by Philip Baron, MBA
A draft bill sponsored by Rep. Harshman, R -- Casper, proposes that the Office of State Lands and Investments solicit proposals to maximize the value of school and state trust lands. The draft bill was discussed at the November 12, 2019 meeting of the Select Committee on Capital Financing and Investments.
The aim of this legislation is to solicit proposals for the development of school and state trust land in order to maximize the value of those lands. The Office of State Lands and Investments would collect proposals after August 1, 2020, that could include commercial, retail, industrial, recreational, and residential development on state and school trust lands.
In looking at the proposals, the Office of State Lands and Investments will look at the costs and sources of revenue needed to maintain any opportunities. They also will estimate the time required to develop the project, identify any necessary changes to Wyoming law, and identify any potential access to public lands for hunting and fishing.
They would then present those proposals to the Joint Appropriations Committee, the Select Committee on Capital Financing and Investments, and the Board of Land Commissioners no later than October 31, 2020.
Revenue from state and school trust lands are used to support several programs that are funded by the State of Wyoming. The largest beneficiary of trust land revenue is the Common School Fund. This account had net revenue in FY 2018 of about $150 million. Revenue from this account is part of the Permanent Land Funds and can then be appropriated by the legislature into the School Foundation Account1.
Public schools would benefit the most from more efficient use of state and school trust land. More efficient use of state lands to provide revenue to the state while increasing opportunities for business in the state is a great alternative to increasing taxes to raise the revenues.
The State of Wyoming is tasked with managing about 4.2 million acres of land that the Federal government granted to Wyoming is 1890 when it became a state.
According to the Office of state Land's and Investments website, they have two goals in managing the trust lands: 1) long-term growth in value and 2) optimum, sustainable revenue production.
This purposed legislation would help to maintain the goals of the trust by providing long term growth and sustainable revenue production.
These 4.2 million acres of land are used for many revenue-generating purposes, including easements for power lines, pipelines, leases for grazing and agricultural use, and wind and utility use such as cell or radio towers.
Looking for ways to increase revenue without raising taxes takes some effort and creativity to use the resources that the state has more efficiently. The efforts of the legislature to think of more ways to maintain revenue that are not tax increases should be applauded.
1 The School Foundation Account monies are distributed statewide to all school districts based on the block grant model.