LEGISLATIVE UPDATE 2011 GENERAL SESSION
DEATH (BUT IT’S GETTING BETTER) OF A BILL • Manufacturing exemption died in committee • Simple roll call issue • No real debate other than on exemptions as a whole • Previous concern over large users • Use for a recruitment tool, not for existing companies
MANUFACTURING – CHEYENNE REFINARY Capital Investments: $ 77,065.654 Salaries and Benefits $ 33,250,750 Energy and Utilities 17,576,526 Other expense (excl tax and depr) 60,803,802 Refinery Expense $114,357,543 Property Tax: $ 1,808,068 Use Tax 485,389 Fuel Tax 14,077,614 Sales Tax 996,602 Total Wyoming Taxes $ 17,367,672
MANUFACTURING – CHEYENNE REFINARY • We ESTIMATE the amount of sales tax that Frontier Refining has not paid to the State of Wyoming due to the manufacturing exemption is $2,600,000. This number could vary depending on how much was spent on maintenance VS investment. This estimate is based on a 56% capital investment ratio for plant and equipment. Actual numbers are collected by the Dept. of Revenue, but are confidential and not available to WEDA.
MANUFACTURING • Wyoming lost 1,317 industrial jobs and 92 manufacturers between September 2008 and September 2010 — the first loss MNI has logged for the state after reporting an increase of 10.6 percent between September 2005 and September 2008. • Industrial machinery and equipment saw a decline of 6.4 percent. Industrial machinery and equipment currently account for 3,699 of Wyoming's industrial jobs.
JOINT REVENUE • John Hines R S23 Chairman • Paul Barnard R S15 • Cale Case R S25 • Fred Emerich R S05 • Drew Perkins R S29 HousePat Childers R H50 Chairman • Gregg Blikre R H53 • Rita Campbell R H34 • W. Patrick Goggles D H33 • Michael Madden R H40 • David Miller R H55 • Owen Petersen R H19 • Mark Semlek R H01 • Clarence Vranish R H49
FOCUS ON REVENUE • All (or a majority) of WEDA issues will end up in front the Revenue Committee
BONDING INCREASESF0024 • Increase Treasurer bonding authority from $100M to $600M • Increase focused on a project somewhere in the Western part of the State • Treasurer looking at bonds without the requirement of security enhancement • Excellent recruiting tool and weeds out marginal companies
BONDING INCREASESF0024 • WEDA recommendation to increase to $700,000,000 • Extend sunset to 2016 to avoid budget cycle
DATA CENTER EXEMPTION • Combines software into hardware exemption • Will hopefully allow for colocation • Tiered approach – for “Mega” projects exempts: • First 3 years of electricity • UPS • Back up power generation • HVAC
DATA COLLECTION – SF0009 • Provide funding for data analyzing • Third party data collection • Answer specific legislative questions • Increase WEDA credibility among legislators • Provide much needed service • Could be used to provide analysis on legislative issues.
DATA COLLECTION – SF0009 • Collect, compile, analyze and distribute county economic data • Very beneficial for counties with large public land holdings
TO DO LIST 1 TALK TO LEGISLATORS 2 TALK TO LEGISLATORS FRIENDS 3 TALK TO LEGISLATORS PETS 4 EMAIL LEGISLATORS 5 CALL LEGISLATORS 6 SEND SMOKE SIGNALS TO LEGISLATORS 7 FOCUS ON REVENUE