County escapes subsidy snarl
While one federal program goes back into a holding pattern, another is a go for at least another year
By Larry Meyer
Argus Observer
Sunday, December 23, 2007 12:52 AM PST
VALE - In the midst of a congressional budget tilt regarding a federal subsidy to make up lost timber revenue, Malheur County may emerge better off than other entities across Oregon and the nation.
The federal subsidy, known as the Rural Schools and Community Self-determination Act, was bounced from a huge congressional energy bill last week when senators agreed to peel away money to pay for the measure. The money is designed to offset states and counties for the loss of timber revenues because of endangered species regulations.
Malheur County does not depend on the Rural Schools and Community Self-determination Act funding as much as other counties in Oregon. But the county does rely on the federal Payments in Lieu of Taxes (PILT) program, and it received the good news last week the subsidy was approved for another year. Malheur County will receive about the same amount of PILT money it did this year, officials said.
PILT funds reimburse counties that contain federal land for loss of property taxes, and with more than 70 percent of its area in federal land, Malheur County is a large recipient.
For the 2007 to 2008 fiscal year, the county received about $1.3 million and should gain about the same for the next year, according to Paul Beddoe, associate legislative director, with the National Association of Counties.
Beddoe told Malheur County Judge Dan Joyce the PILT money for next year was included in the Omnibus bill passed by Congress last week and is expected to be signed by President Bush, Joyce said.
“They may shave a little off,” Joyce said, but confirmed the final amount should be about the same.
“We rely on PILT,” Joyce said.
Malheur County receives the highest amount of PILT payments in Oregon. How the PILT payment program would be impacted if the Rural Schools and Community Self-determination Act does not gain congressional approval is a mystery.
“That is a good question,” Joyce said about the future of the Rural Schools and Community Self-determination Act and the PILT agenda.
While PILT payments were established by law, the amounts are set every year, and maintaining those funds or getting them increased is an ongoing effort that Joyce continues to be involved in.
“We’ll go back and work on increasing it,” he said. “You have to be at the table.”
Sen. Ron Wyden, D-Ore., has introduced legislation to fully fund PILT for five years.
Supporters for reauthorization of the Rural Schools and Community Self-determination Act were disappointed in the Senate vote to remove the payments from the energy bill.
Some senators who voted against them were from states that benefited from the payments.
“We haven’t figured out why,” Joyce said.
Hope for federal compensation is not completely lost. Friday, for example, the United States Forest Service announced Oregon’s rural counties would take in about $153 million in timber payments next year.
Oregon will gain the largest amount of the $389 million set aside for the agenda.
With the Senate action on the energy bill, though, there is no guarantee the timber money will be available after next year.
The Oregon congressional delegation has consistently pushed for a four-year extension of the Rural Schools and Community Self-determination Act.
— The Associated Press also contributed to this report.
