With the price of natural gas hitting a ten year low recently at $2.00 per million cubic feet, Governor Matt Mead has asked that all state agencies, with the exception of the Department of Health, prepare for 8% cuts to their budgets for fiscal year 2014. In the state budget that was put together this past winter, the Governor and the State Legislature had directed state agencies to prepare for 4% cuts for the next biennium.
Governor Matt Mead says that his approach is to try and stay ahead of potential pitfalls and be proactive.
An 8% cut to state agencies budgets means that the budget for fiscal year 2014 would be cut by $74.5 million. Natural gas production is the number one source of revenue in the state, and if analysts projections are correct for the rest of the year, Wyoming's general fund could see a reduction in over $125 million.