Federal funds for timber counties pending
Positive action in Washington, D.C. is occurring that could result in a four-year extension of federal funding for timber-dependent counties such as Josephine County.
U.S. Rep. Peter DeFazio (D-Springfield) lauded passage of the Public Land Communities Transition Act of 2007. It would reauthorize the successful “county payments” law for an additional four years.
The legislation, HR 3058, was introduced in July by DeFazio and Rep. Nick Rahall (D-West Va.), chairman of the House Natural Resources Committee.
The bill was reported out of committee on Wednesday, Sept. 26, and headed for a House vote. Rep. Greg Walden (R-Ore.) also has been instrumental in pushing for the extension.
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The potential loss of the federal funding, which represents some 65 percent of the Josephine County general fund, will be addressed by county commissioners in Cave Junction on Thursday, Oct. 11.
The town hall is set for Lorna Byrne Middle School from 6 to 8 p.m.
One also will be held Thursday, Oct. 4 at the same time at North Valley High School.
DeFazio last week offered an amendment in the nature of a substitute to reduce the cost of the bill and to change the offsets used to fund it. The bill was approved by voice vote.
“The county payments program is the lifeblood of rural counties across America who serve as stewards of our federal lands,” DeFazio said. “These rural counties cannot continue to survive indefinitely in crisis mode. They need certainty, and they need time to transition and plan how they’re going to operate with reduced federal assistance.
“This legislation accomplishes that goal.”
Of Oregon’s 36 counties, 32 received payments through the program totaling more than $282 million last year. Because of the large amount of timber historically harvested from federal land in the Beaver State, Oregon counties have received significant payments from the program, with the Fourth District of Oregon receiving the most federal investment.
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Before the program was passed in 2000, DeFazio had pushed to make the program permanent. However, he said, due to objections by some in the timber industry and even some county officials, the program was modified to a six-year program.
As the program faced expiration last year, counties in Oregon such as Josephine, and across the nation, began to close libraries, lay off county employees, curtail sheriff patrols, release prisoners early, curtail search-and-rescue operations, and deny mental health services. At least one county is on the brink of declaring bankruptcy and giving up county status, DeFazio reported.
Earlier this year, DeFazio and others made numerous attempts to extend the program. They ultimately were successful in getting a one-year extension of the program attached to the emergency supplemental appropriations bill. Counties will receive funding under that law through June 2008.
However, given the uncertainty of continued federal assistance, many counties have continued to slash funding for vital services such as education, health care, and law enforcement.
In July, DeFazio and Rahall introduced HR 3058, the Public Land Communities Transition Assistance Act of 2007. The bill is based on the Wyden formula originally offered earlier this year. That proposal, mirrored in H.R. 3058, is a multiyear reauthorization of the county payments program. It ramps down funding for the program 10 percent per year, while ramping up the Payments-in-Lieu of Taxes (PILT) program during the same four-year timeframe.
In response to testimony during a July hearing on HR 3058, DeFazio made several changes to the bill, and last week offered an amendment in the nature of a substitute to address those concerns. First, the substitute made several changes in the bill to reduce the overall cost of the legislation.
Those changes include extending the Secure Rural Schools program through 2011 rather than 2012, which will result in a cost saving of $761 million. The substitute also ramps up PILT payments during the next three years, rather than to immediately fully fund PILT. This change will result in a cost saving of approximately $112 million.
Finally, the substitute changed the “offsets” to pay for the bill. As introduced, the bill would have authorized the Interior secretary to raise revenue from commercial activities to offset the costs of the bill. However, during the July hearing several Republican members expressed concerns about those offsets, Defazio said.
The substitute uses the fees from Outer Continental Shelf oil and gas leases to pay for the bill.
Total cost of the bill is estimated at $2.7 billion during a four-year period. The Congressional Budget Office estimates that the OCS fees will provide $2.875 billion during a five-year period.
