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Millions in the Balance as Timber Program Expires

By Beacon Staff

A federal law that has in the past decade provided Flathead County with millions of dollars for road department and school funding expired at the end of September, causing concern as the county looks ahead to next year’s budget.

The Secure Rural Schools Act, administered by the U.S. Forest Service, has sent billions of dollars to hundreds of counties in 41 states feeling the sting of declining logging on federal lands. The law was renewed in 2008 and expired this year on Sept. 30.

Also in question is the U.S. Department of the Interior’s Payment in Lieu of Taxes (PILT) program, which sends federal payments to local governments to offset some property tax losses due to nontaxable federal lands within their boundaries.

Since 2008, Flathead County has received $12,108,136 from both programs, making it the second-most recipient behind Lincoln County’s $19,366,413. Montana counties expected a total of $23 million in fiscal year 2011.

Nationwide, Oregon is the number one recipient of Secure Rural Schools funds, collecting $108 million in 2010 alone.

Montana’s U.S. Senate delegation is supporting a bill seeking to renew both the Secure Rural Schools Act and PILT. However, with Congress looking to cut costs and the economy still struggling, Flathead County Administrator Mike Pence said the county has to consider what would happen if the funding does not come through.

“We’re mostly worried for a year from now,” Pence said last week. “It would definitely hurt the road budget.”

Under the 2008 program renewal, a lion’s share of the funds received from the Secure Rural Schools Act must go toward either school funding or roads. PILT money is more flexible, Pence said.

The county’s latest payment from Secure Rural Schools, received on Dec. 30, 2010, was $1,785,555. Of that money, $1,190,965 went toward roads and $594,589 was directed to schools. Pence said the county also put $500,000 in PILT money into roads as well.

“It’s a very, very significant amount of money,” he said.

If the federal programs are not renewed for the next budget, Pence said it would likely result in cuts for the county’s road department, reducing dollars for road maintenance, equipment and personnel costs.

While Pence said the last couple of program-renewal cycles for these funds have come down to the wire, the bad economy is a pressing factor Congress will have to consider.

“I guess I’d have to say we’re worried about it just because of the economic difficulties the country (has),” Pence said. “Congress has to cut somewhere.”

In Congress, Montana’s U.S. Sens. Max Baucus and Jon Tester have signed on to a bill that would reauthorize the Secure Rural Schools Act and provide full funding for the PILT program.

In a joint statement from Tester and Baucus, they acknowledged the importance the money has for counties across the state, being used for construction, roads, education and forest conservation.

“Montana counties are already in a tight spot and will have an even tougher time making ends meet and keeping the lights on if we don’t act now,” Baucus said in a prepared statement. “These programs are contracts between rural America and the federal government that our Montana counties rely upon to balance the books and support schools, roads and jobs.”

Tester said in the statement that Montana’s rural counties should not bear more than their share of the burden as Congress looks to curb spending.

“These initiatives support good schools and infrastructure that are critical to economic development and job creation,” Tester said. “With the challenges ahead, we will do our part to ensure that Montana’s rural counties are not left behind.”

Montana Congressman Denny Rehberg said he is committed to working with Democrats and fellow Republicans to address the state’s needs.

“As we work to address the spending crisis in Washington, Congress must not lose sight of the unique needs of Montana’s rural communities,” Rehberg said in a statement. “I’m working with colleagues from rural districts in both parties to ensure that Montana and other rural states are not overlooked. This isn’t a partisan issue. This is about providing the best education for all our children.”

The renewal bill will be introduced in the Senate this week.

According to The Associated Press, timber counties in Oregon, Washington and Northern California started receiving “safety net payments” in the 1990s to make up for logging cutbacks in national forests to protect the northern spotted owl and salmon.

The Secure Rural Schools Act has allocated over $5 billion to 700 counties in 41 states since it was enacted in 2000.