every single stream in Wyoming is defaulted into a designation as a “primary” stream—meaning that it has flowing water suitable for swimming, fishing, and recreational boating. This is patently absurd in our semi-arid region. Far more practical, and far less expensive would be to simply change the default designation of all streams in Wyoming to “dry.” Stop spending the dollars to send personnel out to every little gulley and draw in the State—five different times to attempt to take water samples, take photographs, complete documentation, and file a ream of paperwork to establish that the default is not true. Anybody can access Google Earth, and can tell which draw runs water, without ever leaving their desk.

There is much talk about “affordable housing,” but very little discussion about how the plethora of rules, regulations, and requirements contributes to the high cost of housing. I have had developers tell me that they can build housing that the low middle income person can afford, but in order to do so they need the flexibility to build in greater density, to not have to put so much money into mandated infrastructure details like curbs and gutters, and other cost-saving devices. As cities, towns and counties come seeking more and more State dollars to provide workforce housing, I would encourage them to turn inward and take a long, hard look at their own zoning regulations and requirements, and see how much that is increasing the cost of building.

I have an elderly relative who owns several acres inside the city limits of Wheatland. They would like to sell it. But the town of Wheatland’s regulations prevent them from doing so without subdividing. So, what is the end result? They keep paying the taxes, because that is the easiest thing for them to do. As my relative says, “We’re old…we don’t want to go through all of that,” and any potential developer, and any potential family who could use the housing on that acreage, are out of luck. I doubt this is a problem found only in Wheatland. Every govenment could find examples of short-sighted, counter productive, and flat out expensive regulations on their books if they took a good, hard look.

My point is that there are many and various costs associated with over regulation. I encourage citizens and colleagues to look beneath the obvious, and to ferret out not only the direct cost of a regulation, but the wide-ranging ramifications, and the unintended consequences, and the opportunities stymied that all add up to a tremendous drain on our  resources.  We may have limited ability to do much about federal laws, but we ought to try to do what we can.

A Time for Reflection

 

The holiday season is upon us. Regardless of your religious persuasion, or complete and total lack thereof…the time between Thanksgiving and the New Year, marks a sort of wrapping up, and a hopeful eye to the future.

 

We have a lot to be grateful for in this nation, this state, and most particularly our own, individual places within the big schema. We have plenty of food, and shelter, and enough to share. I have heard it said, that Americans are the most generous people in the world, and I believe it.

 

Most of us feel very safe. We are concerned about those who are not. And we try to do what we can to make it safe for everyone. If we are the praying type, we are praying for our military men and women whose duty is to put themselves in harms way, to fight for our safety, security and freedom.

 

We tell our kids that the only things really necessary for a decent life are food, and a warm place to lie down. Beyond that, everything else is a luxury to be appreciated, and to not let the pursuit for more and more stuff take control of their lives, and to never let it get in the way of their most important relationships.

 

In a letter we wrote to our kids, we told them that Honesty is the most important thing—if they can preserve their integrity they will be able to withstand the most severe challenges that Life may bring.

 

In our opinion, the virtue that is right next to truthfulness in every aspect of life, is Kindness. Common courtesy and thoughtful consideration make for a pleasant way of being—make a body a joy to be around, every single day—and means they will always be surrounded by loving family and friends, and never be lonely for long. Take care of those around you, and you take care of yourself.

 

All of us, I think, are disturbed by the idea that the entire national economy hinges on how much we spend for Christmas. That is not what this season is about. I don’t care if you are a Christian, a Muslim, a Jew, a Pagan, a Buddhist, a Taoist, an Atheist, or an Agnostic, or any other of the many, and multi-faceted ways of spiritual being that there are in the world…spending money is not what it is about. Universally, what the season does represent, is a time to appreciate and honor our neighbors, family, friends, all of those we hold close and cherish. It is a time to help those in need. It is a time to express our gratitude to all of those who touch our lives in small, sometimes insignificant ways, that make things easier…like the UPS driver, and the grocery clerk, and many, many others.

 

Stay in touch. Our oldest friends and family are the most important to us as we grow older. Remember the power of Love.

 

Perhaps, more than anything else, this season reminds us that the big wheel of life, and the big mystery of Time, keeps traveling relentlessly onward. One year ends, and another approaches. We don’t know what that year ahead of us will bring. But we have Hope. Hope, the purest expression of what it means to be human, on this Earth.

 

My hope for all of you is that this holiday season finds you, and all of yours, safe, happy, and hopeful.

The National Animal Identification Fiasco

 

The U.S. Department of Agriculture (USDA) is currently in the process of implementing the National Animal Identification System (NAIS). NAIS is designed to identify all livestock animals and poultry and track them. When the program is fully implemented, the USDA expects that NAIS will be able to identify all premises on which the animals are located and all animals that have had direct contact with a disease of concern within 48 hours of discovery. The USDA is implementing the program without explicit Congressional authority or oversight.

The State of Wyoming is currently accepting federal grants to implement the “voluntary” program, and is already using subtle tricks like an innocuous looking premise registration on the back of every brand registration form, and coercing children to register their parent’s premises in order to participate in livestock events at county fairs. In order to head off this massive, and misguided federal bureaucratic power grab, legislation will be introduced at the upcoming legislative session which directs that the State shall not establish any voluntary or mandatory animal identification system other than our long-established livestock brand program, and that will prohibit state agencies from spending any appropriated funds to that end.

While there has not been much attention given to this issue, it has huge implications for every American, not just those involved in the livestock industry. The NAIS would apply to every person who owns even one livestock animal or poultry, including horses, chickens, cows, goats, sheep, swine, turkeys, and bison. Each person would be required to: 1.) register their property with the state; 2.) identify each animal with an internationally-unique 15 digit number; and 3.) track “events” and report them to a government accessible database within 24 hours. The sole purpose of this program is to provide 48-hour traceback of all animal movements in case of disease outbreak. Additionally, the government and industry organizations have urged the program as a means to improve the export market.

While the USDA states that the program is currently voluntary at the federal level, it has been providing fund to the States, including Wyoming, to implement the program. With the encouragement of this federal funding, several states have already implemented mandatory programs. Moreover, several States have registered individuals in the program without their consent, or by using coercive measures, while claiming that the program remains voluntary.

NAIS represents a massive intrusion into people’s lives, because individuals will have to provide detailed information about their property, businesses, and their own movements to government and private databases. There is a huge burden on property rights, because the premises registration number will attach to the land forever, and your right to manage your land and animals will be restricted. It will carry high costs—registration ,tagging, and reporting all carry costs in both time and money. We will lose small farmers and ranchers, many will be unable to afford the program, or unwilling to accept the government intrusion. There will be damage to our economy, because businesses that rely on small farmers such as sales barns, supply stores, and even tourism, will be harmed. It will reduce choices and increase costs for consumers. It is a violation of many American’s religious beliefs. Most notably of all, it greatly increases government bureaucracy and is a gigantic waste of taxpayer dollars.

Even though the USDA is advocating this program, it has not performed a cost analysis of the program. Costs for similar programs in other countries are estimated to range from $37 per head to $69 per head. With over a hundred million cattle and millions of other livestock animals in the US, the NAIS will likely cost producers, businesses, and taxpayers tens of billions of dollars.

The NAIS will not provide benefits to justify those costs. The stated purpose of the NAIS is to provide 48 hour traceback to address animal disease. But the NAIS does not address the critical issues for disease prevention and control such as the specific disease, including its cause, prevention, transmission, and treatment options. The proponents of NAIS also ignore the fact that government and industry have already established systems for tracking animals like the tried and true system of livestock brands that has been in place in Wyoming since territorial days.

Contrary to claims, the NAIS will not protect against bio-terrorism. Terrorists are unlikely to target hobby animal owners and small ranchers. Microchips are vulnerable to cloning and computer viruses. The type of microchip specifically recommended for horses and cattle, the ISO microchip, is designed to be reprogrammable, so anyone can easily change the numbers. The large databases will provide an easy target for hackers. Indeed, even without intentional tampering, the large databases will be unmanageable, as has already been found in Australia.

The final stated justification for the NAIS is to improve the export market. There are better ways to reach agreement with Japan and other foreign countries, including allowing meat packers who wish to export their beef to test for Mad Cow disease. If tracing is a market benefit, let the market implement it, not a mandatory government program using our tax dollars.  Any such program should be voluntary, non-coercive, allow for true competition, and paid for by the participants.   

I believe that the NAIS infringes upon the property and private affairs of individuals in direct violation of our Constitutional rights, including the right to due process of law, equal protection, religious freedom, and freedom from unreasonable search and seizure. I believe that the NAIS is likely to have serious, unintended consequences on everyone who owns even one animal, including small farms and ranches and thousands of private citizens who own animals for companionship, recreation, and subsistence. I believe that the NAIS could have a significant negative impact on the entire rural economy of the state and the country. If you agree that it is time to stop the implementation of NAIS in Wyoming, contact your legislators and ask them to support the legislation. If you would like to investigate further, I recommend the Farm and Ranch Freedom Alliance, and their website at www.farmandranchfreedom.org. As always, feel free to contact me about this, or any other issue, at 307-685-8248 or sue.wallis@vcn.com.

The Need for Educational Reform

The Need for Educational Reform 

Wyoming now spends more money, per student, than any other state in this nation…over $13,000 per student. We have spent over $1 Billion dollars on capitol construction. Our teachers start at $40,000. I list this, not because I think it is too much, but because I question whether we, as a society, are getting what we are paying for.

 

Only 76% of our students ever attain a high school degree of any sort, exactly the national average, and the lowest in the region. Two-thirds of those who do graduate, say that they aspire to some sort of post-secondary education, but only one-third of them are academically ready. Perhaps, most disturbing of all are the students who earn a degree, only to find that they need remedial classes to do college work!

 

An abundance of financial resources for mediocre to poor results is cheating our future citizens, and is not acceptable for parents, dedicated educators, employers, or taxpayers. What we have is a situation that demands radical change.

 

So, what do we do? The Educational System, writ large, is like changing the course of the proverbial Ship of State…only worse. If there was ever a megalithic, monolithic, entrenched, bureaucratic, immutable monster where everything is linked to everything else, and every good, bad, or indifferent idea is backed up by reams of “research based data,” fraught with fears of faddish innovations with disastrous consequences…this is it. What happens, as a result, is more of the same…only louder, and slower, and longer, and with more bells and whistles in more expensive surroundings.

 

One way to focus change is around the Three ‘R’s: Rigor, Relevance, and Relationships. High school graduation in Wyoming is based on 9 standards, and a diploma can be earned with proficiency in only 5. It is possible to graduate without knowing how to read, write, balance a checkbook, or determine fact. Proficiency in the core subjects: language arts; math; science; and social studies, should be required to receive a diploma.

 

For some students, traditional education has little relevance to their lives. Wyoming needs a skilled, educated workforce that knows how to use technology. Students who come out of today’s Career and Technical Education (CTE) courses are prepared for the world of work, and they consistently score higher on achievement exams in core subjects like English, math, and writing, then do their counterparts who go through traditional classrooms. It would be a mistake to make a knee-jerk reaction and focus only on the academic classrooms.

 

And, finally, relationships…as one passionate educator put it so succinctly, “the key is relationships.” When a group of drop outs were polled the top reasons they gave for leaving school were: 1) “I was bored;” and 2) “nobody cared whether I stayed.” The complicated truth includes dysfunctional families, substance abuse, and issues outside of school walls. Nonetheless, we can find better ways to organize schools so that every student has educators who know their strengths, their weaknesses, and who provide early intervention. It is no anomaly that the highest performing schools in the state, are also the smallest. Instead of consolidating schools, we ought to be breaking them up into smaller, more personal learning environments.

 

Finally, the key is choice. In a sparsely populated state with enormous distances this can be difficult, but we have the ability, and we have the resources, to provide meaningful choice if we leverage technology and innovation to do so. The monopoly of traditional public education must end. We need to encourage charter schools, magnet schools, private schools, home schools, and distance education programs. We need to build choice into public education enrollment policies. We need to get rid of road blocks to college dual enrollment, and advanced placement courses. Without choice, students and parents are forced to endure a system that in far too many cases, is failing miserably. It is said that a child can overcome one bad teacher, but if they wind up with bad teachers for two years in a row, they never recover. Without choice there are no consequences for a failing school, or a failing teacher—no incentive to make the drastic changes that are so desperately needed.

 

There is plenty of work that needs to be done. To assume that these are problems for the educational system, and that they, alone, will solve them, is no longer an option. For the good of our nation, our state, and our children, there is work for us all. Let’s do it.

 

The Hathaway Scholarship

A few years ago, when the State of Wyoming was literally swimming in more mineral generated money then they could responsibly spend, they did at least one very good thing—and that was to establish the Hathaway Scholarship. When the $400 Million dollar permanent trust fund is completely full, predicted to be around March of 2008, it will provide a perpetual amount sufficient to grant this scholarship from the income of the fund alone. Although, we are not the only state to have a merit scholarship of this type, we are the only state in the union to have a completely funded permanent trust to support the scholarship.

 

It is hugely appropriate that this scholarship be named after our beloved Governor, Stanley K. Hathaway, who was a World War II war hero, and a humble, but very effective leader, and governor from 1967 to 1975.. Hathaway participated in 35 successful missions over France and Germany, but his 401^st Heavy Bombardment Group suffered a high casualty rate. It is said that for years, after serving as a gunner in the Army Air Corp during the war, that he would relive the nightmares of those days in his dreams. My husband, a Vietnam veteran, experienced the same vicious cycle of nightmares for many, many years—and still has a bad night every once in awhile—nearly 40 years later. Our American Veterans Day should not be the only day in the year when we acknowledge and celebrate the sacrifices and commitment of our military men and women.

 

But the main reason that it is so fitting that this scholarship be named after Governor Hathaway, is because he was the leader who first implemented a mineral severance tax in Wyoming, and the leader who established the Permanent Mineral Trust Fund. In the lore of the State, it is said that when he took over the office, the State was flat broke, and going in the red, fast. He asked how much money was in the General Fund, and someone came in and said, “$89.00…Governor, what are we going to do?” Stan said, “the first thing we are going to do is stop writing checks.” After that, they went to work and figured out a way to keep the state on its feet.

 

That legacy is what has fueled the tremendous wealth of this state, which allowed for the possibility of such a scholarship to every Wyoming kid willing to put in the effort. While that legacy has been our savior many times over, and no doubt will be again, it is my fear that our nearly total dependence on mineral revenue, will also be the bane of our demise.

 

In regards to the Hathaway Scholarship, itself, the program is very new. Last year was the first year that scholarships were distributed. During the General Session in January and February, we passed a controversial “Success Curriculum,” including a very strong emphasis on math, science, English, and foreign language, that is now required of students if they want to get the scholarship. One of the problems is that it is almost totally focused on those students who are headed for a four-year degree at the University. Statistics point out that only 1 in 10 people ever complete a 4-year degree, and work in their chosen field after graduation. Wyoming desperately needs Career and Technical Education (CTE), but these are the programs and educators who are being cut statewide, in order to provide more of the academics.

 

What we need to do is keep the educational bureaucracy from smearing an overabundance of complicated rules and regulations, and tricky model-driven redistribution schemes, over the whole thing. It is designed and intended to help any deserving high school student, who has worked hard enough to earn decent grades, and who has studied hard enough to pass the ACT Tests with a good score, to attend a one, two, or four-year post-secondary institution without the added stress of figuring out how to pay for it all. We should keep it as simple as that. We need to provide incentives to do good work once you have earned a scholarship. We need to provide a way to regain the scholarship if you slip out of eligibility, for whatever reason. And we need to make sure that it truly does encourage students to gain the credentials for opportunities that are available right here in Wyoming—whether that be at a one-year certification/apprentice program, a two-year Associates Degree, or a four-year Baccalaureate degree.

 

My father, Dick Wallis, (who is, by the way, a Korean War veteran), spent many years working hard to better the education system in this State, both as a local school board member, and as a legislator. When talking about the potential of the Hathaway Scholarship, he had this brilliant advice for all of us:

 

“Keep it simple…and, make it fair.”

 

Property Taxes and Governmental Accountability

Property taxes come up in a lot of the conversations I have these days. On one hand, it is true that the citizens of Wyoming enjoy one of the least onerous taxing environments in the United States, mainly because we have figured out how to get somebody else to pay our bills for us—namely, the mineral industry. It is true that we pay an average of $3,300 a year in taxes, and receive something in the neighborhood of $33,000 in government services in return. Not a bad deal, some would say.

On the other hand, when you are looking at your property tax bill, and you see that the value of your residence, and consequently the taxes that you pay, have doubled, tripled, or even quadrupled…it is pretty easy to get up in arms. Then you look up, and see that the state, cities, towns, counties, and special districts are spending money like there is no end—megalithic capitol construction; gigantic infrastructure projects; programs of every imaginable style and ilk from low-income assistance, to mental and physical health services; recreation; beautification; economic development; fire suppression; water development; and more, and more, and more—all crying for more to feed the insatiable ‘essential’ needs. Where does it stop? And, how did this happen?

It happened partly because the system, as it stands, makes it almost automatic. The Wyoming Constitution addresses taxes in several sections. Firstly, it states that “No tax shall be imposed without the consent of the people or their authorized representatives.” Secondly, the constitution states that all property shall be uniformly valued at its full value. The constitution designates three classes: 1) the gross production of minerals and mine products in lieu of taxes on the land where produced, which are assessed at 100%; 2) property used for industrial purposes, assessed at 11.5%; and 3) all other property, real and personal, assessed at 9.5%. While the three classes are designated in the constitution, the percentages for each class are set by the legislature.

Herein, lies one part of the problem—the constitutional requirement to value all property at its full value. That means that if you are fortunate enough to live in a pretty place that is attractive to movie stars and millionaires, or in an area of booming economic expansion, or just next to a subdivision where people are moving in and developing nice homes—that the value of your property is going to inevitably ratchet up as the properties around you are bought and sold and built for higher and higher amounts. Say, for instance, that you are the typical Wyoming family with Mom, Dad, and a couple of kids living on an acreage with a good house that you bought some years ago for under $100,000. Since then, you’ve built a shop, put in some nice landscaping, made some other improvements, and have comfortably increased that value to $150,000, or even $175,000. Then, the big pasture next door gets sold to a developer who starts putting in multi-million dollar home sites—all of the sudden, your property is enormously more valuable—and you’ve got the tax bill to prove it that has exponentially exploded.

Some would say, “you lucky family, your net worth has just gone through the roof through no effort of your own…live it up.” That, however, is small consolation to a family struggling to make ends meet. What are they supposed to do? Sell it and go start over someplace else? How fair is that?

Now that we have taken a look at the individual end of the taxing spectrum, let’s move to the other end, and take a look at what happens on the governmental level. Taxes are always levied in mills, and one mill equals $.001 or 1/1000 of a dollar. In the Wyoming Constitution all taxes are addressed in terms of language that says a levy “shall not exceed” a certain number of mills. Currently, the mill levies for schools are statutorily set as “mandatory” at the maximum not to be exceeded in the constitution.

Here is a streamlined version of how the taxing system works from the government end. The County Assessor certifies the value of all property in the county every year. There are mechanisms in place whereby the State Board of Equalization makes sure that this is done properly. Budgets are developed by the various entities and submitted to the county commissioners, who then has the taxing authority to actually levy the mills necessary, up to the constitutional and statutory limits that are in place.

So, if the property valuation increases dramatically within a taxing district, the actual revenue garnered from the same mill levy results in substantially more income for the government. Currently, there is very little accountability, or even visibility, when this happens, and for elected officials it is apparently a lot more fun to spend money, then to give it back to the taxpayers by not taking it in the first place.

To address this specific problem I have asked the Legislative Service Office to draft legislation that would tie property tax valuation to the mill levies so that when the valuation goes up, the mill levies automatically come down, with a formula to account for inflation, so that the end result is essentially the same amount of actual dollars available to the government from one year to the next. The draft legislation also removes the mandatory language from the various school mills, so that they can be adjusted like every other property tax.

This legislation does not impede the ability of any taxing authority from setting mill levies, as they have always done, up to the limits, but it does bring the whole process out in the open—which makes it a much more transparent, and accountable process. Instead of a stealthy windfall to spend freely, your elected taxing authorities would now have to publicly take action to raise the mills from their adjusted amount, and in the process, would have to justify why they need the extra dollars.

Since it would work both ways, in that in a district where the valuation is dropping, the mill levies would be automatically adjusted upward, within the limits—this should be comforting to smaller, and more vulnerable districts, as it would provide a reliable, steady, amount of dollars to meet the budget from year to year.

Now, let’s take this back to our typical Wyoming family—what would this do for them? The end result would be that their property value has still increased to meet the constitutional requirement for full fair market value, but their tax bill has stayed level because the amount of mills that they are taxed on that value have been adjusted downward, and their local governments have been provided with the same revenue as they had in the previous year to supply the necessary services. Everybody wins.

As we prepare for the Wyoming Legislative Budget Session in February, I ask for your support with this initiative. If you would like to talk to me about this, or any other issue, please call me at 307-685-8248, or email at sue.wallis@vcn.com.

Send us a Responsible Budget!

As one of the most fiscally conservative members of the Wyoming House of Representatives, I am calling on like-minded citizens and taxpayers to sit up and pay attention. The old saying goes, “no one’s ranch is safe while the Legislature is in session,” and there is maybe a grain of truth in that. It is time to watch our pocketbooks, and hold governments accountable.

 

Budget season comes right along with hunting season in Wyoming. The agencies have submitted their budgets to the Governor. The Consensus Revenue Estimating Group (CREG) has just delivered their report, which tells us how much money is projected. The Governor is required to make his review and recommendations to the Legislature by December 1^st. Then the CREG report will be adjusted in January, if necessary, and the Budget Session will begin on February 11^th.

 

When the CREG report came out last Fall, it looked like the State was in for a windfall to end all windfalls…to the tune of $800 million extra dollars. A spending frenzy began.  Then natural gas prices started falling, and when the revised CREG report was issued, that $800 million had shrunk by $250 million to a mere $550 million. Mind you, that is still $550 million dollars more than was expected the previous year.

 

The Governor sent us a budget that spent every last red cent of that illusionary $800 million dollar surplus. When the January revised CREG came out, he had an opportunity to adjust what was now an over-inflated, and impossible budget.  For political reasons of his own, he took the easy way out and left it to the Legislature. That way he had ample opportunity to complain, loudly, and with as many microphones and cameras in the room as possible, that the Republican legislature was decimating the State budget.

 

Another common theme that we heard from the “tax and spend” crowd was that the foolhardy Legislature was refusing to divert money out of “savings” where it would only earn a pittance, at best, when there are all of these huge, and necessary, needs going unfunded.

 

My logic is different:  1) our minerals are a tremendous asset, and will remain an asset to the State while in the ground—but, we can’t spend them; 2) once those minerals become feasible to produce, someone will take the opportunity to do so, pay their taxes, and the State will have the revenue—and a choice.

 

One choice is to spend it on immediate needs, additional State employees, and big, expensive programs. That choice, while providing a modicum of instant gratification, inflates State government to the point that it will be impossible to maintain once the easy money is gone.

 

Another choice, a far better one that preserves our minerals-based assets for the future, is to invest it in safe, long-term securities that generate good income that we can guiltlessly spend. That way we can preserve the corpus as a permanent asset of the State forever.

 

State government is, in my opinion, way out of line with reality. In the 2005-2006 biennium alone, the budget increased fifty-seven (57%) percent! Even with a sobering January CREG report last year, we still, I am embarrassed to say, passed a “supplemental” budget that raised the 2007-2008 budget another forty-five (45%) percent. In just the last two biennium’s we have managed to jack the Budget from $1.5 Billion to $4 Billion Dollars!

 

Even more frightening is the knowledge that scientists throughout the world are looking for a way to make carbon-less energy. We may be only about four scientific breakthroughs away from human and financial disaster. This may be our last Boom.

 

We should live within our means, and lay the foundation for long-term—come Boom, or come Bust—security. Many of you feel the same way. This is a call to action. Let your voice and your good sense be heard. Tell the Governor to send us a realistic, and responsible Budget, one that provides what we need, and keeps the long view in mind. Tell your Legislators that it is time to stop diverting money from the Permanent Mineral Trust Fund, and that you expect them to spend the taxpayer’s money wisely. Hold your elected officials accountable.

 

It is the only way we’ll ever stop the hemorrhaging of our mineral heritage.