Issue link: https://digital.copcomm.com/i/1297492
Ron Sniffin Executive Director, WEA rsniffin@wyoea.org (307)214-3389 E X E C U T I V E D I R E C T O R Wyoming is at a critical juncture. Amid a pandemic, the state faces perhaps its worst "bust" in history. The Cowboy State has long been prone to a boom and bust cycle, largely due to our dependence on the extraction industry. Wyoming education has been the envy of the nation. In large part, this is due to our well-funded schools, which can be credited largely to the extraction industry . While the Wyoming constitution requires a high-quality education for every Wyoming student, it has been the extraction industry that has helped us meet that mandate. Will this industry rebound once again and save our state's economy? At the moment, the prospect looks grim. Once again, we hear the cry to "diversify the economy." Ironically, a Regional Economic Models, Inc. (REMI) report commissioned by the Legislature in 2016 highlights that economic diversification would only deepen the state's fiscal crisis under Wyoming's current tax structure. With additional positions would come an additional use of services and infrastructure. The cost of providing and maintaining more services and infrastructure would outpace additional revenue generated by economic diversification, under our existing tax structu re. Wyoming relies on sales and use tax, investment income, and severance tax for most of its revenue. In multiple studies conducted by the Institute on Taxation and Economic Policy (ITEP), Wyoming's tax structure was found to be one of the 10th most regressive in America. F r o m t h e W y o m i n g ' s R e g r e s s i v e T a x S t r u c t u r e i s H u r t i n g E d u c a t i o n This type of tax structure encourages wealth inequality and, as was found by REMI's analysis, makes the state's economy conducive to adding only low-paying jobs. This is in large part because Wyoming does not have a state income tax. Sales and use tax is regressive because it increases the amount of money spent on necessities like food and other essential household goods by low-income families. Wealthy ci tizens can save or invest, sheltering income from taxation, while low-income and middle-class Wyoming families bear the lion's share of the sales and use tax burden. For these reasons, it is apparent that it is the responsibility of the Legislature to address the state's regressive tax structure. Then, and only then, can the Legislature move to diversify Wyoming's economy. It is important to note that eco nomic diversification does not mean the exclusion or termination of extraction industries as vital components to the state's economy. The Wyoming Education Association recognizes the massive contribution to education made by extraction industry businesses operating in the state of Wyoming. They will remain a significant contributor to our economy. Economic diversification simply means a larger economic pi e with new sectors that will contribute to the work opportunity and income opportunity for Wyoming's citizens and the children of Wyoming. Take the first step to remedy our ineffective tax structure and make a difference for Wyoming students by becoming an informed, engaged voter. Reference the WEA Political Action for Education (WEA-PACE) candidate endorsements on page 13 to guide you in your decision-mak ing at the polls. In gratitude, Ron Sniffin Executive Director, WEA 5