Wyoming General Fund to reach $846.9 Million in 2006
Revenue estimates for fiscal year 2005-2006
October 16, 2005
According to the Consensus Revenue Estimating Group, the entity responsible for estimating all revenues received by the Wyoming State Government, the total General Fund revenue for fiscal year 2006 is estimated to reach $846.9 million dollars. This represents an increase of $90.9 million over the level forecasted in January 2005 and is $13.0 million higher than the year-end actual total attained in FY 2005.
The total General Fund share of severance tax revenue for FY 2006 is forecasted to reach $224.7 million, up $36.0 million, or 19.1 percent, from the level forecasted in January 2005. Actual FY 2005 severance tax receipts to the General Fund, of $225.3 million, were $30.6 million higher than forecasted last January, and $40.9 million above the previous year’s total.
Receipts in both the mining and retail sectors exceeded expected levels throughout much of FY 2005 fueled by robust mineral activity and related consumer spending.
The principal reason for the deviation from the January forecast was higher than anticipated prices for natural gas. Natural gas prices are expected to remain high in the near-term but then moderate as production is restored in the Gulf region. Additionally, sky rocketing oil and improved coal prices have contributed to the increase of severance taxes.
The federal mineral royalty forecast is based on the same price and production assumptions used for the severance tax projections. October, 2005 projections for federal mineral royalties for fiscal year 2005-06 is forecast to be $1,825.5 million. Royalty rates of 12.5 percent are assumed on all minerals produced on federal lands. As a result of increased prices and production expected in natural gas, oil, and coal produced on federal lands within Wyoming, federal mineral royalties (excluding coal lease bonuses) are projected to be $223.5 million higher in FY 2006, $139.7 million higher in FY 2007, and roughly $102.0 million higher in FY 2008-10 than projected in the January 2005 report.
Related Links:
October 2005 CREG Revenue Forecast Concensus Revenue Estimating Group - Wyoming State Government
Wyoming State Government Revenue Forecast - Fiscal Year 2006–Fiscal Year 2010
Concensus Revenue Estimating Group
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