(a) On or before the third Monday in November of the year preceding the year the legislature convenes in budget session, the governor shall distribute to each legislator electronic, or upon request printed, copies of the state budget, covering the next biennial budget period beginning on July 1 of the ensuing year, containing the itemized requests of the agencies for appropriations or other funds, estimated revenues and receipts to the state, and his recommendations and conclusions. The state budget shall include:

(i) Expenditures incurred in the two (2) previous fiscal years and estimates of expenditures for the ensuing two (2) fiscal years;

(ii) Revenues during the two (2) previous fiscal years and estimated receipts for the ensuing two (2) fiscal years;

(iii) The indebtedness and obligations of the state;

(iv) The condition of the various funds and the state treasury as a whole;

(v) A general summary of the economic and social conditions of the state;

(vi) Recommendations relative to state program goals and objectives.

(b) The department shall furnish to the legislative service office copies of all authorizations by the governor pursuant to W.S. 9-2-1005(b) within ten (10) days following the authorization. The legislative service office shall make quarterly reports of all authorizations by the governor to the legislative management council and the joint appropriations committee. The furnishing of copies of authorizations required under this subsection shall be in addition to the notice required by W.S. 9-2-1005(b).

(c) Preparation of supplemental budgets for presentation in general sessions shall also be made within the time frame of W.S. 9-2-1012 and this section.

(d) In addition to the items contained in subsection (a) of this section and notwithstanding any other recommendations made by the governor, the state budget shall also include the governor's recommendations for appropriations for the ensuing two (2) years, or if a supplemental budget request, the remainder of the budget period, subject to the following:

(i) The state budget shall include the governor's recommendations for a total appropriation from the public school foundation program account and based upon recommendations of the select school facilities committee under W.S. 28-11-301, a total appropriation for school capital construction purposes for both fiscal years;

(ii) The total recommended appropriations under this subsection for any two (2) fiscal year budget period shall not exceed the total estimated revenues for that two (2) year period. The total estimated revenues computed under this paragraph shall not include increases in existing revenue sources which would be available to the state only after enactment of legislation in addition to existing law, but shall include the unencumbered balances in all other accounts in all other expendable funds subject to this section, and as further provided herein, as those funds are identified in accordance with standards promulgated by the governmental accounting standards board, but specifically excluding pension funds, nonexpendable trust funds, debt service funds and intragovernmental funds, that would be available for that budget period. Funds within the permanent Wyoming mineral trust fund reserve account created under W.S. 9-4-719(b), the common school permanent fund reserve account created under W.S. 9-4-719(f), funds within the legislative stabilization reserve account in excess of the limitation under subparagraph (iii)(C) of this

subsection and the general fund reserve amount specified by W.S. 9-2-1012(e) shall not be included in total estimated revenues computed under this paragraph. Funds from a contingent appropriation shall not be included as an estimated source of revenue or funds available unless those funds previously had been authorized to be expended within the fiscal period covering the budget period of the recommendation;

(iii) The total recommended appropriations under this subsection shall not include any of the following:

(A) The diversion of any existing revenue sources which diversion would require enactment of legislation in addition to existing law;

(B) The transfer of funds from an account to another account;

(C) An appropriation from the legislative stabilization reserve account, to the extent the recommended appropriation together with any appropriation under W.S. 9-2-1014.3, other recommended contingent appropriation or other recommended appropriation from the legislative stabilization reserve account would exceed in any fiscal year five percent (5%) of the balance of that account as of the first day of the fiscal year in which the recommendation is made;

(D) The transfer of funds from any contingent appropriation shall not be included, unless those funds previously had been authorized to be expended within the fiscal period covering the budget period of the recommendation by law other than W.S. 9-2-1014.2 and 9-2-1014.3 and remain unexpended, unencumbered and unobligated. Unencumbered, unobligated funds from a contingent appropriation authorized for one (1) fiscal year under W.S. 9-2-1014.2 or from an appropriation under W.S. 9-2-1014.3 shall lapse at the end of the fiscal year and shall not be included in the recommended appropriations for any subsequent fiscal year.

(iv) As used in this subsection, 'appropriations' include any of the following:

(A) Specific legislative authorization to expend state revenues contained in a budget bill that is enacted into law;

(B) An amount to be expended from an account which does not require additional specific legislative authorization;

(C) A specific statutory distribution of a revenue source.

(v) For each submitted budget the governor shall:

(A) Specify the exercise of any authority under W.S. 9-2-1014.2 in the current fiscal biennium;

(B) Identify any structural budget deficit or budget shortfall he believes exists within the fiscal biennium for which the budget is submitted or will exist within the immediately succeeding fiscal biennium;

(C) Include recommendations for the amount of contingent appropriations which should be made or supplemented for the existing fiscal biennium and each of the two (2) immediately succeeding fiscal biennia. The governor shall not recommend a contingent appropriation from the legislative reserve account which would result in the total of all appropriations, including any appropriation under W.S. 9-2-1014.3, in any fiscal year exceeding five percent (5%) of the balance of that account as of the first day of the fiscal year in which the recommendation is made.

(vi) Nothing in this subsection prevents the governor from recommending an additional, alternative budget without the limitations specified in this subsection;

(vii) The state budget may include recommendations for additional funding for state agencies that receive federal mineral royalties or severance tax distributions and for local governments from federal mineral royalties or severance tax distributions under W.S. 9-4-601(d)(iv) and 39-14-801(d), subject to the following:

(A) To the extent the legislature appropriates funds under this paragraph from the general fund for local governments, the appropriation shall comply with and be subject to the following:

(I) The amount appropriated to local governments shall not exceed the amount available under this

paragraph, less appropriations under this paragraph to state agencies;

(II) A total amount shall be annually appropriated to the state treasurer to be distributed to all local governments as follows:

(1) Thirty percent (30%) to counties, in the proportion which the population of the county bears to total state population;

(2) Seventy percent (70%) to cities and towns, each city and town to receive an amount in the proportion which the population of the city or town bears to the population of all cities and towns in Wyoming.

(III) The distributions to local governments under this paragraph shall be made by the state treasurer not later than October 15 of the fiscal year next following the fiscal year for which the appropriation is made. The distributions shall be from revenues actually recognized in the fiscal year for which the appropriation is made. Any interest earned on invested funds allocated to local governments under this paragraph shall be retained in the general fund as a reserve amount.

(B) To the extent that actual recognized revenues are less than the estimated deposits referenced in this paragraph:

(I) The distribution of any appropriation to local governments under this paragraph shall be reduced by a pro rata amount; and

(II) The state auditor shall reduce the spending authority of any state agency receiving an appropriation under this paragraph by a pro rata amount.

(C) As used in this paragraph:

(I) 'Local government' means any county or municipality;

(II) 'State agency' means the department of transportation, the University of Wyoming and the water development office.

(e) Repealed By Laws 2003, Ch. 34, § 1.

(f) Except for an interfund loan made under W.S. 21-13-316, an interfund loan from permanent funds for which an interest rate is not specified by law shall be charged an interest rate equal to the CPI for the twelve (12) month period immediately preceding the effective date of the interfund loan. 'CPI' means the consumer price index for United States city average, all urban consumers, not seasonally adjusted, reported by the bureau of labor statistics of the United States department of labor.