Wyoming News

LAYING THE GROUNDWORK

Wyoming, Montana Legislators Craft Infrastructure Legislation

By Headwaters News, 11-28-06

With less than a month before most state Legislatures convene, many lawmakers have already begun to roll up their sleeves.

In Wyoming, construction and energy workers have created a housing crisis, and in some places a lodging crisis as well, where energy workers have filled up all the available housing and all the motel and hotel rooms, too. The Casper Star-Tribune reports that Wyoming lawmakers will consider legislation next session to make housing a bit more affordable by having the state and local governments pick up the tab for putting in water and sewer systems and roads to help cut down on the cost of new homes.

A joint subcommittee prepared the draft legislation that allocates $30 million in grants and loans to counties and towns to help pave the way for new subdivisions to ease the housing crunch and provide energy companies with a stable workforce. Not every member of the Joint Minerals, Business and Economic Development Interim Committee is sold on the legislation crafted however, and urged that rules be put in place to short circuit any abuse of the system.

In Montana, Gov. Brian Schweiter is already working on legislation to help communities that are sure to see an increase in population as coal development picks up in the eastern part of the state. The Billings Gazette reports that Schweitzer is considering changes to a couple of existing programs. One option the governor has is to increase funding from the state’s Coal Board. The Coal Board, which is funded by the state’s coal severance tax, was created to help communities affected by coal development and has made $80 million worth of grants since 1975.

Another option would be to create a measure similar to the Hard-Rock Mining Impact Act, passed in 1981. Under that law, hard-rock mining companies are required to draw up local impact plans and then the companies essentially “prepay” taxes to help fund infrastructure needs until the tax base catches up. A companion bill to the 1981 act was passed a couple of years later that allowed communities lying outside the mine’s taxing district but nevertheless impacted by the mine to take a share of the revenue. The revenue is allocated based on where company employees live and where those employees’ children attend school.

Schweitzer’s spokesperson said the Hard Rock Mining Act model, which is more flexible since the money is paid upfront, may be the preferable one as funding for the Coal Board is appropriated during each legislative session.

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