Cash-based Budgeting: A Transparent, Stable Approach to State Budgeting

In Wyoming, we don’t forget where public money comes from. It comes from the people who work hard. The folks who get up early, stay late, and do the jobs that keep this state moving. Those dollars come from families, workers, and businesses who expect their government to treat public money with the same discipline and respect they use at their own kitchen tables.

As Governor, I will keep our budgets lean, efficient, and honest. That means we budget and spend what we actually have, not what we hope for. 

Families and small businesses plan within their means. They make decisions based on the income they can count on, not uncertain projections. Wyoming’s government should operate with that same discipline by grounding its budget with real dollars that are in the bank.

Our current budgeting process is based on what we hope to collect. The Consensus Revenue Estimating Group (CREG) analyzes trends and estimates what we expect the state to receive in tax dollars. The Governor then proposes a budget, and the legislature makes its adjustments. Both use the CREG’s work product. 

While the CREG is diligent in its approach and conservative with its estimates, we can strengthen the state budgeting process by gradually building one to two years of cash reserves so the state’s budget is supported by money we already have. This approach is “cash-based budgeting.”

When the government builds a budget on projections, we risk overcommitting in boom years and scrambling when revenues drop. A cash-based approach avoids those swings by ensuring every expense is backed by a real dollar, instead of shifting forecasts.

Whether it is state or local governments, this is the kind of enhanced fiscal discipline and transparency people deserve from their government. Wyomingites want to know their money is spent responsibly, whether it comes from a sales tax receipt or earnings from our Permanent Mineral Trust Fund. Cash-based budgeting provides a clear guardrail against overspending by ensuring essential services are funded first and that any surplus is carefully evaluated for long-term need and sustainability.

Depending on the year, between 40 and 50 percent of Wyoming’s budget is funded by mineral and energy revenues, and those revenues can change quickly when markets shift. Another 20 to 30 percent is generated from investment income, which is also dependent on unpredictable markets. A cash-based system helps smooth out the highs and lows, allowing the state to save in strong years and maintain essential services during lean ones. Wyoming’s core industries will always rise and fall, but that doesn’t mean our budgeting should.