OFFICE OF GOVERNOR MATT MEAD
October 24, 2011
Governor Sees Positives and Negatives of New CREG Forecast
CHEYENNE, Wyo. – Governor Matt Mead says the latest forecast from Wyoming’s Consensus Revenue Estimating Group shows the state’s economy is stable. However, Governor Mead is concerned because the CREG is forecasting that revenue will flatten out or slightly decrease in the future.
“I believe everyone in the state has to adjust to the fact that the days of big revenue spikes are likely behind us and we need to live within our means,” Governor Mead said. “It is fortunate that the energy industry has led Wyoming out of the recession, but I recognize the national economy is fragile, and because of that, it cannot withstand energy prices going much higher.”
One bright spot in this report is the forecast of oil production increasing in Wyoming, but Governor Mead points out this is offset by a decrease in the forecast of natural gas production. He also notes that the national economy seems to be having an impact on investment income. Low interest rates caused the Treasurer to reduce forecasted investment income in 2012 and for 2013 and 2014 as well.
“Our revenue is still coming in at rates below what Wyoming saw in 2008,” Governor Mead said. “This certainly shows that there are tough decisions ahead as I put together a budget and work with the Legislature this winter.”