CHEYENNE — Gov. Dave Freudenthal agreed today with the overall assessments of economists this week, that Wyoming is in better shape economically than most states, but it is not time yet to start singing “happy days are here again.”

A team of state, academic and private economists spoke Tuesday at the Southeast Wyoming Economic Forecast luncheon, sponsored by the Wyoming Business Report, at Little America in Cheyenne.  The consensus of the economists is that Wyoming is doing better than most states; Wyoming will have to pull in its belt and things will get worse before they get better – for Wyoming, the nation and the world.

The Forecast luncheon and panel presentation was moderated by Dr. Brent Hathaway, dean of the University of Wyoming College of Business. The economists were Dr. Robert Godby, chairperson of the UW Department of Economics and Finance; Buck McVeigh, administrator of the state’s Economic Analysis Division and Stig Hallingbye, regional president of American National Bank.

In Freudenthal’s press conference this morning, he acknowledged that Wyoming’s unemployment rate is less than half of the national rate and noted that foreclosures are up a bit, but foreclosure rates are “better than other states” since Wyoming banks never pursued “funny money.”

Still, said the governor, Wyoming citizens have lost wealth in the stock market, 401(k)s and retirement accounts, along with everyone else.

“We haven’t had significant layoffs in Wyoming,” said Freudenthal, although there have been job losses. He also noted that housing values have remained fairly stable in Wyoming, and haven’t crashed like they have in other states.

“There is a psychological affect,” he said, from all the bad economic news in the deepest recession since the Great Depression. Sales tax revenues, spending on recreation and tourism are down, but Wyoming’s revenues haven’t been as badly hit as other states, since the energy industry pays taxes on industrial equipment at work in the state.

Freudenthal said employment for Wyoming citizens is undergoing changes, and that charities are beginning to have trouble meeting a rising demand for charitable goods and services. “I want to encourage our citizens to help” those in need, he added.

The governor and the above economists don’t know how long Wyoming can avoid the deepening national pain and anxiety, but all are concerned about dropping energy prices and how that might impact the Wyoming economy.

“Wyoming has never participated in the highest highs or lowest lows of the national economy,” said Freudenthal, but no one knows how deep or long this recession will run.

Asked about economic stimulus plan by President-elect Barack Obama, and its emphasis on infrastructure, Gov. Freudenthal said Wyoming has traditional infrastructure needs like roads and bridges.

“I hope the new Administration will broaden their definition of infrastructure,” he said, to include transmission lines and pipelines. He warned that without means to deliver energy, Wyoming’s energy economy – especially wind energy – will be on the sidelines.

McVeigh’s Outlook

McVeigh was fairly positive in his economic outlook for the state. He said the national price and demand for energy will drive Wyoming’s economy, and getting energy to market will continue to be a challenge.

He said state revenues will soften, but that should be temporary.

For 2009, McVeigh predicted that:

Wyoming population will grow over 1 percent.

Employment numbers will grow by 2 percent – mostly in energy, but also in construction, trade and transportation.

Housing affordability will be best in the West.

A tight labor market will produce few opportunities in rural parts of the state.

Special projects, such as power lines, pipelines, refineries and the NCAR super-computer will generate jobs.

Details of the Economic Forecast presentations will be available on this Website soon.