Local governments want direct distribution protected
SHERIDAN — Local government officials urged Sheridan County’s legislative delegation last week to support and protect direct distribution.
Gov. Mark Gordon’s budget recommendation included $105 million for the state’s direct distribution program, which was adopted in 2004. Direct distribution funds currently come from the state’s general fund and are allocated based on municipalities and counties’ sales and use tax collection per capita and assessed value per capita.
The Sheridan County Chamber of Commerce hosted its annual legislative forum at Sheridan City Hall Dec. 19, allowing local government entities, nonprofit organizations and individuals an opportunity to update lawmakers on their activities and share priorities applicable during the Wyoming Legislature’s upcoming budget session.
Priorities for local government officials centered largely on protecting direct distribution, which is shrouded in debate over how much to fund the program every two years. Gordon’s recommendation for the next biennium of $105 million would see the program’s funding fall by $40 million, or roughly 28%, from its total for the 2025-2026 biennium.
That drop could see Ranchester’s total distribution decrease by $47,000 to $50,000, Mayor Peter Clark estimated last week. He said the program is crucial to the community.
“The smaller the town, the more we rely on state government to support us, because we can’t do it locally,” Clark said. “We cannot generate the fees and services when you have 1,200 people.”
Should property tax revenue continue to fall and direct distribution revenues plummet, Ranchester could be forced to tap into its reserve accounts to cover all of its expenses.
It’s a similar story in Clearmont, according to Mayor Chris Schock, who said losing direct distribution funding would present a challenge to the town, especially as costs continue to climb.
“If the direct distribution went away in Clearmont, I’d have to cut the budget by 30% and that would hurt the town of Clearmont,” Schock said.
Sheridan Mayor Rich Bridger estimated the city would lose approximately $740,000 from the governor’s direct distribution recommendation.
“If this revenue is not replaced, there will undoubtedly be a loss or reduction of services to the citizens of Sheridan, which could include items such as snow and ice removal and replacement of aging vehicles,” Bridger said.
Dayton Mayor Clifford Reed did not attend his scheduled presentation at the chamber’s legislative forum.
Clearmont receives about $50,000 from direct distribution annually, Ranchester about $166,000, Dayton about $135,000, and Sheridan about $2.5 million. Sheridan County receives about $1.6 million each year.
Should the Legislature choose not to codify the direct distribution, Rep. Ken Pendergraft, R-Sheridan, asked how much money top local government officials would like to see allocated to the program. Schock said $200 million, and Clark and Bridger said at least $145 million.
Pushes to codify direct distribution
Sheridan County Administrative Director Cameron Duff urged lawmakers to distribute an additional 7.5% of the state’s sales tax to local communities to replace and ultimately codify the direct distribution program.
Officials from the Wyoming Association of Municipalities and the Wyoming County Commissioners Association urged the Wyoming Legislature’s Joint Appropriations Committee to codify the direct distribution program during a meeting over the summer.
WCCA Executive Director Jerimiah Rieman proposed during that meeting that the state dedicate an additional 8% of its sales and use tax revenue toward the program. Doing so, he said, would equate to about $77 million of the 2024 statewide collection and provide the distribution with growth potential, rather than decreasing tax collections and distributions.
During an October Joint Appropriations Committee meeting, Rep. Scott Smith, R-Lingle, directed Legislative Service Office staff to draft a bill to use an additional 5.6% of the state’s sales and use tax revenue for the direct distribution program.
Wyoming has a 4% sales and use tax instituted statewide and receives 69% of the tax collected, totaling more than $671.4 million in 2024. The remaining 31%, totaling just less than $301.3 million, is distributed to counties and municipalities based first on sale location and then population.
Distributing an additional 5.6% of the statewide collection would send just more than $54.4 million to local governments annually.
The appropriations committee has not yet reviewed 26LSO-0295, the draft bill Smith requested, but it is currently slated to do so during its Monday, Jan. 12 meeting.
This story was published on Dec. 22, 2025.