HERITAGE BRIEF

Volume 24  #1

March, 2004

Wyoming Update 

• Just how safe is America’s food chain and what are the relationships between animal and human health?  Find out at this year’s Outlook 2004 Economic Forum on Thursday, April 15^th.  See detailed Agenda inside this newsletter or visit our website at www.wba.vcn.com.
• OHIC - - Ohio Health Insurance Company - - announced the week after the legislative session adjourned that it will discontinue its medical malpractice insurance program in Wyoming.  OHIC presently insures roughly half of Wyoming’s doctors, some 381, as well as 7 hospitals and 2 medical health centers.
• Wyoming‘s employment rate in December was 4%; the U. S. 5.7%.  Nationwide, only four states had lower unemployment rates: Nebraska, Virginia, South Dakota and North Dakota.
• Total non-agriculture employment in Wyoming as of December was 248,000…3300 jobs, or 1.3%, better than December 2002.  According to Dave Ballard, Senior Economist for the Department of Employment, job gains in natural resources and employment account for a large part of the growth.  Using a conservative multiplier of 2, these sectors accounted for 50% of the state’s job creation last year - - a pattern that has existed for the past four years with the energy boom.

Leadership Wyoming

Leadership Wyoming received $60,000 biennium funding for general program from the Wyoming legislature.  The $30,000 per year support will be of great assistance for overall program operations.  Thank You Wyoming Legislature!  Our thanks to Leadership Wyoming graduates and State Senators John Barrasso, Jayne Mockler and Rae Lynn Job; and State Representatives Rosie Berger, Roy Cohee, Dave Edwards, John Hastert and Tom Walsh

Class ’04 will hold its graduation in Sheridan April 30-May1, 2004.  Applications for Class ’05 are due by April 16^th.  Please visit our website at www.wba.vcn.com for more information about the Wyoming Heritage Foundation and University of Wyoming Leadership Wyoming partnership program, including the application materials for the Class ’05 which begins August 5, 2004.  

Legislative Session 

* Economic Development 

From a business perspective, the 2004 legislature enacted a number of positive economic development bills to help diversify and strengthen the economy.  Ten years ago…even five…many of these ideas weren’t even being discussed.  This year things were different.  The Legislature and Governor recognize all too well that: 

·        Wyoming’s population is aging;

·        Our budget surplus, because of minerals, will last only so long and can, and should, be used to advance the state’s economy and infrastructure; and

·        With a stronger and more diversified economy, new jobs will be created…for our youth to stay and for people to move to Wyoming. 

The economic development initiatives approved by the Legislature and signed into law by Governor Freudenthal include: 

·        Sales Tax Exemption on Manufacturing Equipment (HB44).  Provides a tax incentive to keep and/or move businesses to Wyoming.  Wyoming was one of the four states without this incentive.

·        Air Service Enhancement (HB60). Extends the sunset data for this $3 million appropriation which was made in the 2004 session.  Gives oversight to the Aeronautics Commission.  Provides money for local communities based, on local financial efforts, to “subsidize” additional/increase air service over a limited period of time.

·        Wyoming Main Street Program (HB27). Establishes a pilot program for five municipalities representing different geographical regions of Wyoming for the revitalization of business areas, utilizing programs offered by the National Main Street Center/National Trust for Historic Preservation.

·        Business Ready Community Grants (HB95).  Provides funding of $25 million for this unique program for local infrastructure, including business parks.  Legislation was initially approved in 2004; now is fully funded.

·        Local Tax Revenues for Economic Development (HJ3). To be voted on this November, this amendment to the Wyoming Constitution would allow the use of local government tax revenues for economic or industrial development projects, provided a majority vote of local registered voters.

·        Infrastructure Authority (SF52). Creates an authority to construct, finance and issue bonds for electric transmission facilities…an important initiative as a means to stimulate more power plant construction in Wyoming and the movement of electricity versus coal to demand areas.

·        Enhanced Oil Recovery (SF61). Creates a Commission to focus on oil and gas enhanced oil recovery issues at the University of Wyoming, including technological issues, such as carbon dioxide separation, and technology traffic to help industry. 

* Health Care 

The biggest disappointment during this year’s session was the failure to enact Tort Reform.  Numerous bills were introduced, but tort reform efforts fell short of the business community’s goal. HJR2, caps on non-economic damages for health care providers was defeated 35-22, with 2 excused in the House.  Because it’s a Constitutional Amendment issue, 40 votes were needed.  SJ2 in the Senate failed 18-12.  Twenty votes were needed for approval. 

HJ11 - - the important Medicaid Errors Commission - - was approved and will be on the ballot in November. 

A year ago the Tort Reform legislation was defeated in the House Judiciary Committee and therefore never made it to the floor of the House.  Tort Reform was one of the recommendations put forward by the Wyoming Health Care Commission for this year’s session.  Much progress has been made over the past year; Tort Reform issues will be back again. 

* 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 February 27, 2004 at Little America in Cheyenne, Wyoming. 

Action Items

·        Decision to hold an Outlook 2004 Economic Forum, with the focus being Animal and Human Health issues, on April 15, 2004 in Casper.

·        Approval of Wyoming Business Alliance participation in a Federal Register monitoring program regarding water and national resource issues.

·        Approval of the theme “How Are the Children?” for the annual Wyoming Public Forum to be held on November 18-19, 2004.

·        Organization of the following committees for the Steering Committee:

1.   Finance

2.   Membership/Public Relations

3.   Prosperity Project

4.   Economic/Legislative/Regulatory

5.   Public Forums

6.   Special Projects

7.   National Resources

SHPO - Phil Noble, Director of the Department of State Parks and Cultural Resources and Art Reese, who is the Interim Director of SHPO.

·        A year ago SHPO was not very supportive of working with industries such as coal bed methane.  One of the big issues is the Section 106 Review.  Over the last three months a full report was completed regarding SHPO.  The overall goal is to make SHPO more industry friendly and that will take place with the Section 106 Review process relating to archeological instances in the state and impacts on natural resource development. 

·        Section 106 is a process that’s related to pre-emptive planning.  Over the last three years there have been some 4000 Section 106 Permits.  A lot of states have “historic context plans” which work for developers.  Wyoming doesn’t have this option and therefore the Section 106 Permit process is employed.  Wyoming now will have a Historic Context Plan which will be a better basis for industry to proceed in development.  This approach is supported by industry as well as the BLM.  SHPO and the BLM in the past have had an adversarial relationship which has impacted negatively industry, the BLM and SHPO.

Animal and Wildlife Health – Lee Romsa, Brand Commissioner, Wyoming Livestock Board, Cheyenne

·        Brucellosis is a disease that causes abortion in cattle, elk and bison.  Bacteria is shed from infected animals at birthing event.  Brucellosis is a community disease.  It comes from animal to animal; movement of animals commonly. 

·        Vaccination is only one tool in the management of brucellosis, and it is not 100% effective.

• All but two states in the U. S. have achieved brucellosis free status. 

• Both Yellowstone National Park and Grand Teton National Park have infected bison and elk.  Bison have an approximate infection rate of 50%.  Elk have an infection rate of 28%.  Spreading from animal to animal is more likely in high animal density.  There are twenty-two elk feedgrounds in Wyoming, including the National Elk Refuge.   

• Impacts of brucellosis remain in the Greater Yellowstone Area.  The potential for the spread of brucellosis in wildlife beyond the Greater Yellowstone Area is significant.  Wildlife health and population are affected.  Control programs are expensive, approximately $30 million annually.

Federal Register – Harriet Hageman, Attorney, Cheyenne, Wyoming

• The Federal Register and its impacts on Wyoming is important.  It is important to track these notices and rule making which effect our state, particularly with water and natural resource issues. 
• The Wyoming Conservation Alliance proposal is to monitor water and natural resource issues for the business community.  The effort will monitor the Federal Register on BLM, Forest Service, Energy Department, Bureau of Reclamation and Homeland Security, Fish and Wildlife and Department of Interior issues.

Health Care Commission – Dixie Roberts, American Express Financial Advisors and Member of the Wyoming Health Care Commission and Leadership Wyoming Class 2001 Graduate.

• Wyoming’s health care industry is in a crisis.

·        What does health care mean and is the health care crisis significant?  Is it premiums that you have to pay more for?  Is it the lack of insurance, the malpractice rate, the low reimbursement for physicians?  Is it the cost of technology? For seniors is it lack of providers?  For rural citizens is it the problem of having providers?  What about the underinsured?  The industry?  The employer?  Economic developers?  The list goes on and on.

·        The position of the Health Care Commission was that tort reform was an issue that had to be looked at in Wyoming. They recommended the Legislature proceed with it because even if a Constitutional Amendment was passed this November, the legislature would in 2005 have to decide what the best plan for Wyoming should be.

·        Health care costs are exploding and are growing about the rate of 14% per year and America’s health care percentage of total spending is the highest in the world.  Premiums are expected to increase by two times over the next five years because of many factors in health care costs. 

·        Wyoming is one of the few states in the nation that does not have tort reform.  All of surrounding states around Wyoming, plus North Dakota, have it.  Of eleven specialty malpractice insurance areas in these states, Wyoming ranked number one (highest) in nine of those eleven specialty areas.  For example, with OB the average rate in Wyoming is almost $39,000 versus $22,000 for the neighboring state average. 

·        There are 73,000 uninsured in Wyoming.

Air Quality – Greg Schafer, Thunder Basin Coal, Wright

• The Administration is trying to achieve reductions in a number of areas, including interstate reductions, to improve air quality.  The effort currently targets 30 states east of Wyoming.

·        Reducing mercury levels/emissions which results from coal burning power plants is one goal.  The goal is to reduce the current 48 tons per year.  The U. S. generates 1% of the worldwide emissions.  While very little, mercury does remain in the environment for a long time.

Legislative Dinner

The Wyoming Business Alliance Legislative Dinner on February 27^th was a great success.  Over 60 legislators attended, including Speaker of the House Fred Parady and Senate President April Brimmer Kunz, plus State Floor Majority Floor Leader Grant Larson and Senate Minority Floor Leader Jayne Mockler, House Majority Floor Leader Randall Luthi and Minority Floor Leader Wayne Reese, as well as 19 of the 24 House and Senate Committee Chairs.

Stan Hathaway Tribute

On Friday morning, March 27^th, the State of Wyoming honored former Governor Stan Hathaway with a plaque in his honor which will be on display in the State Capitol.  Governor Hathaway and his wife Bobby were present at the ceremony.  State Treasurer Cynthia Lummis, a Wyoming Business Alliance/Wyoming Heritage Foundation Steering Committee member, presided at the ceremony. The governor was a founding member of the Wyoming Heritage Society/Wyoming Heritage Foundation in 1979.  He was the recipient of the Mary Mead Steinhaur Heritage Award in 2000 for his achievements in public service, private sector leadership and commitment to Wyoming’s economic growth.

State Budget

Biennium Beginning July 1, 2004.

Recap

Major Spending Areas

Economic Development