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HERITAGE BRIEF Volume 23 #3 December, 2003
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Wyoming Update
Leadership Wyoming Leadership Wyoming Class 2004 has held three sessions around Wyoming since September. These sessions had remarkable community and local business support. The Retreat, held in Jackson, was greatly assisted by the generous support of United BanCorporation of Wyoming, Inc.: Jackson State Bank and Trust, Sheridan State Ban and the Shoshone First Bank of Cody. The class of 40 next travelled to Gillette for the Natural Resources and the Environment session, followed by the Entrepreneurship and the Economy session in Lander/Riverton/Reservation. Applications for Class 2005 which begins August 5, 2004 are now available. The deadline to receive applications is Friday, April 16.
Steering Committee Meeting Each quarter, the Wyoming Business Alliance/Wyoming Heritage Foundation the 58 member Steering Committee meets to discuss issues relating to the State’s economy. The following summarizes the most recent meeting held on November 20, 2003 at the Parkway Plaza in Casper. Key Reports (in order of appearance) Transmission Authority – Bob Tarantola, Pacific Power The energy crisis of 2000 and 2001 caused a lot of concern in the electric industry. Wyoming, as the largest coal processor and a significant generator of electricity, is in a unique position regarding transmission. The question is who will pay for the new transmission capacity. The legislature’s Corporation Committee has an Electric Transmission Authority bill which would authorize $1 billion in bonds to build transmission lines. The effort would be similar to the Natural Gas Pipeline Authority…where buyers would step forward to purchase (build) capacity in the new open market (versus in years past why a power company would build the power plant and transmission lines to generate and sell power to its customers). The importance of this is outlined in the enclosed White Paper. WBA Position: Support Wyoming Transmission Authority Bill. Togowotee Pass – Paula McCormick, Lander Construction for over a 7-14 year period is slated for Highway 26/287, Fremont County’s economic artery for commercial and tourist traffic. This will take place during the prime summer travel season on a vital road which links West Central Wyoming to Yellowstone and Grand Teton National parks, as well as to Northwest Wyoming, Idaho and Western Montana economies. Major concerns include: · After $82 million in road improvements, the speed limit will be reduced from 65mph to 55mph. · The failure by the Wyoming Department of Transportation to quantify socio-economic impacts during the 7-14 year construction period.
The Fremont County Togowotee Road Construction Coalition recommends: an independent socio-economic analysis; construction options to shorten the total construction period; development of mitigation plans to address traffic flows; quantify dollars needed to implement on aggressive marketing and communications plan; and have a paid representative to work with construction companies, WyDOT and National Forest representation. WBA Position: Support concerns expressed by Togowotee Road Construction Coalition. Wyoming Business Council – Tucker Fagan, President and CEO, Cheyenne The standard budget of the Wyoming Business Council is $23.7 million and will be adjusted upward for health insurance and other inflation items. Exception budget adds $3.1 million - - but not a large increase - - $5 million to $10 million - - as suggested by Steering Committee member Fred Parady, Speaker of the House. Areas of opportunity for Wyoming economic programs include: niche international marketing, elimination of the manufacturing sales and use tax, small manufacturing, Business Ready Communities and commercial air service. According to steering Committee members Fred Parady and Peter Wold failure to take advantage of international business in China and the Orient would be a missed opportunity for Wyoming…and the other states have presence/international trade groups which also have ties to tourism. WBA Position: Support manufacturing sales and use tax abatement (January 2003), Business Ready Communities (February 2003) and enhanced commmercial air service (August 2002). Pat Pitet outlined progress regarding the enhanced airline service bill. The Business Council has had discussions with United, Great Lakes, Rocky Mountain Airways, Mesa and Southwest. The state’s appropriation is for minimum revenue guarantees for an interim period, not long term. Long term Wyoming communities and cities have to support the air service they want…better fares and schedules and larger aircraft. Responses to the state’s RFP are due December 14. Discussion included whether air service should be viewed as a public good like highways and the University of Wyoming’s study which looked at leakage and state assistance over wedge fares (what people are willing to pay to get to a major hub) over a five year period to improve state air service. Wyoming Health Care Commission - Diane Harrup, Executive Director, Douglas The Health Care Commission came into its efforts understanding there are many challenges and unclear expectations as to solutions. The Commission has approved nine recommendations for the Joint Interim Labor Health and Social Services committees’ consideration. These include such items as:
Overall health care negatives are like air service. Every community wants high end tech stuff, yet can’t because of affordability. Wyoming today is looking for 75 physicians and there are 135 nurse openings. Malpractice insurance rates increased 25% - 50% last year…and hospitals are having to subsidize some services…emergency, OB and general surgery. The Health Care commission website is www.wyominghealthcarecommission.org State Budget – State Representative Roy Cohee, Casper Imagine if you won a $2000 lottery…what would you do with it? Blow it? Save it? Invest in something and if so, what? Assume you have kids living in Wyoming. Would your thinking change? The state’s $1 billion surplus…roughly $2000 for every Wyoming citizen…is mainly because of natural gas price hikes and production increases. So what will the state’s 90 legislative policy makers, of which 25 are new, do? They are all exposed to state agencies who all want more money. The majority at this time is committed to putting 25% into the Permanent Mineral Trust Fund and 25% into the Budget Reserve Account. The rest could be spent on the following – water development ($75 million), University of Wyoming Endowment ($20 million), Community Colleges Endowment ($35 million), health, corrections, economic development, state buildings, and education. Wyoming Rail Plan – Marty Manesco, Riverton Wyoming has a lack of rail competition…especially in the western two-thirds of the state. Many companies on the other hand require competitive rail…not rates which are subject to premiums of 60% or more. A Tri-Basin project did surface in the past with service from Shoshone to Green River to move trona but it failed because shippers obtained competitive rates. But given Wyoming’s huge mineral deposits the effect should be initiated once gain to have such untapped products as gypsum, phosphate, bentonite and coal, plus serve as right-of-way corridor for fiber optics, electric transmission liens and cable lines. Wyoming Forum Report – “Public Lands: Get Out of the Rut” Over 500 people attended this year’s Wyoming Forum. The full report can be read by visiting our website, www.wba.vcn.com. One of the best ever Wyoming Heritage Foundation forums, the program featured extensive discussion on, and solutions for, public land issues. Key themes included : A Healthy Economy Equals a Healthy Environment. There is a dependency between making a living and our quality of life in Wyoming. Eco-systems should be seen as being dynamic, not a snapshot in time…and it’s critical to come up with local solutions for Wyoming. NEPA – the Environmental Protection Act - - Is Misunderstood and Needs Revising. Both NEPA and Endangered Species Act have led to delays, too much litigation, lack of agency consistency and too much agency time and money spent on defending decisions. As a result, NEPA has become a means for attack. Yet NEPA enforcement rests with the judicial system, not Congress, with public input often counted/weighed in terms of “votes” by letter, e-mail, etc. Industry and the Environmental Community Remain at Odds. The difficulty in finding consensus/collaboration is enormous. There is too much exclusiveness. Viewpoints are challenged as biased. Best science of one group is challenged by the other. The problem stems, in part, because consistent definitions of multiple-use don’t exist…but even more so is the labeling by all groups and difficulty in finding common ground. There Exists a Lack of Coordination between Regulating Agencies and Agency Effectiveness Overall. This includes the paradox of when resources are developed, there’s a decline of land values…plus controversies regarding the lack of “unbiased information” to make decisions. There is way too much planning versus implementation and monitoring. The Definition of Sustainability Is Important to Resolve. Overseas there are negative impacts from development as environmental rules these are lax by comparison to the U.S. Here in Wyoming mineral development holds extraordinary revenue potential but should minerals be developed and if so, how given archeological studies and NEPA permitting. Overall, there is not enough discussion about long term strategies such as hydro electric, alternative energy vehicles, and nuclear, plus timbering (to provide material to make paper) is one sixth of what it once was. Overall, American should develop its resources more to meet its needs via long term efficient use.
Forum Sponsors . . . We Thank You Heritage Sponsors * Encana Duke Energy McGarvin-Moberly Construction McMurry Foundation McMurry Ready Mir Jim Nielson PacifiCorp Harry Thorson Foundation Ultra Resources, Inc
Wyoming Forum Program Sponsors BP America Bureau of Land Management Center for Energy & Economic Development Devon Energy EOG Resources First Interstate Bank U.S. Forest Service Institute for Environment and Natural Resources Kennecott Energy PacifiCorp Parkway Plaza Hotel & Convention Center Shell Wells Fargo Bank Wyoming Business Report Wyoming Coal Bed Natural Gas Alliance Wyoming Department of Education Xcel Energy/Cheyenne Light, Fuel & Power
Trade Association Sponsors Petroleum Association of Wyoming Wyoming Bankers Association Wyoming Chamber of Commerce Executives Wyoming Contractors Association Wyoming Economic Development Association Wyoming Medical Society Wyoming Mining Association Wyoming Stock Growers Association Wyoming Timber Association Wyoming Truckers Association Wyoming Wool Growers Association
* Major Contributors to Spring Membership Drive
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