Wyoming would set aside reserve money for long-term investments

The state auditor would move reserve money into the Wyoming generational investment account. Each yearly transfer would be up to $100 million from the legislative stabilization reserve account, Wyoming's budget reserve. Transfers would follow all other transfers and spending required by law for that fiscal year. Only money available without taking the reserve's unspent, uncommitted balance below $1 billion would be transferred. If enacted, the law would take effect immediately. The proposed transfer schedule starts July 1, 2026, and repeats each July 1.

The state treasurer would invest the account's money under a specified risk limit. The treasurer could invest money not already committed to another use in stocks and other ownership investments. Overall risk could not significantly exceed a comparison portfolio of 85% private equity, meaning ownership in private companies, and 15% private credit, meaning privately arranged loans. The state loan and investment board would seek strong returns for the risk taken while considering safety and access to cash.

The state treasurer would track each annual deposit's earnings separately, and eligible earnings would go equally to the general fund and budget reserve. These rules would cover each annual transfer from the budget reserve and the earnings tied to that transfer. Annual deposits could not be withdrawn. For these payouts, earnings would include interest, dividends, gains from selling investments, and money returned from invested capital. Earnings payouts would begin July 1, 20 fiscal years after the related transfer. Payments would occur as earnings arrive or the investment reaches its end date.

The governor's spending recommendations under this budget rule would exclude proposals to spend, redirect, or transfer money paid out from the investment account. The rule would cover the governor's required spending recommendations for the next two-year budget or the remaining period of a supplemental budget. The exclusion would apply to money distributed under the account's earnings payout rules.