Counties worry about possible loss of timber money

Northwest Montana county commissioners and school administrators are paying close attention to the uncertain reauthorization of a law that has delivered federal payments to timber counties for the last five years.

If the law is not reauthorized, they say, local taxpayers will know it.

Congress will soon reconsider the Secure Rural Schools and Communities Self Determination of Act of 2000. The law, which distributes so-called "county payments," is set to expire after this year.

Last year, roughly $1.2 million was distributed in Flathead County and $4.9 million in Lincoln County. About two-thirds of the money goes toward county road operations and one-third is distributed to schools.

A total of 34 Montana counties received $11.6 million last year.

The law also distributes money to local Resource Advisory Committees that develop and fund forestry projects of joint interest to counties and the U.S. Forest Service.

"It's a very important subject," said Myrt Webb, interim Flathead County administrator. "With all the other strains on the [federal] budget, reauthorization of this bill is far from certain."

Webb said the payments account for nearly one-fifth of Flathead County's $5 million road budget.

"It would be very painful if we did not get that," Webb said.

The payments account for Lincoln County's entire road budget, according to County Commissioner Rita Windom.

To replace that money, she said, the county would have to levy 100 mills in property taxes, compared to the 61 mills that are currently levied.

"If we don't get those monies, and we have to levy 100 mills, there will never be another school levy or another levy of any kind in Lincoln County again, because what kind of taxpayer would ever support that kind of tax burden?" Windom said.

The county payments program is rooted in 1908 law that directed the Forest Service to distribute 25 percent of all revenue generated from national forest lands to counties and public schools. It came about in counties where much or most of the land base was made up of federal lands, leaving limited room for economic and tax-base development.

The "25 percent fund" provided considerable, reliable revenue to forest counties for decades - until timber harvests started declining drastically in the late 1980s.

In response, Congress developed the "county payments" law to replace the 25 percent fund.

Counties in all 50 states receive some of the aid, which totaled about $490 million in the current fiscal year, but Oregon is by far the biggest beneficiary. Thirty-two of the state's 36 counties receive aid totaling $273 million, far surpassing the $67 million given to No. 2 California.

Washington state was next with $45 million, followed by Idaho with nearly $24 million and Montana with $14 million.

While the law's reauthorization has considerable bipartisan support, Department of Agriculture Undersecretary Mark Rey recently said he anticipates Congress will face a "real struggle" in fully funding the measure in a tight budget year.

"The commissioners are very aware of the pending reauthorization," Webb said.

Flathead, Lincoln and other Montana counties are highly active in a national association of timber counties that has been lobbying for reauthorizing the law.

The Associated Press contributed to this report.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com